Kansas life insurance
Insurer insurance company
Insured A person covered by an insurance policy
Policy owner the person entitled to exercise the rights and privileges in the
policy
beneficiary one who receives benefits
Agent Legal representative to company
Broker represents the insured
Page 1
, Kansas life insurance
Risk The chance of loss from an event that cannot be entirely
controlled
Pure risk A chance of loss or no loss, but no chance of gain.
Speculative Risk Chance of loss or gain
Risk Avoidance avoiding an act that would create a risk
Risk Reduction lowers the chance of loss by taking measures to lessen the
frequency or severity of losses that may occur
Risk Shifting Transferring risk by buying insurance to cover potential losses.
Page 2
Insurer insurance company
Insured A person covered by an insurance policy
Policy owner the person entitled to exercise the rights and privileges in the
policy
beneficiary one who receives benefits
Agent Legal representative to company
Broker represents the insured
Page 1
, Kansas life insurance
Risk The chance of loss from an event that cannot be entirely
controlled
Pure risk A chance of loss or no loss, but no chance of gain.
Speculative Risk Chance of loss or gain
Risk Avoidance avoiding an act that would create a risk
Risk Reduction lowers the chance of loss by taking measures to lessen the
frequency or severity of losses that may occur
Risk Shifting Transferring risk by buying insurance to cover potential losses.
Page 2
