key concept Flashcards
risk with a chance of loss, no financial gain, but insurable
pure
types of risk
pure speculative
peril
cause of loss
transfer of loss; protection
insurance
insurance =
transfer of risk
cause of loss
peril
pure risk
chance of loss only no financial gain insurable
individual characteristics that increases the chances of the cause of loss
physical hazards
relationship of perils to loss
hazards (drinking) to peril (car accident) to loss (death) to insurance (to beneficiary)
types of hazards
physical moral morale
risk with a chance of loss or gain, financial gain, not insurable
speculative risk
moral hazards
tendencies toward increased risk; dishonest on application
tendencies toward increased risk
moral hazards
physical hazards
individual characteristics that increases the chances of the cause of loss; smoking
something that increases probability of having a loss
hazard
transfer of risk =
insurance
hazard
something that increases probability of having a loss
morale hazards
state of mind that causes indifference towards loss; drinking and driving because who cares I’m covered
state of mind that causes indifference towards loss
morale hazards
reduction of value; basis for a claim
loss
speculative risk
chance of loss or gain; gamble not insurable
loss
reduction of value; basis for a claim
