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10 Cards in this Set
- Front
- Back
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3 examples of insurance:
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Life
Health/disability Annuities |
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Define Annuities
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Not life insurance
retirement product sold by insuarnce companies |
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Risk
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the uncertainty of loss
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Peril
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the direct cause of a loss
Fire |
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Hazard
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increases the chances of a loss occurring
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3 types of hazards
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Physical
Moral Morale |
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2 types of risk
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Pure (insurable)
Speculative |
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Risk Pooling
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reduces financial risk among the many insured.
makes predicting losses much easier for insurers |
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Adverse Selection
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when the uninsurable seek to purchase insurance resulting in great losses to the insurers.
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indemnity
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restores an insured to the condition he/she was prior to the loss.
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