Term
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Definition
| Insurance is the transfer of risk from one party to another through legal contract or the transfer of risk through the pooling or accumulation of funds. |
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Term
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Definition
| Restoring an individual to the same or a similar financial position in which the existed prior to the loss. |
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Term
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Definition
| Uncertaintity or chance of financial loss. |
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Term
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Definition
| Involves the chance of loss only, Pure Risk is the only type of risk that is insurable. |
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Term
| Definition of Speculative Risk |
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Definition
| Risk which involves an opportunity for gain that could result in loss. Example of Speculative Risk might be gambling. |
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Term
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Definition
| Peril is the cause of a loss. |
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Term
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Definition
| Condition present that increases the chance of a loss occuring. |
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Term
| What are the 3 types of Hazards? |
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Definition
| Physical, Morale and Moral. |
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Term
| What is a Physical Hazard? |
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Definition
| Physical condition that increases chance of loss. Examples would be slippery floor, icy steps, faulty wiring, etc... |
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Term
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Definition
| Dishonest actions by policy owner/insured. |
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Term
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Definition
| Careless action such as driving under the influence, apathetic attitude, etc.. |
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