Term
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Definition
| A risk that involves three possible outcomes: loss, gain, or no change. |
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Term
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Definition
| A risk that involves no possibility of gain. |
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Term
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Definition
| The practice of identifying risk, assessing risk, and dealing with risk. |
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Term
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Definition
| A risk management technique by which a person or business accepts financial responsibility for losses associated with specific risks. |
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Term
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Definition
| A written document that contains the terms of the contractual agreement between the insurance company and the owner of the policy. |
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Term
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Definition
| A specified amount of money that an insurance company agrees to pay when a specific loss occurs. |
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Term
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Definition
| A specified amount of money that the insurer receives in exchange for its promise to provide a policy benefit when a specific loss occurs. |
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Term
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Definition
| types of economic losses that fall under property damage... examples being damage to your automobile, home, or personal belongings due to accident, theft, fore, or natural disaster. |
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Term
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Definition
| economic losses that arise from your being held responsible for harming others or their property. |
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Term
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Definition
| this includes the risk of economic loss associated with death, poor health, and outliving one's savings. |
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Term
| Characteristics of Insurable Risks |
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Definition
1) the loss must occur by chance
2) the loss must be definite
3) the loss must be significant
4) the loss rate must be predictable
5) the loss must not be catastrophic to the insurer |
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Term
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Definition
| An insurance policy under which the amount of the policy benefit payable for a covered loss is based on the actual amount of the resulting financial loss, as determined at the time of loss or until they have reached the maximum amount stated on the contract. |
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Term
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Definition
| A request for a payment under the terms of an insurance policy. |
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Term
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Definition
| An insurance policy that specifies the amount of the benefit that will be payable when a covered loss occurs, regardless of the actual amount of the loss that was incurred. |
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Term
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Definition
| The amount payable under a life insurance policy of the insured person dies while the policy is in force. |
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Term
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Definition
| The rate at which covered losses are expected to occur in a specified group of insureds. |
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Term
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Definition
| The likelihood that a given event will occur in the future. |
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Term
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Definition
| Charts that display the incidence of death, by age, among a given group of people. |
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Term
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Definition
| Charts that display the incidence of a sickness and accidents, by age, among a given group of people. |
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Term
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Definition
| A type of insurance that one insurance company purchases from another insurance company in order to transfer risks on insurance policies that the ceding company issued. |
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Term
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Definition
| To obtain reinsurance on insurance policies by transferring all or part of the risk to a reinsurer. |
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Term
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Definition
| The max amount of insurance that an insurer is willing to carry at its own risk on any one life |
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Term
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Definition
| A transaction in which a reinsurer cedes a portion of its risk to another reinsurer. |
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Term
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Definition
| The person or business that applies for an insurance policy. |
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Term
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Definition
| The person or business that owns an insurance policy. |
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Term
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Definition
| The person whose life or health is insured ender and insurance policy. |
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Term
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Definition
| An insurance policy that one person purchases on the life of another person. |
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Term
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Definition
| The person or party that the owner of an insurance policy names to receive the policy benefit if the event insured against occurs. |
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Term
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Definition
| The likelihood that a policy owner or beneficiary of an insurance policy will suffer a genuine loss or detriment if the event insured against occurs. |
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Term
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Definition
| The tendency of individuals who believe they have a greater-than-average likelihood of loss to seek insurance protection to a greater extent than those who do not believe that have an average or less than average likelihood of loss. (exp: a case where someone knowingly buys a small amount of insurance, but still expects full coverage on claims less then the policy limit.) |
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Term
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Definition
| the process of identifying and classifying the degree of risk represented by a proposed insured. |
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Term
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Definition
| A physical characteristic that may increase the likelihood of loss. |
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Term
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Definition
| The likelihood that a person involved in an insurance transaction may act dishonestly in that transaction. |
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Term
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Definition
| The risk category that is composed of proposed insureds who have a likelihood of loss that is not significantly greater than the average. |
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Term
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Definition
| The risk category that is composed of proposed insureds who have a significantly greater-than-average likelihood of loss. |
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Term
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Definition
| The risk category that is composed of proposed insureds who are considered to present a risk that is too great for the insurer to cover. |
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Term
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Definition
| The risk category that is composed of proposed insureds who present a significantly less-than-average likelihood of loss. |
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Term
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Definition
| A business that is owned and operated by one individual. |
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Term
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Definition
| A business that is owned by two or more people who are known as the partners. |
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Term
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Definition
| A legal entity, separate from its owners, that is created by the authority of a government and continues beyond the death of any or all of its owners. |
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Term
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Definition
| An insurance company that is owned by people who purchase stock in the corporation. |
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Term
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Definition
| An insurance company that is owned by its policyowners. |
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Term
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Definition
| The headquarters of an insurance company, where all the company's executive offices are usually located. |
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Term
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Definition
| An insurance company office that provides many of the same functions and operations as the company's home office but is geographically nearer to the market it serves and generally reports to the home office. |
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Term
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Definition
| An insurance company's local sales office. |
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Term
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Definition
