ch1-insurance cards

Moral hazard

Moral hazards refer to those applicants that may lie on an application for insurance, or in the past, have submitted fraudulent claims against insurer.

Morale Hazard

Morale hazard refers to an incerease in the hazard presented by a risk, arising from the insured's indifference to loss because of the existence of insurance. (e.g. I'm not going to bother fixing this. If it breaks my insurance will pay to replace it)

Perils

Perils are the causes of loss insured against in an insurance policy.

Physical hazard

Physical hazards are those arising from the material, structural, or operational features of the risk, apart from the persons owning or managing it.

Hazards classifications

Physical, Moral and Morale

Property Insurance

Property Insurance insures against the loss of physical property or the loss of its income-producing abilities;

Hazard

conditions or situations that increase the probability of an insured loss occuring.

Exposure

is a unit of measure used to determine the rates charged for insurance coverage.

Life Insurance

Life Insurance insures against the financial loss caused by the preamature death of the insured;

Casualty insurance

Casualty insurance insures against the loss/or damage of property and resulting liabilities.

Conditons

Conditions such as slippery floors or congested traffic are hazards and may increase the chance of a loss occuring.

Health Insurance

Health Insures against the medical expenses and/or loss of income caused by the insured's sickness or accidental injury.

In Life Insurance the following factors determine rates:

The age of insured Medical history Occupation; and Sex