ender.
Unlike mortgage-lending, insurance is a far more complicated affair, involving as it does the concept of "risk. The term "risk" has been defined in many different ways by economists, insurance scholars, and others[:] measurable uncertainty . . . objectified uncertainty regarding the occurrence of an undesirable event . . . a combination of hazards measured by probability. For this paper, risk is uncertainty of loss. As such, it is a psychological phenomenon that is meaningful only in terms of human reactions and experiences (Denenberg, 1964, p. 4).
Insurance is an ironic form of gambling on fate: the seller of insurance bets that the buyer will not have bad luck - in health, auto accident, home security, and so forth - while the buyer is risking a portion of income in the belief that such ill fortune will eventually occur. There are certain risks that are greater than others. An airplane carrying relief supplies into Sarajevo is at greater risk than a commuter jet from Denver to Omaha. A football player will probably need medi
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