Compound Probability
Definition of "Compound probability"
Theory that the probability that two independent events will occur is equal to the probability that one independent event will occur times the probability that a second independent event will occur. For example, on a single toss of two dimes (each dime having a head and a tail), the probability that both will land on their tails is equal to 1/4 (1/2x1/2)
Popular Insurance Terms
Trading of stock to enhance portfolio performance and reduce taxes. This practice is followed when the investor has accumulated losses on stocks and sells these stocks in order to use the ...
Property coverage for a builder of ships until possession passes to the owners. Protects against pre-launch and post-launch perils. Coverage can be purchased on an all risks basis subject ...
All sources of cash flow, usually stated on an annual basis. ...
services provided in an employee benefit plan such as a pension plan. An employer provides the clerical staff to operate the plan, in effect acting as custodian. The trustee provides ...
Investment risk associated with the changes in government policies that may have a dramatic effect on financial instruments. For example, if federal legislation is passed removing the ...
Combination of property insurance on the hull of an airplane and liability insurance in the following manner: property coverage provided on an ALL RISKS basis or on a specified perils ...
Use of a life insurance policy dividend by the owner of a participating policy. Here the policy dividend is left with the insurance company to accumulate at a guaranteed minimum interest ...
Specific time at which the insurance policy coverage begins and ends. ...
Coverage for all kinds of personal property whether inside or outside an insured's (home) to include jewelry, musical instruments, cameras, fine arts, and precious stones. The insurance ...
Have a question or comment?
We're here to help.