chapter one Flashcards
1
Q
encompasses the chance of loss arising from one’s own bodily injury or loss of life or loss of income as a consequence of physical disability, old age or unemployment
A
personal risk
2
Q
an event which may cause a loss to occur
A
peril
3
Q
a condition which may cause a peril to occur or make the loss more severe
A
hazard
4
Q
price of a unit of insureance
A
rate
5
Q
price for a full year of insurance
A
premium
6
Q
what are the 6 functions of insurance
A
spread of risk aid to security loss prevention source of employment aid to credit source for capital
7
Q
what are the insured perils
A
Lightning Impact by land or air vehicle Violence Explosion Riot Smoke Water Windstorm Falling object
