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Types of Risk
Risk Management
Insurance Terminolo
gy
Property & Liability
Insurance
Health and Life
Insurance
Chance of loss with no chance of gain
What is
Pure risk?
The type of risk that may result in a gain or loss.
What is speculative risk ?
Pure risk faced by a large number of people and the
amount of loss can be predicted.
What is
insurable risk?
Chance of loss or harm to personal or real
property.
What is property risk?
Chance that loss may occur when your actions result in injuries to others or damages to someone
else’s property
What is liability risk?
An organized strategy for
controlling financial loss from pure and
insurable risks.
What is
risk management?
The first step in a risk management/assessme
nt strategy.
What is “identify risks” ?
Lowering the chance for loss by not engaging in
activities that could result in loss.
What is risk avoidance?
Taking precautions to reduce the chance of loss
or severity of loss
What is risk reduction?
Accepting the consequences of risk and the financial burden.
What is risk assumption?
Spreading the risk to protect assets and income.
What is insurance?
A specified amount, that you are
responsible for, subtracted from covered losses.
What is a deductible?
Sums of money to be paid for specific types
of losses under the terms of the policy.
What are benefits?
A policyholder’s request for
reimbursement for a loss under the terms of the
insurance policy.
A written amendment to an insurance policy.
What is an endorsement?
Protection from loss regarding your personal
property and liability risks when you rent an
apartment or a home.
What is renter’s insurance?
Protects the insured, in the event of a car
accident, against claims for bodily injury to
another person and damage to another person’s property.
What is liability coverage?
Protects your own car against damages from
accidents or vehicle overturning.
What is collision coverage?
Drivers receive reimbursement for their expenses from their own insurer no matter who is
responsible for the accident.
What is no-fault insurance?
A personal catastrophe policy which supplements your basic auto and
property liability coverage.
What is umbrella liability insurance?
The person named in a life insurance policy to receive
benefits.
What is a beneficiary?
The death benefit of a life insurance policy.
What is the face amount?
Health insurance coverage that pays for your hospital room and board and prescription
drugs during your hospital stay.
What is basic health insurance?
The most common form of life insurance
that only lasts for a specified period of
time.
What is term life insurance?
When a family has more than one insurance plan the insurers will share the costs of the claim, not
to exceed 100% of allowable expenses.
When a family has more than one insurance plan the
insurers will share the costs of the claim, not to exceed 100%
of allowable expenses.
What is coordination of
benefits?
Final Jeopardy
The nationwide claims database which details information of claims filed.
Comprehensive Loss Underwriting Exchange