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18 Cards in this Set

  • Front
  • Back
Risk
Is the chance of financial loss from perils to people or property.
Insurance
Is a method for spreading individual risk among a large group of people to make losses more affordable for all.
Insurer
Is a business that agrees to pay the cost of potential future losses in exchange for regular fee payments.
Policy
A written insurance contract
Premium
Under the policy, the insurer agrees to assume an identified risk for a fee ( the premium) usually paid at regular intervals by the owener of the policy the policyholder.
Policyholder
The owner of the policy
Indemnification
Means putting the policyholder back in the same financial condition he or she was in before the loss occurred.
Probability
Is the mathematics of chance and the root of indemnification.
Personal Risks
Are the chances of loss involving your income and standard of living.
Propery Risks
The chance of loss or harm to personal or real propery.
Liability Risks
Are the chances of loss that may occur when your errors or inappropriate actions result in bodily injury to someone else or damage to somone else's property.
Pure Risk
Is a chance of loss with no chance for gain.
Speculative Risk
Is a risk that may result in either gain or loss.
Insurable Interest
Is any financial interest in life or property such that, if the life or propery were lost or harmed, the insured would suffer financially.
Risk Management
Is an organized strategy for controlling financial loss from pure risks.
Risk Avoidance
You would eliminate the chance for loss by not doing the activity that could result in the loss.
Risk Reduction
You would take measures to lessen the frequency or severity of losses that may occur.
Risk Assumption
You would establish a monetary fund to cover the cost of a loss.