Terms to know Flashcards
insuring of risks more prone to loss than the average risk
adverse selection
a legal representative of an insurance company
agent/producer
a person applying for insurance
applicant/proposed
conditions that increase the probability of a loss
hazards
types of hazards
physical
moral (tendency toward increased risk)
morale (indifference to loss)
restoring the insured to the condition that existed before loss
indemnity
transfer of risk of loss from an individual to an insurer
insurance
solicitation, negotiations, or effectuation of a contract
insurance transaction
the person covered by the insurance policy
insured
a company that issues an insurance policy
insurer
the larger the number of people with same exposure to loss, the more predictable the actual loss will be
law of large numbers
the cause of loss
peril
the person who has the rights and privileges in the policy
policyowner
uncertainty or chance of a loss
risk
types of risks
pure (insurable)
speculative (uninsurable)
