Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
18 Cards in this Set
- Front
- Back
Risk
|
Is the chance of financial loss from perils to people or property.
|
|
Insurance
|
Is a method for spreading individual risk among a large group of people to make losses more affordable for all.
|
|
Insurer
|
Is a business that agrees to pay the cost of potential future losses in exchange for regular fee payments.
|
|
Policy
|
A written insurance contract
|
|
Premium
|
Under the policy, the insurer agrees to assume an identified risk for a fee ( the premium) usually paid at regular intervals by the owener of the policy the policyholder.
|
|
Policyholder
|
The owner of the policy
|
|
Indemnification
|
Means putting the policyholder back in the same financial condition he or she was in before the loss occurred.
|
|
Probability
|
Is the mathematics of chance and the root of indemnification.
|
|
Personal Risks
|
Are the chances of loss involving your income and standard of living.
|
|
Propery Risks
|
The chance of loss or harm to personal or real propery.
|
|
Liability Risks
|
Are the chances of loss that may occur when your errors or inappropriate actions result in bodily injury to someone else or damage to somone else's property.
|
|
Pure Risk
|
Is a chance of loss with no chance for gain.
|
|
Speculative Risk
|
Is a risk that may result in either gain or loss.
|
|
Insurable Interest
|
Is any financial interest in life or property such that, if the life or propery were lost or harmed, the insured would suffer financially.
|
|
Risk Management
|
Is an organized strategy for controlling financial loss from pure risks.
|
|
Risk Avoidance
|
You would eliminate the chance for loss by not doing the activity that could result in the loss.
|
|
Risk Reduction
|
You would take measures to lessen the frequency or severity of losses that may occur.
|
|
Risk Assumption
|
You would establish a monetary fund to cover the cost of a loss.
|