FIN 301 - Ch. 1

Any condition or situation that presents a possibility of loss, whether or not an actual loss occurs

The process of making and implementing decisions that will minimize the adverse effects of accidental losses on an organization

A risk control technique that reduces the frequency of a particular loss

A risk control technique that reduces the severity of a particular loss

A fundamental measure of the loss exposure assumed by an insurer

One of the two main sectors of the insurance industry, encompassing numerous types of insurance, most of which cover the financial consequences of damage to one's own property or legal liability to others

One of the two main sectors of the insurance industry, encompassing numerous types of insurance that cover the financial consequences of death, injury, or sickness

An obligation to act in complete honesty and to disclose all relevant facts

Any contract in which one party must either accept the agreement as written by the other party or reject it

A contract in which the insurer agrees, in the event of a covered loss to pay an amount directly related to the amount directly related to the amount of the loss

A single document that contains all the agreements between the insured and the insurer and that forms a complete insurance policy

An insurance policy that consists of several different documents, none of which by itself forms a complete policy

Any type of insurance that indemnifies an insured who suffers a financial loss because property has been lost, stolen, damaged, or destroyed

Insurance that covers losses resulting from the insured's liability to others

Policy that covers most of the property and liability loss exposures that arise out of residential property ownership and occupancy, as well as property and liability loss exposures that individuals and families may have while they are away from their residences

Coverage for damages, plus costs of any defense, related to a claim or suit brought against the insured that resulted from bodily injury or property damage caused by an occurrence covered under the policy

An insurance policy that covers an individual or a family against loss exposures arising out of the ownership, maintenance, or use of automobiles

Coverage for direct and accidental loss or damage to a covered auto by any peril except collision or overturn or a peril specifically excluded

An insurance policy that covers an individual's or a family's loss exposures arising out of the ownership, maintenance, or use of watercraft used principally for recreation or personal transportation purposes

A liability policy that provides excess coverage above underlying policies and may also provide coverage not available in the underlying policies, subject to a self-insured retention

Coverage that protects the insured from damages owed because of legal liability to another party. For auto policies,it protects insureds against liability arising out of the ownership or operation of automobiles

Life insurance that proves coverage for a specified period, such as ten or twenty years, with no cash value

Coverage until death

Insurance that pays for extended medical care or care received in a nursing home, hospital, or home

A type of life insurance policy or contract that makes periodic payments to the recipient for a fixed period or for life in exchange for a specified premium

Policy that covers two or more lines of business by combining ISO's commercial lines coverage parts

A package policy that combines most of the property and liability coverages needed by small and medium-sized businesses

Insurance that covers a business or a not-for-profit organization against loss exposures arising out of the ownership, maintenance, or use of automobiles

Coverage for a damage to or theft of a covered auto that can include both collision coverage (comprehensive) coverage

Insurance that covers commercial buildings and their contents against various types of property loss

Insurance that covers vessels and their cargoes, including various vessel-related liability exposures

Insurance that covers many different classes or property that typically involve an element of transportation

Insurance that covers (1) money and securities against numerous perils (not limited to crime perils) and (2) property other than money and securities against crime perils, such as employee theft, robbery, theft by outsiders, and extortion

Insurance that covers many of the common liability loss exposures faced by an organization, including its premises, operations, and products

Insurance that covers persons engaged in various occupations against liability resulting from their rendering or failing to render professional services

Insurance that provides coverage for benefits an employer is obligated to pay under workers compensation laws