General Insurance Licensing Level 1 BC
Study online at https://quizlet.com/_8kum43
1. Risk Sharing a way of helping to ensure that a loss does not spell financial ruin for a person or
business
2. Insurance *a mechanism for sharing the losses of the few among the many
*the undertaking by one person to indemnify another person against loss or
liability for loss
3. Risk chance of financial loss as a result of loss or damage that the object of insurance
may be exposed to
4. Personal risk the risk of injury to body resulting in death, serious illness, disability, or unemploy-
ment
5. Property Risk the risk of loss or damage to property owned, rented or leased
6. Liability Risk risk of being held financially responsible for bodily injury or property damage
caused to others
7. Speculative Risk A chance of loss, no loss, or gain. Not insurable.
8. Pure Risk Risk that presents the chance of loss but no opportunity for gain
9. Purpose of insur- to put the insured back into the financial position he or she was immediately prior
ance to the loss
10. Reason under- to ensure insurance is provided only for pure risks
writers review all
applications
11. how term "risk" is term commonly used to refer to the object of insurance (ie home or business)
used in insurance
business
12. Risk Avoidance
, General Insurance Licensing Level 1 BC
Study online at https://quizlet.com/_8kum43
All chance of financial loss is eliminated by avoiding an act, or not owning certain
property that would create a risk of financial loss. This generally creates different
risk in place of one being avoided.
13. Risk Retention Assuming financial responsibility for loss
14. Risk Control A conscious act or decision not to act that reduces the frequency and/or severity
of losses or makes losses more predictable.
15. Risk Transfer Transferring or shifting the risk of loss through means such as insurance or a
warranty.
16. Fortuitous Event An event that at the time the contract was made could not have been reasonably
foreseen.
17. Method of In- Payment to insured or costs to replace, rebuild, or repair damaged property; may
demnity be made directly to supplier of goods or services on behalf of the insured
18. Insurance Com- They provide financial protection to individuals and businesses for life, property,
panies liability, and health uncertainties
19. Stock Companies Companies owned by the stockholders whose investments provide the capital
necessary to establish and operate the insurance company.
20. Policy Holders the person or company buying the policy; pay a fixed premium
21. Mutual Insurance A type of insurance company owned by its policyholders; premiums may change
Company based on operating costs
22. Government In- Government based corporations which offer compulsory insurance such as ICBC,
surers EI, CPP
23. Insurance Corpo- provides compulsory auto insurance
ration of BC
Study online at https://quizlet.com/_8kum43
1. Risk Sharing a way of helping to ensure that a loss does not spell financial ruin for a person or
business
2. Insurance *a mechanism for sharing the losses of the few among the many
*the undertaking by one person to indemnify another person against loss or
liability for loss
3. Risk chance of financial loss as a result of loss or damage that the object of insurance
may be exposed to
4. Personal risk the risk of injury to body resulting in death, serious illness, disability, or unemploy-
ment
5. Property Risk the risk of loss or damage to property owned, rented or leased
6. Liability Risk risk of being held financially responsible for bodily injury or property damage
caused to others
7. Speculative Risk A chance of loss, no loss, or gain. Not insurable.
8. Pure Risk Risk that presents the chance of loss but no opportunity for gain
9. Purpose of insur- to put the insured back into the financial position he or she was immediately prior
ance to the loss
10. Reason under- to ensure insurance is provided only for pure risks
writers review all
applications
11. how term "risk" is term commonly used to refer to the object of insurance (ie home or business)
used in insurance
business
12. Risk Avoidance
, General Insurance Licensing Level 1 BC
Study online at https://quizlet.com/_8kum43
All chance of financial loss is eliminated by avoiding an act, or not owning certain
property that would create a risk of financial loss. This generally creates different
risk in place of one being avoided.
13. Risk Retention Assuming financial responsibility for loss
14. Risk Control A conscious act or decision not to act that reduces the frequency and/or severity
of losses or makes losses more predictable.
15. Risk Transfer Transferring or shifting the risk of loss through means such as insurance or a
warranty.
16. Fortuitous Event An event that at the time the contract was made could not have been reasonably
foreseen.
17. Method of In- Payment to insured or costs to replace, rebuild, or repair damaged property; may
demnity be made directly to supplier of goods or services on behalf of the insured
18. Insurance Com- They provide financial protection to individuals and businesses for life, property,
panies liability, and health uncertainties
19. Stock Companies Companies owned by the stockholders whose investments provide the capital
necessary to establish and operate the insurance company.
20. Policy Holders the person or company buying the policy; pay a fixed premium
21. Mutual Insurance A type of insurance company owned by its policyholders; premiums may change
Company based on operating costs
22. Government In- Government based corporations which offer compulsory insurance such as ICBC,
surers EI, CPP
23. Insurance Corpo- provides compulsory auto insurance
ration of BC
