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8 Cards in this Set
- Front
- Back
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Types of hazard |
Physical: poor health Moral: dishonesty, drugs, alcohol abuse Morale:careless attitude, reckless driving , jumping off cliff, stealing , racing motorcycle, indifference to loss. Morale:careless attitude, reckless driving , jumping off cliff, stealing , racing motorcycle, indifference to loss. |
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Loss |
Unintentional decrease in value of asset due to peril. |
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Hazard |
Condition or situation that increase the chance of loss. |
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Peril |
An immediate specific event which causes loss like earthquake or tornado. Perils can also b le the accident itself. |
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Risk |
The potential for loss |
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Speculative Risk |
Is a risk presents both the chance of risk and gain. Gambling is an example. Speculative risk are not insurable |
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Pure risk |
Is the only insurable risk and present a potential for loss only, such as injury, illness, and death. |
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Elements of insurable risk |
Loss must be die to chance Loss must be definite and measurable Loss must be predictable Loss cannot be catastrophic (1 trillion dollars is not reasonable) Loss exposure to be insured must be large (common enough to ensure a large sample size ) |
