Fundamentals of Risk & Insurance Quiz #1 SG
Million Dollar Roundtable
An association of life insurance agents who qualify by selling $1 million worth or more of life insurance coverage
Why should a person have Life Insurance?
Because it provides protection against premature death and longevity and also risk of financial probation
What 3 speakers did we have in class?
Cliff Tucker, Clifford Thompson, & Billy Roberts
Example of a Risk
Driving too fast
New Type Risks
Environmental damage (ex. BP settlement), discrimination in employment, sexual harassment, and identity theft
Example of Peril
Fire, windstorm, hail, or theft; each of these is the cause of a loss that occured
Types of Insurance
Life, health, disability, property & casualty, workers compensation, breakdown, & credit life
What are the two largest types of Social Insurance?
Medicare & Social Security
3 Classifications of Risks
Personal, Property, & Liability
Why study insurance?
Preparation for a career in insurance, and the average person will spend big portion of their income on insurance over a lifetime
Who is the author of the textbook?
Therese M. Vaughan
Peril
a cause of a loss
Hazard
a condition that may create or increase the chance of a loss arising from a peril
C.L.U. (Chartered Life Underwriter)
a professional designation for individuals who wish to specialize in life insurance and estate planning
CPCU (Chartered Property and Casualty Underwriter)
a professional designation in property-casualty insurance and risk management
Private Insurance
consists mostly of voluntary insurance programs available to individual as means of protection against possibility of loss
Example of Christopher Columbus Risk
go out to far fall of the earth
Personal Risks
includes death, injury, or disability
Clifford Thompson
is Insurance lobbying
Cliff Tucker
is Risk Management
Billy Roberts
is an Insurance Company President
What makes a Risk Insurable?
large enough to make losses predictable; loss must be measurable; & loss must be accidental
Safety Systems that reduce risks
limiting hours of truck drivers
Property Risks
loss by fire, tornado, or hurricane
Actuary
people who predict losses and charge a premium based on the loss
What does Medicare cover?
public guarantee insurance programs, F.D.I.C., and N.C.U.A
Insurance
shifting of a risk from one individual to a group or a sharing of losses
Moral Hazard
the increase in the probability of loss that results from dishonest tendencies in the character of an insured personn
Liability Risks
the unintentional injury or other persons or damage to their property through negligence or carelessness
Social Insurance
this is compulsory insurance usually operated by government whose benefits are determined by law and the primary emphasis is on social adequacy
Risk Avoidance
this is when decisions are made to prevent a risk from coming into existence
Purpose of Risk Management and Risk Manager
to eliminate & reduce possibility of risk or losses
What is a Risk?
uncertainty about the outcome or an exposure to a loss
Medicare
used to cover old people
