Insurance job

What is reduction?

Lessening the possibility or severity of a loss

What is utmost good faith?

Al parties are relied upon to be honest to each other.

What is insurable interest?

To purchase insurance, the policy owner must face the possibility of losing money or something of value in the event of loss.

What is risk?

Uncertainty of loss

What is physical hazard?

a physical condition that increases the chance of loss

What is pure risk?

a risk that presents the chance of loss but no opportunity for gain

What is perils?

cause of loss insured against in an insurance policy

What is moral hazard?

consumer behavior that leads to a higher utilization of health care services when the services are covered by insurance

What is avoidance?

eliminating exposure to a loss

What is adverse selection?

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

What is the law of large numbers?

the larger the number of individuals randomly drawn from a population, the more representative the resulting group will be of the entire population

What is a hazard?

Any road condition or other road user (driver, bicyclist, pedestrian) that is a possible danger.

What are the methods of handling a risk ?

STARR Sharing Transfer Avoidance Retention Reduction

What is speculative risk?

The chance either to gain or to lose.

What is a morale hazard?

Expect that they arise from a state of mind that causes indifferences to loss, such as carelessness. Actions taken without forethought may cause physical injuries.

What is transfer?

Insurance is the most common method is transferring risk from an individual group to an insurance company

What is insurance?

Insurance transfers the risk of loss from an individual or business entity to an insurance company, which in turn spreads the costs of unexpected losses to many individuals.

What is sharing ?

method of dealing with risk for a group of individual persons or businesses with the same or similar exposure to loss to share the losses that occur within that group

What is indemnity?

security or protection against a loss or other financial burden

what is homegeneous?

similarities in a group, culture, or population