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From The Glossary »

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Exposure:

This is the possibility of loss. It is criterion used in measuring the extent of a risk assumed by an insurer. From the statistical standpoint of rate calculation for short term insurance, exposure is the product of the amount of insurance at risk and the policy period expressed in years. For example, the exposure in the case of R1 000 payroll policy written for a year is R1 000 x 1, or R1 000; if written for six months, the exposure is R1 000 x ...
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