Chapter 14

Question 1

Relates to harm or injury to other people or their property because of your actions

Answer 1

Liability risk

Question 2

A risk that presents the chance of loss but no opportunity for gain

Answer 2

Pure risk

Question 3

A risk that you can reduce or eliminate by actions you take

Answer 3

Controllable risk

Question 4

This exchange is the uncertainty of a possible large financial loss for a certain smaller payment

Answer 4

Insurance

Question 5

A company that agrees to take on certain economic risk and to pay for losses if they occur

Answer 5

Insurer

Question 6

The company that buys an insurance policy

Answer 6

Policyholder

Question 7

States the conditions to which the insurance company and the policyholder have agreed

Answer 7

Insurance policy

Question 8

The amount the policyholder must pay for insurance coverage

Answer 8

Premium

Question 9

The policyholders request for payment for a loss that the insurance policy covers

Answer 9

Claim

Question 10

The exclusive right to possess and use property and its profits

Answer 10

Property rights

Question 11

Illegal uses of intellectual property, patents, trademarks, and copyrights.

Answer 11

Counterfeiting

Question 12

The possibility of incuring a loss

Answer 12

Risk