Washington Life/Health Insurance Exam Accurate 100%.

policy owner - ANSWER usually, but not always the person covered by the policy beneficiary - ANSWER the person who is paid when a claim is submitted agent/producer - ANSWER acts as a legal representative of the insurance company broker - ANSWER representative of the Insured, not the insurance company risk - ANSWER The chance or uncertainty of loss Pure risk - ANSWER the chance of experiencing a loss (without the possibility of gain). Only downside, no upside. Speculative risk - ANSWER s the chance of loss one accepts in the hope of realizing a gain Risk avoidance - ANSWER staying away from risky activities altogether Risk reduction - ANSWER reduce the chance of something bad happening Risk shifting - ANSWER Get someone else to accept the risk Buying insurance - ANSWER transfer a portion of your risk to the Insurer Risk Retention - ANSWER the individual or business that opts not to buy insurance retains the entire risk Indemnification - ANSWER an insurance concept that states that some portions of the insurance industry prefer that we be made only whole after a loss rather than coming out ahead (Only getting back what you are owed, not getting more than what you had to start with) Subrogation - ANSWER the transfer to the Insurer of the Insured's rights to recover damages from a responsible third party Peril - ANSWER the cause of loss Law of Large numbers - ANSWER the mathematical concept that makes it easier to predict losses if we have a large number of Insureds Insurable losses are... - ANSWER Economic, Predictable, Accidental, Measurable, Non-Catastrophic non-participating companies - ANSWER Stock companies that exist for the sole purpose of generating profits for their stockholders