PA LIFE INSURANCE LATEST VERSION GRADED A+

PA LIFE INSURANCE LATEST VERSION GRADED A+ Insurance created as a practical means to reduce the financial impact of an unexpected loss. life insurance transfers to a life insurance company the risk of financial loss resulting from the death of an insured person. The life insurance company guarantees to pay a specified amount of money to a beneficiary when the insured dies. annuity A cash contract between a person (the annuity owner) and a life insurance company (the annuity issuer). The annuity is set up to accumulate and/or distribute a sum of money. beneficiary person or persons designated to receive benefits from insurance policy or annuity. health insurance helps to lessen the financial impact of an insured's illness or disability by transferring the risk to a health insurance company. property and casualty insurance covers damage to a loss of property such as a home or automobile by compensating the insured for the amount of the loss or by providing a specific sum of money according to the the terms of the insurance policy agents producers, legally considered representatives of the insure that employs them, risk the chance of loss loss an unwelcome and unplanned reduction in economic value` pure risk involves only the chance of a loss, and no gain to the person assuming the risk, including untimely death or serious illness or disability of a person. (insurable) speculative risk results in loss or gain. examples include: gambling and investing in the stock market. (uninsurable) direct loss immediate result of an event involving an insured peril. example: death of a family breadwinner indirect loss more remote, example: loss of a decedents income is an indirect loss resulting from the direct loss of the insured's life. exposure or loss exposure state of being subject to a possible loss. example: a coal miner is generally exposed to a greater risk of death than an accountant, therefore a higher premium would be charged to insure the coal miner. exposure units basis for each applicants premium. example: a life insurer will assign more exposure units to an applicant who is a coal miner than one who is an accountant. peril immediate cause of a loss, example: death, disability and accidental injuries or sickness. hazard a condition that raises the chance of encountering a peril or increases the severity of a loss. moral hazards an individuals traits or habits that increase the chance of a loss. examples: alcoholism, smoking and drug addiction. morale hazards individual tendencies arising from a state of mind, attitude or indifference to loss. example: driving recklessly ( In fact, doing anything recklessly because "I have insurance for that" demonstrates a morale hazard.) physical hazards individual physical characteristics that increase the chance of loss. They exist due to a person's physical condition as opposed to arising from his or her character. High cholesterol is an example of a physical hazard. risk management techniques avoiding the risk reducing the risks retaining the risks sharing the risks transferring the risk