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
Specifications dealing with exclusions, policy requirements, cancellations and related matters. Perils Most policies exclude enemy attack, invasions, insurrection, rebellion, revolution, ...
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Amendment to a will that adds or modifies clauses in that will, such as adding an additional beneficiary or piece of property. ...
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Term or whole life policy with a face value that increases over time. ...
Describing a risk whose probability of loss is less than the norm or the standard expectation of loss for that underwriting classification. ...
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