Fred Loya Insurance
risk - correct answer-Uncertainty concerning the occurrence of a loss
Exposure - correct answer-what the insured is exposing to the insurer to
premium calculations - correct answer-the higher the risk is, the greater the premium
Speculative Risk - correct answer-a risk in which there is a chance of either loss or gain
pure risk - correct answer-is insurable. it is when you can only lose, not win.
ARRTS - correct answer-Avoid, Reduce, Retain, Transfer, share
Deductible - correct answer-An amount the insured must pay before benefits become
payable by the insurance company.
hazard - correct answer-risk, peril; to expose to danger or harm; to gamble
peril - correct answer-the cause of a possible loss
loss - correct answer-physical destruction or reduction in vale of an item
Direct loss - correct answer-damage to the item itself, like wrecking your car
indirect loss - correct answer-loss of use of the item , a consequence of the direct loss. ex: if
you wrecked your car, you would have to rent one.
indemnity - correct answer-what insurance does... it puts you back where you were before
the loss. indemnify means to pay you back.
underwriters - correct answer-they are the "risk selectors". they choose who to insure based
on the qualities of the risk.
adverse selection - correct answer-what the underwriters want to avoid. they only want the
best risks to insure, not ones that would be guaranteed to have a loss
Law of Large Numbers - correct answer-used by actuaries to determine statistics and then
rates for insurance. it takes money of the many to pay the losses of the few
limits on auto policies can be split limits - correct answer-when the limits available are split
between paying one limit for bodily injury claims and a separate limit for property damage
claims.
texas minimum auto limits - correct answer-~25,000 for bodily injury to one person in other
guy's car.
risk - correct answer-Uncertainty concerning the occurrence of a loss
Exposure - correct answer-what the insured is exposing to the insurer to
premium calculations - correct answer-the higher the risk is, the greater the premium
Speculative Risk - correct answer-a risk in which there is a chance of either loss or gain
pure risk - correct answer-is insurable. it is when you can only lose, not win.
ARRTS - correct answer-Avoid, Reduce, Retain, Transfer, share
Deductible - correct answer-An amount the insured must pay before benefits become
payable by the insurance company.
hazard - correct answer-risk, peril; to expose to danger or harm; to gamble
peril - correct answer-the cause of a possible loss
loss - correct answer-physical destruction or reduction in vale of an item
Direct loss - correct answer-damage to the item itself, like wrecking your car
indirect loss - correct answer-loss of use of the item , a consequence of the direct loss. ex: if
you wrecked your car, you would have to rent one.
indemnity - correct answer-what insurance does... it puts you back where you were before
the loss. indemnify means to pay you back.
underwriters - correct answer-they are the "risk selectors". they choose who to insure based
on the qualities of the risk.
adverse selection - correct answer-what the underwriters want to avoid. they only want the
best risks to insure, not ones that would be guaranteed to have a loss
Law of Large Numbers - correct answer-used by actuaries to determine statistics and then
rates for insurance. it takes money of the many to pay the losses of the few
limits on auto policies can be split limits - correct answer-when the limits available are split
between paying one limit for bodily injury claims and a separate limit for property damage
claims.
texas minimum auto limits - correct answer-~25,000 for bodily injury to one person in other
guy's car.
