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Pure risk : Type of risk that can be insured Speculative risk : Risk example: Antoine's new barber shop Peril : Event leading to a loss Proximate cause of loss : Immediate cause of loss, e.g., malfunction leading to damage Earnings : Profit: revenue minus expenses Cost of risk 2 | P a g e : All pure risk management costs Social responsibility : Objective pre- and post-loss in risk management Indemnify : Compensate for incurred loss Premium : Insurer's financial contribution ...

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18 páginas

Escrito en 2023/2024

Grado A+

ScholarsAscend

Name & Define the 2 types of Losses an Insured can face? : First Party - A loss experienced by the insured. Involves the insured, the insurer & a lien holder/mortgagee. Third Party- (aka liability coverage) A loss by a person who is not a listed member on the policy. Who is responsible for proving a loss? Who can report a loss, and to who? : The insured is responsible for proving a loss. Either an insured or a third party can report a loss to the broker or insurance company directly ...

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8 páginas

Escrito en 2023/2024

Grado A+

ScholarsAscend

Two types of losses insurers face : -First party. -Third party. Who is responsible for proving the amount of loss? : it is the insured's responsibility, but if the insurer thinks the amount is out of line then they must prove it. Who reports a loss and to whom do they report it? : A loss may be reported by an insured or third party to a broker/agent or directly to the insurance company. What is the first step an insurer takes concerning a reported loss? : before any action is taken,...

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10 páginas

Escrito en 2023/2024

Grado A+

ScholarsAscend

Areas of regulation for Intermediaries : Q-ualifaction (must pass test) O-peration of business (must follow requirements) L- Icences - Must have license L- icence Renewal - Renewed annual The Categories of insurance: : 1) Social -Workers Compensation 2) Life and Health Life, accident and sickness, and disability. 3) General property/casualty insurance Personal Property Boiler and Machinery Automobile Commercial property Crime 2 | P a g e Business interruption Liabilit...

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21 páginas

Escrito en 2023/2024

Grado A+

ScholarsAscend

What are the 3 general types of risk? : PeoPLe are risk! Personal, Property, Liability What does "insurance" mean? : When something gets cRuMPLEd, Indemnify! Indemnification, Risk, Money, Perils, Loss, Exposure How does insurance provide security? : It WIIPs risks ***********! Worries, Inconvenience, Indemnification, Premiums What do risk managers do? : They eat kIMChi! Identify, Measure, Control How does the insurance industry contribute to loss prevention? : It DiPs to RId us of R...

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19 páginas

Escrito en 2023/2024

Grado A+

ScholarsAscend

Explain how insurers get their products to the consumer through the independent agency and brokerage system, exclusive agency system and direct writing system (6) : Independent agency & brokerage -Large insurance companies appoint independent brokers to be their sales force and to bring clients to them. -They pay a commission for each policy they issue on behalf of the broker's clients -Client list usually belongs to the broker , not the insurer Exclusive Agency System -Market their ...

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13 páginas

Escrito en 2023/2024

Grado A+

ScholarsAscend

What are the components of risk? : Uncertainty Varying levels of risk Identify 3 general types of insurable risk that people are exposed to. : Personal Property Liability Which of the following statements is true about risk managers? : They determine what risks exist and what to do about them Which of the following is categorized as general insurance? : Liability insurance Only liability insurance of the options provided is considered general insurance. Employment insurance is a so...

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12 páginas

Escrito en 2023/2024

Grado A+

ScholarsAscend

Different types of insurance providers : 1) Organizations operating for the profit of their owners 2) Co-operative organizations operating for the benefit of their members only 3) Government insurance organizations 4) Captive Insurers Unearned Premium Reserve : a reserve fund of an insurance company or reinsurance company, representing the unearned premiums Outstanding Loss Reserves : funds set aside to pay for losses that have been incurred but not yet paid Mutual Insurance Company ...

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8 páginas

Escrito en 2023/2024

Grado A+

ScholarsAscend

What is RATEMAKING? : - Process of establishing rates for each class of insurance. - Determining the cost of a specified unit of insurance for a given period of time. *(MNQ) What is RATE (unit cost)? : - The price of a unit of insurance for a period of one year. - Expressed in dollars and cents or as a percentage. *(MNQ) What is PREMIUM? : - Total cost of an insurance policy. - Calculated by multiplying the rate times the amount or term of insurance purchased. What is difference between...

