RMIN 4000 Test 1 Brown UGA Questions and Answers 100% Verified

RMIN 4000 Test 1 Brown UGA Questions and Answers 100% Verified Exposures things of value (assets) that could be lost Perils things that cause injury or loss risk a calculated possibility of a negative outcome Frequency the number of losses (such as fire or theft) that occur within a specified time period. aka the probability of a loss Severity the dollar amount of a loss for a specific peril (fire, theft, collision) aka How much does it cost when the loss does occur? Hazard a condition that creates or increases the frequency or severity of loss but does NOT cause the loss. Physical Hazard a physical condition that increases the frequency or severity of loss Moral Hazard the presence of insurance changes the behavior of the insured. ex: making hail damage to get a check Morale hazard (attitudinal hazard) A condition of carelessness or indifference that increases the frequency or severity of loss.