What Does Risk Equivalent Mean?

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What does Risk Equivalent mean? Read on to discover the definition & meaning of the term Risk Equivalent - to help you better understand the language used in insurance policies.

Risk Equivalent

Risk Equivalent

Sum of money that represents a probable loss from a particular risk. In insurance industry (where it is called 'actuarial equivalent') it is computed on the basis of the expectation of loss and the compensation (benefits) to be paid upon its occurrence.

We hope the you have a better understanding of the meaning of Risk Equivalent.

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