C11 Principles and Practice of Insurance Latest Update 100% Correct

C11 Principles and Practice of Insurance Latest Update 100% Correct insurance A contract which one party the insurer, for monetary consideration agrees to reimburse another, the insured, for loss or liability for a loss on a defined subject caused by specific hazards or perils. risk The chance of loss. Specifically, the possible loss or destruction of property or the possible incurring of a liability. Sometimes referred to as the subject of an insurance contract objectives of risk management: pre loss those to be met before a loss occurs Objectives of risk management: post loss those to be met after a loss occurs Pre-Loss Objectives 1. Social responsibility 2. Externally imposed obligations 3. Peace of mind 4. Cost of risk Post-Loss Objectives 1. Social responsibility 2. Survival 3. Operational continuity 4. Stable earnings 5. Sustained growth