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27 Cards in this Set

  • Front
  • Back
the uncertainty of injury or loss
the type of risk that has the possibility of gain as well as loss
speculative risk
the type of risk that has a threat of loss without the possibility of gain
pure risk
a contract in which a firm, for a fee, agrees to pay another individual or firm compensation for losses
a risk that meets a number of requirements
insurable risk
the law that states that seemingly random events will follow predictable patterns if enough events are observerd
law of large numbers
a stake held by someone such that a direct financial loss will result if some event occurs
insurable interest
a loss that is accidental or unexpected
fortuitous loss
insurance that pays for damage to or destruction of property resulting from various acts such as fire of theft
property insurance
insurance that protects against financial losses to others for acts for which you were responsible
liabilitiy insurance
insurance that protects peopel againt financial losses due to illness or accident
health insurance
insurance that provides payments whne the insured is unable to work due to illness or injury
life insurance
the payments the insured person makes for insurance protection
insurance premium
the process of determining whom to insure and what yo charge
a legally binding contract between the policyholder and the insurance company
insurance policy
the financial responsibility one person has to another in a particular situation
the failure to exercise the necessary degree of care to protect others from harm
the action any responsible person would take when faced with a similar situation
reasonable care
the doctrine holding a person financially responsible for an action even if her or she was not directly at fault
strict liability
the doctrine extending the responsibility for avoiding negligence to the actions of other people
vicarious liability
a condition that exposes your home to the risk of damage or destruction
a type of homeowners insurance coverage that will pay the entire cost to repair or replace a home
guaranteed full replacement coverage
a relatively new type of homeowners insurance that pays the amount stated on the policy plus an additional 20 to 25 percent. it has begun to replace the guaranteed replacement coverage.
extended replacement coverage
hoe mchy ou pay out of pcket before insurance coverage begins
policies that provide protection for certain valuable types of property
floater policies
insurance jargon for paying the full depreciated value of a vehicle envolved in an accident
state mandated pool of its high-risk drivers- insurance companies provide coverage on a rotating basis
assigned risk pool