126 Startups Pitched Their Concepts At EPiC In Hong Kong, However Only 1 Walked Away

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Affordable premium: If the probability of an insured occasion is so high, or the cost of the event so large, that the resulting premium is giant relative to the amount of protection offered, then it isn’t probably that the insurance will be bought, even when on provide. Furthermore, because the accounting career formally acknowledges in financial accounting standards, the premium cannot be so massive that there is not an affordable likelihood of a big loss to the insurer. If there isn’t any such chance of loss, then the transaction might have the type of insurance, however not the substance (see the U.S. Monetary Accounting Requirements Board pronouncement quantity 113: “Accounting and Reporting for Reinsurance of Short-Period and Long-Duration Contracts”).

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Accidental loss: The occasion that constitutes the set off of a claim ought to be fortuitous, or a minimum of outdoors the management of the beneficiary of the insurance. The loss must be pure, in the sense that it outcomes from an occasion for which there’s solely the opportunity for cost. Events that contain speculative parts reminiscent of abnormal business dangers and even buying a lottery ticket are typically not considered insurable.

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