Arizona Life Insurance Terms with verified definitions

Arizona Life Insurance Terms with verified definitions

Insurance |- |correct |answer |-a |contract |that |idemnifies |another |against |loss, |damage |or |liability
|from |an |unknown |event.




Indemnify |- |correct |answer |-To |make |a |person |whole |by |restoring |that |person |to |the |same |financial
|position |that |existed |before |the |loss.




Policyowner |- |correct |answer |-The |insured


Premium |- |correct |answer |-A |set |amount |of |money |for |the |insurance


Insurer |- |correct |answer |-The |insurance |company


Insured |- |correct |answer |-Person |covered |by |insurance


Policy |- |correct |answer |-Legal |document |of |a |contract |of |insurance


Loss |- |correct |answer |-Reduction |in |the |value |of |an |asset


Claim |- |correct |answer |-Demand |for |payment |of |the |insurance |benefit |to |the |person |named |in |the
|policy




Risk |- |correct |answer |-Evaluated |by |two |things: |possibility |of |loss |and |the |uncertainty |of |whether
|or |not |the |loss |will |occur |



Uncertaintiy |of |financial |loss


Pure |Risk |- |correct |answer |-There |is |only |a |chance |of |loss |only |one |insurable


Speculative |Risk |- |correct |answer |-Involves |both |an |uncertainty |of |loss |and |gain

,Peril |- |correct |answer |-The |immediate |specific |event |causing |loss |and |giving |rise |to |risk, |cause |of
|risk




Hazard |- |correct |answer |-Any |factor |that |gives |rise |to |peril, |three |types


Physical |hazards |- |correct |answer |-Arise |from |material, |structural, |or |operational |features |of |a |risk
|situation. |(Slippery |Floors, |unsanitary |conditions |etc..)




Moral |hazards |- |correct |answer |-Arise |from |people's |habits |and |values, |filling |a |false |claim |ex


Morale |hazards |- |correct |answer |-Arise |out |of |human |carelessness |or |irresponsibility, |(failure |to
|take |safety |precautions)




Five |methods |for |dealing |with |risk |- |correct |answer |-S. |T. |A. |R. |R.


Sharing |- |correct |answer |-A |risk |that |cannot |be |avoided, |choosing |risk |as |a |means |of |handling |the
|risk, |by |sharing |risk |we |can |also |share |the |potential |losses.




Transfer |- |correct |answer |-Transferring |the |risk |of |loss |to |another |party, |usually |an |insurance
|company |more |wiling |to |bear |the |risk.




Avoidance |- |correct |answer |-Avoiding |the |risk |in |the |first |place, |not |undertaking |a |chance |that |can
|result |in |a |chance |of |loss




Reduction |- |correct |answer |-When |risks |cannot |be |avoided, |they |may |be |able |to |be |reduced
Reducing |the |potential |loss |that |might |occur |or |by |reducing |the |amount |the |potential |loss |if |it
|occurs




Retention |- |correct |answer |-Doing |nothing |about |the |risk, |people |assume |or |retain |the |overall |risk


Law |of |large |numbers |- |correct |answer |-Ability |to |make |predictions |of |losses |in |a |group |is |based
|upon |the |law |of |large |numbers

, Insurable |interest |- |correct |answer |-Person |having |legitimate |interest |and |can |benefit |from
|preservation |of |the |life |or |the |property |insured




Deductible |- |correct |answer |-The |initial |amount |of |a |covered |loss |that |the |insured |must |pay |In
|order |for |insurer |to |pay |for |the |remainder |of |the |claim




Elimination |period |- |correct |answer |-The |number |of |days |an |insured |must |be |disabled |before
|disability |income |benefits |become |payable




Co |insurance |- |correct |answer |-Within |a |specific |coverage |range |the |insured |and |the |insurer |will
|share |the |allowed |expenses




Property |insurance |- |correct |answer |-Protects |the |insured |against |the |financial |consequences |of |the
|direct |or |consequential |loss




Casualty |insurance |- |correct |answer |-Protects |the |insured |against |the |financial |consequences |of
|legal |liability |including |that |for |death,injury, |disability |or |damage |to |real |or |personal |property




Life |insurance |- |correct |answer |-Insurance |coverage |on |human |lives |including |endowments |and
|annuities |and |may |include |benefits |based |upon |accidental |death |or |benefits |for |disability




Annuity |- |correct |answer |-Provides |guaranteed |income |for |the |life |of |an |annuitant, |protecting |an
|individual |from |the |risk |of |living |to |long




Accident |and |health |or |sickness |insurance |- |correct |answer |-Protects |the |insured |against |financial
|loss |cause |by |sickness, |bodily |injury, |accidental |death, |and |may |include |benefits |for |disability

|income




Variable |life |and |variable |annuity |products |- |correct |answer |-Insurance |coverage |provided |under
|variable |life |insurance |contracts |and |variable |annuities. |Variable |carry |investment |risk |an |require

|an |insurance |license |and |a |securities |License




Credit |insurance |- |correct |answer |-Limited |line |of |insurance |protecting |the |insured |who |is |usually |a
|creditor, |if |unable |to |repay |debts |or |results |of |illness