Wisconsin Life and Health State Exam Flash Cards

Vocabulary terms, and concepts for the Wisconsin Life and Health Insurance exam.

55 cards   |   Total Attempts: 185
  

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Define: Insurance
A contract that indemnifies another against loss, damage or liability from an unknown event.
Define: Policy
Legal contract
What is Pure Risk?
Circumstances were there is a chance of loss - the loss may or may not happen - and there is no possibility for gain.
What is Speculative Risk?
Circumstances that involve both an uncertainty of loss and of gain.
Define: Risk
The uncertainty of financial loss, or the chance of loss, when more than one outcome is possible.
Define: Insured
The person who is covered by the insurance
Define: Loss
The reduction in the value of an asset.
Define: Claim
The demand for payment of the insurance benefit to the person named in the policy.
Define: Policy owner
The individual being insured.
Define: Premium
A set amount of money paid to the insurance company.
Define: Insurer
The insurance company.
Define: Insured
The person who is covered by the insurance.
What are the two types of Risk?
  • Pure Risk
  • Speculative Risk
What are Perils and hazards?
They are factors that cause or give rise to risk.
Define: Peril
Is the immediate specific event causing loss and giving rise to risk. i.e. When a building burns, fire is the peril.