Chapter One: General Insurance

Lakukan tugas rumah & ujian kamu dengan baik sekarang menggunakan Quizwiz!

Exposure

A unit of measure to determine rates charged for insurance coverage. Such as the age of the insured, medical history, occupation, and sex.

Homogeneous

A large number of units having the same or similar exposure to loss.

Dividen

Return of unused premium.

AM Best

AM Best & Company assigns ratings to life, property, and casualty insurance companies based upon the financial stability of the insurer.

Elements of a legal contract

Agreement, Consideration, Competent Parties, and Legal Purpose.

Aleatory

An exchange of unequal amounts or values.

Captive Insurer

Corporations organize captive insurers in order to obtain lower insurance rates and avoid the uncertainties and risks associated with commercial insurance.

Insurable Risk Examples

Due to chance, definite and measurable, statistically predictable, not catastrophic, and randomly selected and large loss exposure.

Surplus Lines

Insurance that is not available in the usual market place from admitted insurers.

Speculative Risk

Involves the opportunity for either loss or gain. An example of speculative risk is gambling. These types of risks are not insurable.

Who might receive dividends from a mutual insurer?

Policyholders

Which services are associated with Standard & Poor's and AM Best?

Rating the financial strength of insurance companies.

Pure Risk

Refers to situations that can only result in a loss or no charge. There is no opportunity for financial gain. Pure risk is the only type of risk that insurances companies are willing to accept.

Indemnity

Reimbursement of only the financial loss of the insured.

Hazard is best defined as?

Something that increases the risk of loss. Hazards are conditions or situations that increase the probability of an insured loss occurring.

Perils

The causes of loss insured against in an insurance policy.

Risk Retention

The planned assumption of risk by an insured through the use of deductibles, co-payments, or self-insurance.

Avoidance

Eliminating exposure to a loss.

Adverse Selection

The insuring of risks that are more prone to losses than the average risk.


Set pelajaran terkait

Irregular verbs ENGLISH > ARABIC (Base Form -> Past Simple -> Past Participle )

View Set

HESI: Skin Integrity and Rationale

View Set

Satire in The Pardoner's Tale 222

View Set