| An organization that channels funds through the economy by accepting the surplus money of savers and supplying that money to borrowers, who pay to use the money. |
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Term
| Financial Services Industry |
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Definition
| The financial institutions that help consumers and business organizations save, borrow, invest, and otherwise manage money. |
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Term
| Individual Insurance Policy |
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Definition
| An insurance policy that is issued to insure the life or health of a named person or persons. |
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Term
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Definition
| An insurance policy that is issued to an organization that is purchasing insurance coverage for a specific group of people. |
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Term
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Definition
| A policy under which the insurance company promises to pay a benefit upon the death of the person who is insured. |
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Term
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Definition
| This provides a death benefit if the insured dies during a specified period. |
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Term
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Definition
| This provides life insurance coverage throughout the insured's lifetime and also provides a savings element. |
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Term
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Definition
| This provides a policy benefit that is paid either when the insured dies or on a stated date if the insured lives until then. Like term insurance, it provides life insurance coverage for only a stated period of time. And like permanent life insurance, it provides a savings element. |
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Term
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Definition
1) A series of periodic payments
2) A policy under which an insurance company promises to make a series of periodic payments to a named individual in exchange for a premium or a series of premiums. |
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Term
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Definition
| A type of insurance that provides protection against the risk of financial loss resulting from the insured person's sickness, accidental injury, or disability. |
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Term
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Definition
| A type of health insurance that provides benefits to pay for the treatment of an insured's illnesses and injuries. |
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Term
| Disability Income Coverage |
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Definition
| A type of health insurance that provides income replacement benefits to an insured who is unable to work because of sickness or injury. |
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Term
| Fraternal Benefit Society |
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Definition
| An organization formed to provide social, as well as insurance, benefits to its members. |
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Term
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Definition
| Where companies begin as stock companies and later convert into mutual companies. (An advantage of this would be that it cannot be bought by another company since a mutual company have no stock to sell.) |
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Term
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Definition
| When a mutual insurer wishes to demutualize as a stock company. A reason they might do this is because they can then more easily raise operating funds because it can sell shares of stock. |
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Term
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Definition
| The ability of the insurer to sue the at fault driver in a tort jurisdiction and recover the costs they have paid for the injured party's damage. |
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Term
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Definition
| An at-fault system where the injured party sues the insured and proves that the insured was at fault in the accident. |
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Term
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Definition
| A system where the injured first looks to their own insurer for defined "no fault" benefits for any minor accidents. If the injuries exceed a defined verbal threshold, the injured can then pursue a tort system. |
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Term
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Definition
| Someone who is insured but at lower liability limits then purchased by the policyholder or required by the law. |
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Term
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Definition
| A legal right of the insurer under an auto insurance policy where if a collision claim requires paying full value of a vehicle, the ownership rights to any remaining value in the vehicle accrue to the insurer. |
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Term
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Definition
| When coverage is provided for all perils except those specifically excluded. (Excluded perils include war, damage due to wear and tear, road damage to tires, radioactive contamination, damage from discharge of a nuclear weapon, and collision) |
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Term
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Definition
| If the policy only covers perils that are specifically listed. |
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Term
| Summarize Homeowner's Insurance Section I. [COVERAGE A] |
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Definition
| Provides protection against damage to your house that's dwelling, (this coverage is known as the "dwelling insurance coverage,") on named perils or an all risks basis up to a set limit. Covered perils vary by geographic location & the enviornment. |
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Term
| What are the purposes of deductibles? |
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Definition
| Deductibles are a set amount of money that the policy holder has to pay on their own, before making a claim. This prevents the policy holders from making small claims which are both administratively expensive and uneconomical to the insured. |
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Term
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Definition
| This is a concept where individuals who are afraid and uncertain for a particular economic loss transfer their risk to an insurance company. |
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Term
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Definition
| The person whose life or health is insured under a policy. |
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Term
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Definition
| the insurance company that is paid premiums to provide the policy benefits, if any are to arise. |
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Term
| Summarize Homeowner's Insurance Section I. [COVERAGE B] |
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Definition
| this provides a specified amount of insurance on a garage & other structures on the premises (separate from the primary dwelling... the garage and other structures usually equal 10% of the dwelling coverage amount). |
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Term
| Summarize Homeowner's Insurance Section I. [COVERAGE C] |
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Definition
| This insures the actual cash value of the policyholder's personal property and contents of the house (up to a defined policy limit, usually 40% or 50%) for the covered perils. Coverage C also extends to any property the insured has borrowed and has in possession. The coverage also applies when personal items are outside of the home. |
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Term
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Definition
| A limit that the insurer will cover for certain losses (such as $1000 limit of coverage for jewelry, silverware, or art.) |
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Term
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Definition
| If a homeowner wants full insurance on the things that have "inside limits" then a schedule of the items to be insured (with their appraised values) will be attached to the policy and an extra premium will be charged for the scheduled items. |
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Term
| Summarize Homeowner's Insurance Section I. [COVERAGE D] |
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Definition
| This covers the fair rental value for alternative accommodation while your dwelling (home) is being repaired because of damage caused by a covered peril. This coverage also compensates for any loss of rental income from a part of the house that is lost while the damage is being repaired. (The limit for coverage D is usually 20% of the coverage on the dwelling.) |
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Term
| Section II of the homeowners policy |
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Definition
| Tis section provides liability coverage to the policyholder. |
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Term
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Definition
| This is a policy for people who rent rather then own their own homes. The tenants package covers most of the items in a homeowners policy, but with modifications. |
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Term
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Definition
| It's an example of an early intro to "no-fault" insurance where workers give up their rights to sue their employers in the cases of occupational accidents (or sickness) in return of no-fault benefits on a scheduled basis. |
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Term
| Objectives of Workers Compensation |
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Definition
1) Broad coverage of workers for any occupational injury/sickness.
2) Substantial protection against loss of income.
3) Medical care and rehab services provided.
4) Ecouragement of safety.
5) An effective delivery system for benefits and services. |
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