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29 Cards in this Set
- Front
- Back
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1.3 Sales Trilogy
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The elements necessary to the sale of any product:
1) product knowledge 2) market knowledge, and 3) selling skills |
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1.4 Producer
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One who markets insurance and related services.
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1.4 Agent
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The authorized representative of an insurance company.
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1.4 Broker
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The authorized representative of an insured.
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1.4 Marketing
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Finding, identifying the needs of, selling to, and providing service to insureds.
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1.4 Markets
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Homogeneous groups of insureds or potential insureds (people with money to buy products and services from the producer).
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1.4 Direct loss
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The reduction in the value of an asset.
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1.4 Indirect loss
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The financial consequences of a reduction in the value of an asset.
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1.5 Risk
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The chance of financial loss.
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1.5 Fundamental risk
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A risk of loss to which all members of a society, or at least a large number of people, are exposed in a single occurrence.
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1.5 Particular risk
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A risk of loss to which relatively few members of a society are exposed in a singe occurrence.
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1.5 Speculative risk
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Offers the chance of financial loss and also the opportunity for gain.
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1.6 Loss frequency
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The number of times loss occurs over a specific period of time.
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1.6 Loss severity
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The amount or size of a single loss.
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1.7 Law of large numbers
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The larger the number of similar units exposed to similar loss, the more accurate the loss predictions based on that data will be.
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1.7 Peril
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A cause of loss
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1.8 Hazard
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Anything that increases the frequency or severity of a loss.
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1.8 Physical hazard
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One that can be seen, felt, or touched.
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1.8 Moral hazard
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A trait of the insured’s character that tends to increase the probability or severity of loss.
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1.9 Morale hazard
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A hazard that stems from the insured’s attitude of “Who cares? It’s insured.”
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1.9 Legal hazard
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A hazard that can increase the severity of loss because of the involvement of the legal system and its associated costs and can increase the frequency of loss because of the escalating number of suits filed.
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1.10 Indemnity
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Restoring the insured to the same financial position held immediately before a loss.
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1.10 Insurable interest
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The financial interest an entity has in the continued existence of the subject of insurance.
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1.11 Independent exposures
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Group of many persons purchasing insurance independently and not affected by the losses of others.
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1.12 Similar exposures
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Exposures that are homogeneous.
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1.12 Definite
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A loss must be defined by what caused it, where and when it happened, and what its value is.
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1.12 Calculable
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The loss must be able to be calculated.
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1.12 Accidental
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A random event, neither intended nor expected by the insured.
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1.13 Risk management
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A process to manage the pure risks of an individual or an organization.
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