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C11 - Final Exam Review 1 Exam | Questions & 100% Correct Answers (Verified) | Latest Update | Grade A+

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Three types of risk : Personal Property Liability Examples of personal risk : premature death physical disability old age unemployment Examples of property risk : clothes sports equipment electronics books 2 | P a g e Examples of liability risk : you cause injury to others you damage the property of others injuries to others occur on your property your children cause injury/damage your pets cause injury/damage Indemnify : return to the same financial position as just prior to the loss Risk : implies some form of uncertainty about an outcome the outcome could leave us in a worse position than we are right now Chance : implies the outcome could be a favorable one example: you spend $10 on a lottery ticket you have a 'chance' of winning $1 million or losing the $10 Peril : an event that gives rise to a loss

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