Ins. 22 Chpt. 1 Pt. 2

Front 1

Loss Control

Back 1

Risk Management technique to reduce the frequency or severity of losses.

Front 2

Avoidance

Back 2

Risk management technique by which an individual or a family avoids a loss exposure by choosing not to own a particular item of property or not to engage in a particular acitivity.

Front 3

Noninsurance Transfer

Back 3

A risk management technique that transfers loss exposures from one party to another party that is not an insurer.

Front 4

Retention

Back 4

A risk management technique that draws on the financial resources of an individual or a family to pay for part or all of the consequences of a particular loss exposure. Its when NI opts to pay for losses out of pocket.

Front 5

Package Policy

Back 5

Policy that includes two or more lines of ins. In personal ins. such as property liability, examples of package policies are the H.O policy and the personal auto policy.