AINS 21 Segment A (ch 1-3) Latest 2024 Rated A+

Loss exposure Any condition or situation that presents a possibility of loss, whether or not an actual loss occurs Risk management The process of making and implementing decisions that will minimize the adverse effects of accidental losses on an organization Loss prevention A risk control technique that reduces the frequency of a particular loss Loss reduction A risk control technique that reduces the severity of a particular loss Exposure unit A fundamental measure of the loss exposure assumed by an insurer Property-casualty insurance One of the two main sectors of the insurance industry, encompassing numerous types of insurance, most of which cover the financial consequences of damage to one's own property or legal liability to others.Life-health insurance One of the two main sectors of the insurance industry, encompassing numerous types of insurance that cover the financial consequences of death, injury, or sickness Utmost good faith An obligation to act in complete honesty and to disclose all relevant facts Contract of adhesion Any contract in which one party must either accept the agreement as written by the other party or reject it Contract of indemnity A contract in which the insurer agrees, in the event of a covered loss, to pay an amount directly related to the amount of the loss Self-contained policy A single document that contains all the agreements between the insured and the insurer and that forms a complete insurance policy Modular policy An insurance policy that consists of several different documents, none of which by itself forms a complete policy Property insurance Any type of insurance that indemnifies an insured who suffers a financial loss because property has been lost, stolen, damaged, or destroyedLiability insurance Insurance that covers losses resulting from the insured's liability to others Homeowners policy Policy that covers most of the property and liability loss exposures that arise out of residential property ownership and occupancy, as well as property and liability loss exposures that individuals and families may have while they are away from their residences. Personal liability coverage Coverage for damages, plus costs of any defense, related to a claim or suit brought against the insured that resulted