Introduction Insurance EXAM GRADED A LATEST VERSION

the uncertainty or possibility of financial loss. There are two kinds: - CORRECT ANSWER risk - speculative and pure risk chance of financial loss with possibility of gain or loss. this is not insurable. Ex: gambling - CORRECT ANSWER speculative risk chance of financial loss with no possibility of gain. the only potential outcome is loss - CORRECT ANSWER pure risk unintended unforeseen damage or injury measurable in financial terms - CORRECT ANSWER loss the actual cause of a loss. the reason the loss occurred Ex: tornado - wind - CORRECT ANSWER peril anything that increases the liklihood (frequency) of a loss occurring or the severity of a loss. - CORRECT ANSWER hazard what are the 3 types of hazard - CORRECT ANSWER 1) physical hazard: arises form material or structural