Term
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Definition
-the pooling of fortuitous losses by transfer of such risk to insurers, who agree to indemnify insurers for such losses.
-to provide other pecuniary benefits on their occurrence, or to render services connected with the risk |
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Term
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Definition
| the spreading of losses incurred by the few over the entire group, so that in the process, average loss is substituted for actual loss |
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Term
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Definition
| a loss the is unforeseen and unexpected by the insured and occurs as a result of chance |
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Term
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Definition
-means that a pure risk is transferred from the insured to the insurer
-Insurer is typically in a stronger financial position to pay the loss than the insured |
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Term
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Definition
| the insured is restored to his or her approximate financial position prior to the occurrence of the loss |
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Term
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Definition
| Tendency of person with a higher-than-average change of loss to seek insurance at standard rates, which if not controlled by underwriting, results in higher-than-averages loss levels |
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Term
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Definition
| The process of selecting and classifying applicants for insurance |
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Term
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Definition
| Pays death benefit to designated beneficial when insured dies |
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Term
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Definition
| Indemnifies property owners against the loss or damage of real or personal property caused by various perils such as fire, lightning, wind storm, or tornado |
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Term
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Definition
| Covers the insured's legal liability arising out of property damage or bodily injury to others |
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Term
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Definition
| A broad field of insurance that covers whatever is not covered by fire, marine, and life insurance |
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Term
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Definition
| An arrangement by which the primary insurers that initially writes the insurance transfers to another insurers part or all of the potential losses associated with self insurance |
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