Insurance

Front 1

Insurance

Back 1

Transfer of a risk from a person or a business to an answer

Front 2

Risk

Back 2

Uncertainty, possibility of loss

Front 3

Kinds of Risks

Back 3

Speculative Risk and Pure Risks

Front 4

Speculative Risk

Back 4

Chance of a loss or gain, not insuranle

Hint 4

Las Vegas

Front 5

Pure Risk

Back 5

Chance of loss only; insurance companies will insure

Front 6

Exposure

Back 6

Possibility a loss will ocurr

Hint 6

Auto accident, lost luggage, house fire, employee hurt on the job

Front 7

Peril

Back 7

The cause of the loss

Hint 7

House burns down ____ is the fire

Front 8

Loss

Back 8

(1)Unintended, unforeseen damage to property (2) injury (3) amount paid

Front 9

Direct loss

Back 9

Physical Lost Property with no intervening cause

Front 10

Indirect Loss

Back 10

Consequential loss as a result from direct loss

Hint 10

Loss of rental income due to house fire, which cause a loss of profit for the landlord

Front 11

Hazard

Back 11

Anything that increases the chance that a loss will occur

Front 12

Physical hazard

Back 12

Physically identifiable factors that increase the chance of loss

Hint 12

A wet floor sign on a wet floor

Front 13

Moral Hazzard

Back 13

Dishonesty that intentionally causes a loss is acceptable

Hint 13

Lying

Front 14

Morale Hazards

Back 14

State of mind or careless attitude

Hint 14

Not giving two *****

Front 15

Methods of handling risks

Back 15

Sharing, transfer, avoidance, retention, reduction

Hint 15

STARR

Front 16

Risk Sharing

Back 16

Two or more individuals or businesses agree to pay a portion of any loss incurred by any member of the group

Hint 16

Stockholders

Front 17

Risk Transfer

Back 17

The insurance company agrees to pay if the customer has a loss

Front 18

Risk Avoidance

Back 18

Eliminating a particular risk by not engaging in a certain activity

Front 19

Risk Retention

Back 19

The individual or business will pay for the loss if it occurs, or a portion of the Lost via a deductible

Front 20

Risk Reduction

Back 20

Lessening the chance that a loss will occur, or lessening the extent of a loss if it occurs

Front 21

Parties to a insurance contract

Back 21

Agreement between the insured and the insurer

1st party-insured (customer)

2nd Party- insurer ( insurance company)

Front 22

Law of Large Numbers

Back 22

The larger the group, the more accurately losses can be predicted

Front 23

Law of large numbers

Back 23

The larger the group, more accurately losses can be predicted

Front 24

Elements of Insuranble Risk

Back 24

CANHAM

Front 25

Calcuable Risk

Back 25

Premiums must be a calculable based upon prior loss statistics for that particular risk in order predict predict future losses

Front 26

Affordable Risk

Back 26

The premium for transferring the rest should be affordable for the average customer

Front 27

Non-catastrophic Risk

Back 27

The rest must be non-catastrophic for the insurance company

Front 28

Homogeneous Risk

Back 28

The risk must be similar in nature so the same factors affect the chance for loss

Front 29

Accidental Risk

Back 29

The Lost must have been caused due to chance (accident)

Front 30

Measurable Risk

Back 30

A definite (time and place) and measurable loss means that proof of loss must be established with numbers and dollar amounts, not just casual references

Front 31

Adverse Selection

Back 31

Tendency for high-risk individuals to get and keep insurance as compared to individuals that represent an average level of risk

Hint 31

High Risk = higher rate to insure or refusal

Front 32

Reinsurance

Back 32

Insurance for insurers; transfers risk from one insurer to another insurer

Front 33

Ceding Insurer

Back 33

The company reducing its risk

Front 34

Reinsurer

Back 34

The company assuming the risk

Front 35

Stock Insurer

Back 35

Is a business formed as a corporation and owned by its stockholders (aka shareholders)

Hint 35

Front 36

Mutal Insurers

Back 36

Does not have stock or stockholders, it is owned by its policyholders ( customers) also known as policyholders

Hint 36

Front 37

Fraternal Benefit Societies

Back 37

Exist for the benefit of their members and offer insurance as one of the benefits of membership

Hint 37

Front 38

Reciprocal Insurers

Back 38

Unincorporated groups of people that agree to ensure each other's losses under a contract, the members are also known as subscribers

Hint 38

Front 39

Lloyd's Associations

Back 39

not insurance companies, rather they provide a hub for the exchange of information among member Underwriters who actually transact the business of insurance

Hint 39

Front 40

Risk Retention Group

Back 40

Insurer formed for the sole purpose of providing liability insurance for the policyholder. The policy holders must all be members of the same type of business. It is regulated by the state where they are headquartered and could operate in other states as well

Hint 40

Front 41

Risk Purchasing Groups

Back 41

Formed for the sole purpose of obtaining liability insurance for its members

Hint 41

Front 42

Self-insurers

Back 42

Means of retaining, rather than transferring, risk

Hint 42

Front 43

Government Insurers

Back 43

The government can step in an provide insurance that not ordinarily available from private insurers

Hint 43

Front 44

Domestic Insurers

Back 44

The state in which the insurer was formed (chartered or Incorporated) and usually headquarted