What is Insurance? who is it between?
It is a contract
Between the insurance company and the Insured
Insurance indemnifies against?
The insurance party will indemnify the insured party against loss, damage, or liability from an unknown event
Who does life insurance protect?
Protects the survivors after the insureds death
How does insurance work?
It transfers the risk of loss for the insured to many individuals in order to spread the cost of unexpected loss
What is risk?
It is the chance of loss occuring
2 types of risk?
Pure Risk
Speculative Risk
Which type of risk do insurance companies insure?
Pure Risk
What is pure risk?
Risk that results in loss or no change.
No oppurtunity for financial Gain
What is speculative Risk?
Risk that results in loss or gain
Example of speculative risk?
Gambling
What are hazards?
Conditions which increase the chance of an insured loss from occuring
3 types of hazards
Moral Hazards
Morale Hazards
Physical Hazards
Example of Hazards
Lifestyle and Existing Health
Scuba Diving
What are perils?
They are the causes of loss insured against in an insurance company
What does life insurance insure? What is the peril?
Insures against the financial loss caused by the premature death of the insurance
What does health insurance insure? What is the peril
Insures medical expenses and/or loss of income
Caused by the insured sickness or accident
What does property insurance insure?
Insures the loss of physical property or its income producing abilities
What does casualty insurance insure?
Insures the loss and/or damage of property
What is Insurance? who is it between?
It is a contract
Between the insurance company and the Insured
Insurance indemnifies against?
The insurance party will indemnify the insured party against loss, damage, or liability from an unknown event
Who does life insurance protect?
Protects the survivors after the insureds death
How does insurance work?
It transfers the risk of loss for the insured to many individuals in order to spread the cost of unexpected loss
What is risk?
It is the chance of loss occuring
2 types of risk?
Pure Risk
Speculative Risk
Which type of risk do insurance companies insure?
Pure Risk
What is pure risk?
Risk that results in loss or no change.
No oppurtunity for financial Gain
What is speculative Risk?
Risk that results in loss or gain
Example of speculative risk?
Gambling
What are hazards?
Conditions which increase the chance of an insured loss from occuring
3 types of hazards
Moral Hazards
Morale Hazards
Physical Hazards
Example of Hazards
Lifestyle and Existing Health
Scuba Diving
What are perils?
They are the causes of loss insured against in an insurance company
What does life insurance insure? What is the peril?
Insures against the financial loss caused by the premature death of the insurance
What does health insurance insure? What is the peril
Insures medical expenses and/or loss of income
Caused by the insured sickness or accident
What does property insurance insure?
Insures the loss of physical property or its income producing abilities
What does casualty insurance insure?
Insures the loss and/or damage of property