Property & Casualty Exam Prep 2, Law of Large Numbers and Insurable Risk

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: - How the Law of Large Numbers allows insurers to accurately predict future losses. - The six essential elements of an insurable risk, remembered by the mnemonic CANHAM. - Why catastrophic events, such as wars or nuclear incidents, are typically excluded from insurance policies. - The critical difference between pure risk, which is insurable, and speculative risk, which is not. - How insurers use the underwriting process to combat the effects of adverse selection. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or YouTube Channel: https://www.youtube.com/@Open-exam-prep