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