Risk Stuff & Deceptive Marketing Flashcards
Bait & Switch
advertising a product, but when you go to buy it –> it is not there and another product is offered to you in its place
Low Balling
changing the OG deal or adding conditions but still for the same product
Pure Risk
chance of loss with no possibility of gain
Speculative Risk
could gain or lose
Economic Risk
could gain or lose due to economic conditions
INSURABLE RISK: Personal
chance involing income and standard of living
INSURABLE RISK: Property
chance of loss or harm to personal or real property
INSURABLE RISK: Liability
chance of loss when your actions damage others or their property
Risk Shifting
purchasing insurance to cover the cost of losses caused by damaging events
Risk Avoidance
“this is risky so i’m never going to partake”, eliminating the chance of loss by not doing the activity
Risk Management
organized plan for controlling financial loss from pure risks and insurable risks
Risk Reduction
lowers the chance of loss by taking measures to lessen the frequency or serverity of losses that may occur
Risk Assumption
accepting the consequences of risk & assuming it’ll happen
Deductible
a specific amount of a loss you must pay (the insurance will cover the rest but you have to pay this much for it)
Premium
fee usually paid montly to the insurance company for agreeing to assume a risk
