Provide financial (economic) protection against losses that may be incurred due to a chance happening (occurrence) or event.
To protect oneself against losses. The insured has to be 21 or older.
To transfer risk to an insurer. The insured has to be 65 or older.
There must be an existence of a sharing of losses by members of the group
An agreement (policy or certificate) whereby, for a set amount of money (the premium), one party (the insurer) agrees to pay the other party (the insured or his or her beneficiary) a set sum (the benefit) upon occurrence of some event)
A social device whereby individuals transfer the financial risk associated with death, illness, injury, or disability to a group of persons, and which involves accumulation of funds by the group from these individuals to meet the uncertainty of financial losses associated with death, illness, injury, or disability.
To promise to substitute future financial or economic certainty for uncertainty and to replace the unknown with a sense of security.
An agreement (policy or certificate) whereby, for a set amount of money (the premium), one party (the insurer) agrees to pay the other party (the insured or his or her beneficiary) a set sum (the benefit) upon occurrence of some event)
A device or instrument that provides the funds to meet uncertainties
A contract whereby one undertakes indemnify another against loss, damage, or liability arising from a contingent or unknown event.
A device or instrument that provides the funds to meet uncertainties
A substitution/exchange of a small certain loss (premium) for a large uncertain loss (claim). Layman's definition.
May be referred to as a written instrument, contract, or a policy
A social device that transfers risk from an individual to a group (insurer), thus pooling a large number of individuals (pure risks). Funds to cover the individual losses are raised by collecting premiums in exchange for assuming the losses up to a predetermined limit. Conceptual definition.
Uncertainty about loss exists when there is a possibility of more than one outcome.
Uncertainty about loss exists when there is a possibility of only one outcome.
The possibility of someone losing without insurance.
Pure
Speculative
Peril
There is no possibility of gain or profit from a pure risk.
Involves the possible outcome of: loss or no loss.
Involves the possibility for either loss or gain.
Only risk that insurance companies accepts
Involves the possibility of either loss or gain.
It is insurable
Not insurable
A hazard
The actual cause of the loss
An immediate specific event causing loss and giving rise to risk
Actual cause of the loss
Anything that increase the chance/likelihood that loss will occur, or the severity of a loss that does occur.
Does not actually case the damage
Moral
Personal
Morale
Physical
Legal
Deals with alcoholism and drug addiction
Associated with mental attitudes, behaviors, ethics and habits
Deals with a person's state of mind
Examples are reckless driving, socializing, paying bills late, etc.
Deals with mental attitudes, behaviors, ethics, and habits
Deals with a person's state of mind.
Deals with a person's state of mind
Associated with the law
Anything that poses a risk that can be seen, heard, touched, tasted, or smelled
Anything that deals with physicality
The chance of a certain risk ending up in court.
Deals with the mind of a person
The larger the number of similar units the more predicable the loss
The larger the group size the better for the insurance company to create prices
Used to predict losses and to establish rates
The insured benefits
Mortality and morbidity tables are based on the law of large numbers
Probability of disease or disability
Life expectancy and is the table used for life and annuity products.
Deals with when will a person die
Deals with mortality
Life expectancy table
Probability of disease or disability
The possibility of a loss
People are exposed to various types on a daily basis
Actual cause of the loss
The type of value (asset) exposed to loss (key employee, breadwinner)
The peril that causes loss
How long the loss lasts
The extant of the potential financial consequences (depletion of savings).
Property
Financial
Liability
Personal (human) and Personnel Loss Exposure
The degree of a loss a person/organization faces in regard to lawsuits brought by a third party.
The degree of loss of a person/organization faces in regard to property.
Presents the possibility of a financial loss to an individual or a family
The degree of loss of a person/organization faces in regard to property.
Presents the possibility of a financial loss to an individual or a family
The degree of a loss a person/organization faces in regard to lawsuits brought by a third party.
Presents the possibility of a financial loss to a business because of the death of a key employee
Presents the possibility of a financial loss to an individual or a family
Loss of an important human
Presents the possibility of a financial loss to a business because of the death of a key employee
Presents the possibility of a financial loss of a friend
Presents the possibility of a financial loss to an individual or a family
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