RIBO Definitions (All Accurate 100%)

INSURANCE correct answers The undertaking by one person to indemnify another person against loss or liability for loss in respect of a certain risk or peril to which the object of the insurance may be exposed, or to pay a sum of money or other thing of value upon the happening of a certain event OR Sharing of the losses of a few people among the many who pay premiums SPECULATIVE RISK correct answers A chance of loss but there is also a chance of profit, and because of the chance of profit these are uninsurable risks CONSIDERATION correct answers A requirement of all contracts in the common law provinces. It is what one party gives or promises to give in exchange for the act or promise of the other party to the contract PERIL correct answers An event, which may cause a loss to occur PHYSICAL HAZARD correct answers This type of hazard deals with the nature of the actual risk RISK correct answers The chance of a loss. Also, the subject of an insurance contract. (ie: an insured's property can be either a good risk or poor risk) PURE RISK correct answers A chance of loss but no chance of profit RATE correct answers The price of a unit of insurance (a unit of insurance usually has a $100 or $1000 value) for a period of one year. It is expressed in either dollars or cents or as a percentage INDEMNITY correct answers A principle of insurance by which the insured's, up to the limit of the policy, and are fully compensated for the actual cash value of what they have lost, so that they neither gain nor lose as a result of the loss HAZARD correct answers A condition, which may cause a peril to occur or make the loss more severe ACTUAL CASH VALUE correct answers The current cost of replacing an article with a similar one in the same condition, taking into consideration depreciation and in some circumstance appreciation MORAL HAZARD correct answers This type of hazard relates to the human element of the risk PREMIUM correct answers The amount of money an insurance company charges to provide coverage for a specific item or policy CONTRACT OF INSURANCE correct answers Is a contract whereby one party called the insurer agrees in return for a consideration called the premium to indemnify another party called