Types of Risk Risk Management Insurance Terminology Property & Liability Insurance Health and Life Insurance
Chance of loss with no chance of gain
What is Pure risk?
The type of risk that may result in a gain or loss.
What is speculative risk ?
Pure risk faced by a large number of people and the amount of loss can be predicted.
What is insurable risk?
Chance of loss or harm to personal or real property.
What is property risk?
Chance that loss may occur when your actions result in injuries to others or damages to someone else’s property
What is liability risk?
An organized strategy for controlling financial loss from pure and insurable risks.
What is risk management?
The first step in a risk management/assessment strategy.
What is “identify risks” ?
Lowering the chance for loss by not engaging in activities that could result in loss.
What is risk avoidance?
Taking precautions to reduce the chance of loss or severity of loss
What is risk reduction?
Accepting the consequences of risk and the financial burden.
What is risk assumption?
Spreading the risk to protect assets and income.
What is insurance?
A specified amount, that you are responsible for, subtracted from covered losses.
What is a deductible?
Sums of money to be paid for specific types of losses under the terms of the policy.
What are benefits?
A policyholder’s request for reimbursement for a loss under the terms of the insurance policy.
What is a claim?
A written amendment to an insurance policy.
What is an endorsement?
Protection from loss regarding your personal property and liability risks when you rent an apartment or a home.
What is renter’s insurance?
Protects the insured, in the event of a car accident, against claims for bodily injury to another person and damage to another person’s property.
What is liability coverage?
Protects your own car against damages from accidents or vehicle overturning.
What is collision coverage?
Drivers receive reimbursement for their expenses from their own insurer no matter who is responsible for the accident.
What is no-fault insurance?
A personal catastrophe policy which supplements your basic auto and property liability coverage.
What is umbrella liability insurance?
The person named in a life insurance policy to receive benefits.
What is a beneficiary?
The death benefit of a life insurance policy.
What is the face amount?
Health insurance coverage that pays for your hospital room and board and prescription drugs during your hospital stay.
What is basic health insurance?
The most common form of life insurance that only lasts for a specified period of time.
What is term life insurance?
When a family has more than one insurance plan the insurers will share the costs of the claim, not to exceed 100% of allowable expenses.
What is false?
When a family has more than one insurance plan the insurers will share the costs of the claim, not to exceed 100% of allowable expenses.
What is coordination of benefits?
Final Jeopardy The nationwide claims database which details information of claims filed.
Comprehensive Loss Underwriting Exchange