CAPP Personal Finance Chapter 10, Questions and answers, 100% Accurate. Graded A+

CAPP Personal Finance Chapter 10, Questions and answers, 100% Accurate. Graded A+ Insurance - Protection against possible financial loss. Insurance company - A risk-sharing firm that assumes financial responsibility for losses that may results from an insured risk. Insurer - An insurance company. Policy - A written contract for insurance. Premium - The amount of money a policy holder is charged for an insurance policy. Insured - A person covered by an insurance policy. Policyholder - A person who owns an insurance policy. Risk - Change or uncertainty of loss; also used to mean "the insured." Peril - The cause of a possible loss. Hazard - A factor that increases the likelihood of loss through some peril. Pure risk - A risk in which there is only a chance of loss. Speculative risk - A risk in which there is a chance of either loss or gain. Self-insurance - The process of establishing a monetary fund to cover the cost of a loss. Liability - Legal responsibility for the financial cost of another person's losses or injuries. Negligence - Failure to take ordinary or reasonable care in a situation. Strict liability - A situation in which a person is held responsible for intentional or unintentional actions. Vicarious liability - A situation