Daniel Brown UGA RMIN 4000 CH 1
Pure Risk - answer Loss or no loss
Speculative Risk - answer Loss, gain, or neither
Frequency - answer probability of loss occurring
Severity - answer Cost of loss
Peril - answer cause of loss
Hazard - answer A condition that increases the frequency or severity of a loss. (Hazards
don't cause a loss)
4 Types of hazard - answer1) Physical
2) Moral
3) Morale
4) Legal
Physical Hazard - answerPhysical condition causes hazard (Rusted pipes)
Moral Hazard - answerhaving insurance changes behavior of the insured (using a
hammer to fake hail damage to a roof)
Morale (Attitudinal) Hazard - answercarelessness or indifference to a loss causes
hazard (leaving car keys in an unlocked car)
Legal Hazard - answerlegal system increases frequency of loss (juries being
sympathetic to one group over another)
Types of Pure Risk - answer1) Personal
2) Property
3) Liability
4) Loss of Business income
5) Cyber Security
Personal Risk - answerdirectly affect an individual or family (Death, unemployment,
disability)
Property Risk - answerTheft or Destruction of property (house burns down or is flooded)
Pure Risk - answer Loss or no loss
Speculative Risk - answer Loss, gain, or neither
Frequency - answer probability of loss occurring
Severity - answer Cost of loss
Peril - answer cause of loss
Hazard - answer A condition that increases the frequency or severity of a loss. (Hazards
don't cause a loss)
4 Types of hazard - answer1) Physical
2) Moral
3) Morale
4) Legal
Physical Hazard - answerPhysical condition causes hazard (Rusted pipes)
Moral Hazard - answerhaving insurance changes behavior of the insured (using a
hammer to fake hail damage to a roof)
Morale (Attitudinal) Hazard - answercarelessness or indifference to a loss causes
hazard (leaving car keys in an unlocked car)
Legal Hazard - answerlegal system increases frequency of loss (juries being
sympathetic to one group over another)
Types of Pure Risk - answer1) Personal
2) Property
3) Liability
4) Loss of Business income
5) Cyber Security
Personal Risk - answerdirectly affect an individual or family (Death, unemployment,
disability)
Property Risk - answerTheft or Destruction of property (house burns down or is flooded)
