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31 Cards in this Set

  • Front
  • Back
risk is
high odds =
low uncertainty
low odds =
low uncertainty
involves losses and gains
speculative risk
involves only the possiblility of loss
pure risk
insurance only addresses
pure risk
don't do the things that expose you to risk
risk avoidance
accept the risk and provide for the losses that might occur
risk retention
transfre risk by getting someone else to pay the losses and reducing the risk by lowering the uncertainty of the losses, only .... does this
it transfers risk
through loss sharing
it reduces risk
through large numbers
the larget the group, the more certain the predictions about the group
the law of large numbers
the event that causes a loss
increase the probability of the peril occuring
protects you from losses to your own property
property insurance
protects you when you are held liable for someone else's losses (their property and /or bodily injury)
liability insurance
the amount of coverage
requirements of the insured
homeowners insurance combines two types of insurance into one policy:
property insurance and liability insurance
the dollar amount is usually specified for property coverage... usually...
80 or 100% of replacement cost
detached buildings is what percentage of property coverage
trees, shrubs, etc is what percentage of property coverage?
liability coverage under homewoner's insurance policies
comprehensive personal up to 100,000; no fault medical payments up to 1,000; no fault property damage for up to 500
homeowner's policy
HO-1(11 named perils), HO-2(18 named perils), HO-3(all perils except those excluded on the dwelling and 17 named perils on personal property), HO-8(older homes)
for renters
For condo owners
Liability coverage under automobile insurance policies covers
bodily injury, and property damage
medical payments protection
protects passengers in your car for bodily injury losses
Physical damage coverage
collision insurance (no-fault protection, covers for actual cash value) and comprehensive coverage (protects from losses due to other perils such as theft, covers for actual cash value)
provides excess coverage over and above homeowners, automobile and professional liability insurance.
umbrella liability insurance
provides higher limits than homeowners insurance
comprehensive personal liability insurance