Term
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Definition
| Any situation or circumstance in which a loss is possible, regardless of whether a loss occurs. |
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Term
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Definition
| Relative variation of actual loss from expected loss. |
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Term
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Definition
| Uncertainty based on a person's mental condition or state of mind. |
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Term
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Definition
| Probability that an event will occur. |
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Term
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Definition
| Individual's personal estimate of the chance of loss. |
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Term
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Definition
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Term
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Definition
| Condition that creates or increases the frequency or severity of loss. |
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Term
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Definition
| Physical condition that increases the frequency or severity of loss. |
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Term
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Definition
| Dishonesty or character defects in an individual that increases the frequency or severity of loss. |
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Term
| Morale (attitudinal) Hazard |
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Definition
| Carelessness or indifference to a loss, which increases the frequency or severity of a loss. |
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Term
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Definition
| Characteristics of the legal system or regulatory environment that increase the frequency or severity of losses. |
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Term
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Definition
| Situation in which there are only the possibilities of loss or no loss. |
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Term
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Definition
| Situation where either profit or loss is possible. |
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Term
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Definition
| Risk that only affects individuals or small groups and not the entire economy. |
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Term
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Definition
| Rick that affects the entire economy or large numbers of persons or groups within the economy. |
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Term
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Definition
| Risk that directly affects an individual. |
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Term
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Definition
| Death of a family head with unfulfill financial obligations. |
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Term
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Definition
| Present value of the family's share of the deceased breadwinner's future earnings. |
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Term
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Definition
| Financial loss that results from the physical damage, destructions, or theft of the property. |
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Term
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Definition
| Financial loss that results indirectly from the occurrence of a direct physical damage or theft loss. |
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Term
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Definition
| Spreading of losses incurred by the few over the entire group. |
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Term
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Definition
| Loss that is unforeseen and unexpected by the insured and occurs as a result of chance. |
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Term
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Definition
| Pure risk is transferred fromt he insured to the insurer. |
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Term
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Definition
| Insured is restored to his or her approximate financial position prior to the loss. |
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Term
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Definition
| Tendency of people with higher-than-average chance of loss to seek insurance at standard rates. |
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Term
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Definition
| Process of selecting and classifying applicants for insurance. |
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Term
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Definition
| The worst loss that could happen |
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Term
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Definition
| Worst loss that is likely to happen. |
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Term
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Definition
| Techniques that reduce the frequency or severity of losses. |
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Term
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Definition
| Techniquest that provide for the funding of losses. |
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Term
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Definition
| A certain loss exposure is never acquired or an existing loss exposure is abandoned. |
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Term
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Definition
| Measures that reduce the frequency of a particular loss. |
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Term
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Definition
| Measures that reduce the severity of a loss after it occurs. |
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Term
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Definition
| Firm retains part or all of the losses that can result from a given loss. |
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Term
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Definition
| Insurer agrees to pay no more than the actual amount of the loss. The insured cannot profit from a loss. |
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Term
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Definition
| Replacement cost less depreciation. |
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Term
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Definition
| Policy taht pays the face amount of insurance if a total loss occurs. |
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Term
| Replacement Cost Insurance |
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Definition
| No deduction for physical depreciation in determining the amount paid for a loss. |
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Term
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Definition
| The insurer is entitled to recover from a negligent thrid party for any payments made to the insured. |
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Term
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Definition
| Contract where the values exchanged may not be equal but depend on an uncertain event. |
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Term
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Definition
| Contract in which only one party makes a legally enforceable promise. |
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Term
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Definition
| Provisions inserted in an insurance policy that qualify or place limitations on the insurer's promist to perform. |
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Term
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Definition
| The insured must accept the entire contract with all of its terms and conditions. |
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