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Cards In This Set
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_____ is protection against possible financial loss.
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Insurance
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A person joins the risk-sharing group by purchasing a contract known as a ____.
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Policy
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Purchaser of the policy is called ____.
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Policyholder
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What is a fee for insurance?
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Premium
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The policyholder pays the company a ______.
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Premium
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___ is the chance of loss or injury.
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Risk
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____ is anything that may possibly cause a loss.
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Peril
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___ is anything that increases the likelihood of loss through peril.
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Hazard
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____ is the failure to take ordinary or reasonable care to prevent accidents from happening.
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Negligence
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What are some examples of pure/insurable risk?
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Personal, property, and liability
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What is a speculative risk?
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Carries a chance of either loss or gain
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What is risk assumption?
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Taking on resposibility for the negative results of a risk
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What is a deductible?
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The set amount the policyholder must pay per loss on an insurance policy
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What are the two types of risk property owners face?
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1. Physical damage2. Loss/damage caused by criminal behavior
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What is liability?
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The legal responsibility for the financial cost of another person's losses or injuries
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