Insurance webce|Complete Questions with A+ Graded Answers

Insurance webce|Complete Questions with A+
Graded Answers
risk
Chance of loss


Pure risk
If it's pure you can insure


Speculative riak
Loss or gain


peril
The cause of loss


Life insurance peril
Death


Health insurance peril
Illness, accidental injury, disability


hazard
Increases chance of peril


Risk Transfer
shifting risk to another party


Underwriting
Assessing an applicant


Law of Large Numbers
Mathematical principle of probability


Moral Hazard
Tendencies that increase risk


Morale Hazard
Attitude or state of mind


Physical Hazard
Characteristics that increase risk


Risk Avoidance

, Strategy to deal with risk


Risk Reduction
Reduce exposure to risk


Risk Retention
Choosing to use existing assets to pay for loss


Deductibles
A stated sun of money that the insured must pay


risk sharing
Allocating ownership of a part of the risk to another party


Risk Transfer
Transferring risk to a third party


insurable risk
If he or she meets certain criteria


mortality
Death


Morbidity
Ilness


Adverse selecton
The tendency of persons at greater risk of loss to seek out and maintain insurance


Loss Exposure
The extent to which an insurer is subject to a possible loss


Commercial Insurance companies
Stock & mutual insurance companies


Stock Insurance Company
A type of insurance company owned by stockholders.


Mutual Insurance Company
A type of insurance company owned by its policyholders.


Fraternal benefit
Non- profit