Chapter 21 Flashcards
a __ is a pure risk that is faced by a large # of people
Insurable risk
A ___ is any interest in life or property such that, if it were lost or harmed , the insured would suffer financially
Insurable interest
An organized strategy for controlling financial loss from pure risks is called ??
Risk management
Is a chance of loss with no chance for gain
Pure risk
Is the process of accepting the consequences of risk
Risk assumption
Lowers the chance of loss by taking measures to lessen the frequency or severity of losses that may occur
Risk reduction
Is the specified amount of a loss that the insured must pay
Deductible
Is a state of uncertainty where certain situations may result in loss or another undesirable outcome
Risk
A fee called the ___ is paid at regular intervals by the insurance policy holder
Premium
The process of putting the policyholder back in the same financial condition he or she was in before the loss occured
Indemnification
Making an investment to help offset against loss is called
Hedging
The chance of loss or Harm too personal or real property is called
Property risk
Is the chance of loss involving income and standard of living
Personal risk
Is the chance of loss that may occur when your errors or actions result in injury to others or damages to their property
Liability risk
A blank may result in either gain or loss
Speculative risk
