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29 Cards in this Set

  • Front
  • Back
Loss Exposure
Any condition or situation that presents the possibility of a loss.
Law of Large Numbers
A mathematical principle stating that as the number of similar but independent exposure units increases, the relative accuracy of predictions about future outcomes based on these exposures units also increases
Exposure Unit
A measure of the loss exposure assumed by the insurer, used in pricing insurance
Property Loss Exposure
Any condition or situation that presents the possibility that a property loss will happen
Real Property
Land, building, and other structures attached to the land or embedded in it
Personal Property
All tangible or intangible property that is not real property
Net Income
Revenue minus expenses and taxes during a given time period
Net Income Loss
An indirect loss caused by a reduction in revenue, an increase in expenses, or both during a given time period
Liability Loss Exposure
Any condition or situation that presents the possibility of a claim alleging legal responsibility of a person or business for injury or damage suffered by another party
Liability Loss
A claim for monetary damages because of injury to another party or damage to another party's property
Personal Loss Exposure
Any condition or situation that presents the possibility of a financial loss to an individual or a familyby such causes as death, sickness, injuyr, or unemployment
Personnel loss exposure
Any condition or situation that presents the possibility of a financial loss to a business because of the death, disability, retirement, or resignation of key employees
To restore a party who has sustained a loss to the same financial position that party held before the loss ocurred
Fire and allied lines insurance
Insurance that covers direct damage to or loss of insured property
Business income insurance, or business interruption insurance
Insurance that covers, the loss of net income or additional expenses incurred by a business as the result of a covered loss to its property
Crime Insurance
Insurance that covers money, securities, merchandise, and other property from various causes of loss such as burglary, robbery, theft, and employee dishonesty
Ocean Marine Insurance
Insurance that covers ships and their cargo against such causes of loss as fire, lightning, and "perils of the sea"
Inland Marine insurance
Insurance that covers miscellaneous types of property, such as movable property, goods, in domestic transit, and property used in transportation and communication
Auto physical damage insurance
Insurance that covers loss of or damage to specified vehicles from collistion, fire, theft, or other causes
Auto Liability insurance
insurance that covers an insured's legal liability arising out of the ownership, maintenance, or use of an automobile
commercial general
liablility insurance
Insurance that covers liability loss exposure arising from a business organization's premises and operations, its products, or its completed work
Personal liability insurance
Insurance that provides liability coverage to individuals and families for bodily injury and property damage arising from the insured's personal premises or activities
Professional liability
Insurance that provides liability coverage to professionals for errors and omissions arising out of their professional duties
Whole life insurance
Life insurance that provides lifetime protection, accrues cash value, and has premiums that remain unchanged during the insured's lifetime
Cash Value
The monetary amount, considered to be a form of savings, that accumulates in a whole life insurance policy
Term Insurance
Life insurance that provides coverage for a specified period, such as 10 or 20 years, with no cash value
Universal lif insurance
Insurance that provides life insurance protection and a savings component
Medical insurance
Insurance that covers medical expenses that result from illness or injury
Disability income insurance
A type of health insurance that provides periodic income payments to an insured who is unable to work because of sickness or injury