Chapter 8 Flashcards
What does avoiding risk entail?
As an example, you can avoid financial loss from a property by simply not owning any property
What can you do to reduce risk?
By purchasing a smaller house, you can reduce exposure to financial loss.
Accepting risk example
You can accept risk by not seeking limitations on financial loss. An example would be if have lived in a small town with less cars, the risk of getting into an accident is lower, but you accept that.
Insurance premium
The cost of obtaining insurance
Peril
A hazard or risk you face
Under writers
Employees of an insurance company who calculate the risk of a specific incandescence policy and decide what to charge people
Insurance agent
Represents one or more insurance companies and recommends insurance policies that fit customers needs.
Captive (or exclusive) insurance agent
Works for one particular insurance company
Independent insurance agency
Represents many different insurance companies
Insurance policy
Contract between insurance company and the policy owner
Auto insurance policy
Specifies the coverage provided by the insurance company for a particular individual and their vehicle
Third-party liability
Legal term describes a person who has experienced loss because of the insured
Bodily injury liability coverage
I text you again really associate with injuries you caused others
Property damage liability coverage
Protects against losses that will result in the policy or damages another person’s property is his or her car
Accident benefit coverage
Sure is against the cost of medical care for you and other passengers in your car
Uninsured motorist coverage
In Jersey and Sikasso bodily injury one accident caused by another driver who is not insured
Collision insurance
Insures against costs of damage to your car resulting from an accident it was the driver of your car is at fault
Comprehensive coverage
Insurers you against damage to your car that is caused by a natural or unnatural event such as a fire, theft, explosion, riot, etc.
Deductible
I set dollar amount that you are responsible for paying for any coverage is provided from your insurance
Facility association
Sure is the drivers and able to change insurance with an individual company are able to team coverage they need to operate their vehicles legally
Exclusion
Return caring and insurance contracts are policies that describes items are circumstances that are excluded from your insurance
Factors that affect your auto insurance premium
How you use your vehicle, value of car, repair a record of your car, your location, your driver training, your driving record, your age and sex, and you’re driving distance.
All Perils coverage
Text the home and any other structures on the property against all of his except those are specifically excluded by policy
Named perils coverage
Protects the home and any other structure on the property against only those events name to the policy
Actual cash value policy
Pays you the value of the damage property after considering it’s depreciation
Replacement cost policy
KZ the cost of replacing the damaged property with an item of a similar brand and quality
Home inventory
Contains detailed to ration of all your personal property that can be used in filing a claim
Personal property floater
An extension of the homeowners insurance policy that allows you to itemize your valuables
Tenants insurance
Transposing to protect superstitions within the house condo or apartment that you are renting
What is the first step in risk management ?
To recognize the risks to which you are exposed
What is a personal umbrella liability policy
The supplement to auto at homers insurance provides additional personal liability coverage
