AAMI COMP FINAL SCRIPT 2026 FULLY
SOLVED ANSWER COLLECTION
◉ Risk.
Answer: a condition in which there is a possibility of an adverse
deviation from a desired outcome that is expected of hoped for.
◉ Risk Management.
Answer: all efforts designed to preserve assets and earning power
associated with a business.
◉ Market Risk.
Answer: is the uncertainty associated with an investment decision.
◉ Pure Risk.
Answer: a situation where only loss or no loss can occur.
◉ Risk Control.
Answer: minimizes losses through avoidance and/or reduction. Ex:
Security Officers, cameras, Employee Handbooks, driving safely.
◉ Risk Financing.
,Answer: the process of transferring risk versus risk retention. Ex:
purchasing insurance.
◉ Property Risks.
Answer: risks that involve tangible and intangible assets.
◉ Perils.
Answer: a cause of loss by either natural events or actions of people.
◉ Losses.
Answer: direct losses such as damage to property and indirect losses
which arise from the inability to continue normal business
operations.
◉ Statutory Liability.
Answer: laws create obligations on part of the business. (Workers
Compensation laws)
◉ Contractual Liability.
Answer: involve contracts entered into with other parties.
◉ Tort Liability.
Answer: civil wrongs including breach of contracts and torts.
,◉ Business Owners Policies.
Answer: a business version of the homeowners policy.
◉ Casualty Insurance.
Answer: insurance that provides monetary benefits to a business
that has experienced an unforeseen peril, such as a flood or fire.
◉ Named Peril Approach.
Answer: casualty insurance that starts from the position of covering
nothing, and build up the risks it protects against, step by step by
naming specific parts.
◉ All Risk Approach.
Answer: casualty insurance that provides a blanketed approach to
risk covering whatever risk arises.
◉ Valuation.
Answer: with BOP's real and personal property are valued at
replacement cost.
◉ Insurance to Value.
, Answer: a provision of property insurance policies that requires the
insured to carry a minimum policy limit relative to the value of the
property.
◉ Business Interruption Insurance.
Answer: insurance that protects companies during the period
necessary to restore the property damaged by an insured peril.
◉ General Liability Coverage.
Answer: coverage provides payment for bodily injury and property
damage. It covers customer oriented risk such as injury to
customers caused by a firms product.
◉ Coinsurance Clause.
Answer: requires that a property be insured for at least 80% of the
property's actual replacement cost or value. Value or replacement
are determined at the time of the loss.
◉ Product Liability Insurance.
Answer: insurance that protects a firm against claims that its
product caused bodily injury or property damage to the user.
◉ Buy Sell Insurance.
SOLVED ANSWER COLLECTION
◉ Risk.
Answer: a condition in which there is a possibility of an adverse
deviation from a desired outcome that is expected of hoped for.
◉ Risk Management.
Answer: all efforts designed to preserve assets and earning power
associated with a business.
◉ Market Risk.
Answer: is the uncertainty associated with an investment decision.
◉ Pure Risk.
Answer: a situation where only loss or no loss can occur.
◉ Risk Control.
Answer: minimizes losses through avoidance and/or reduction. Ex:
Security Officers, cameras, Employee Handbooks, driving safely.
◉ Risk Financing.
,Answer: the process of transferring risk versus risk retention. Ex:
purchasing insurance.
◉ Property Risks.
Answer: risks that involve tangible and intangible assets.
◉ Perils.
Answer: a cause of loss by either natural events or actions of people.
◉ Losses.
Answer: direct losses such as damage to property and indirect losses
which arise from the inability to continue normal business
operations.
◉ Statutory Liability.
Answer: laws create obligations on part of the business. (Workers
Compensation laws)
◉ Contractual Liability.
Answer: involve contracts entered into with other parties.
◉ Tort Liability.
Answer: civil wrongs including breach of contracts and torts.
,◉ Business Owners Policies.
Answer: a business version of the homeowners policy.
◉ Casualty Insurance.
Answer: insurance that provides monetary benefits to a business
that has experienced an unforeseen peril, such as a flood or fire.
◉ Named Peril Approach.
Answer: casualty insurance that starts from the position of covering
nothing, and build up the risks it protects against, step by step by
naming specific parts.
◉ All Risk Approach.
Answer: casualty insurance that provides a blanketed approach to
risk covering whatever risk arises.
◉ Valuation.
Answer: with BOP's real and personal property are valued at
replacement cost.
◉ Insurance to Value.
, Answer: a provision of property insurance policies that requires the
insured to carry a minimum policy limit relative to the value of the
property.
◉ Business Interruption Insurance.
Answer: insurance that protects companies during the period
necessary to restore the property damaged by an insured peril.
◉ General Liability Coverage.
Answer: coverage provides payment for bodily injury and property
damage. It covers customer oriented risk such as injury to
customers caused by a firms product.
◉ Coinsurance Clause.
Answer: requires that a property be insured for at least 80% of the
property's actual replacement cost or value. Value or replacement
are determined at the time of the loss.
◉ Product Liability Insurance.
Answer: insurance that protects a firm against claims that its
product caused bodily injury or property damage to the user.
◉ Buy Sell Insurance.