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15 páginas

Escrito en 2023/2024

Grado A+

ScholarsAscend

True or False: A broker is an independent business person who places all business with one insurer. : False The subject of an insurance contract is ______. : Risk True or False? A peril is an event that may cause a loss to occur. : True A contract of insurance is between the insured and the _____. : Insurer True or False? Risk is the chance of loss. : True 2 | P a g e The two types of hazards are ______ and ______. : Moral, physical. The two classifications of risk are ______ and...

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12 páginas

Escrito en 2023/2024

Grado A+

ScholarsAscend

Risk : Uncertainty about an outcome, event might occur and it might not be favorable, the possibility of loss Differentiate between risk and chance : chance can have a good outcome whereas risk is always negative Peril : Event that gives rise to a loss. Beyond anyone's control. Examples are fire, theft, storm, explosion, acident, flood and vandalism Hazard : Factor that influences outcome of a loss. Hazards can increase likelihood of a peril occurring or make results more serious. ...

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13 páginas

Escrito en 2023/2024

Grado A+

ScholarsAscend

Intermediaries : -insurance agents -brokers Independent Agency System : a system of marketing insurance through independent contractors (agents) who sell insurance on a commission or fee basis with one of more insurers Independent Brokerage System : a system in which independent insurance professionals, licensed as insurance brokers, are contracted to sell insurance on behalf of an insurer or multiple insurers Exclusive Agency Companies : a system of marketing insurance through agen...

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5 páginas

Escrito en 2023/2024

Grado A+

ScholarsAscend

Risk : The chance of loss. Specifically, the possible loss or destruction of property or the possible incurring of a liability. Types of Insurable Risk : 1) Personal Risks 2) Property Risks 3) Liability Risks Personal Risks : encompass the chance of loss arising from a person's own bodily injury, loss of life, or loss of income because any of the following: death, physical disability, old age, unemployment Property Risks 2 | P a g e : encompass the chance of loss arising from t...

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9 páginas

Escrito en 2023/2024

Grado A+

ScholarsAscend

insurance : A contract which one party the insurer, for monetary consideration agrees to reimburse another, the insured, for loss or liability for a loss on a defined subject caused by specific hazards or perils. risk : The chance of loss. Specifically, the possible loss or destruction of property or the possible incurring of a liability. Sometimes referred to as the subject of an insurance contract objectives of risk management: pre loss : those to be met before a loss occur

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2 páginas

Escrito en 2023/2024

Grado A+

ScholarsAscend

Indemnify : to provide compensation for loss or expenses incurred Contract : an agreement or promise between two or more persons that is intended to be legally enforceable and is constituted by the acceptance by one party of an offer made to him by the other party, to do or to abstain from doing a specific act Agent : a person who is employed or authorized to act on behalf of another Broker : a licensed independent person or firm who acts on behalf of an insured in placing business ...

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4 páginas

Escrito en 2023/2024

Grado A+

ScholarsAscend

Which type of risk can be insured? : Pure risk - Pure risk entails a chance of loss but no chance of profit. Insurance is concerned only with pure risk. Paul opens up a new barber shop on a busy downtown street and expects to earn a big profit. What is this an example of? : Speculative risk - Speculative risk exists where there is either a chance of loss or a chance of profit. Identify an example of peril. · Explosion resulting in fire · Loose carpet on stairs · Obsolete machine...

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5 páginas

Escrito en 2023/2024

Grado A+

Axpert

Three types of risk : Personal Property Liability Examples of personal risk : premature death physical disability old age unemployment Examples of property risk : clothes sports equipment electronics books 2 | P a g e Examples of liability risk : you cause injury to others you damage the property of others injuries to others occur on your property your children cause injury/damage your pets cause injury/damage Indemnify : return to the same financial position as just prior...

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18 páginas

Escrito en 2023/2024

Grado A+

Axpert

Two types of losses insurers face : -First party. -Third party. Who is responsible for proving the amount of loss? : it is the insured's responsibility, but if the insurer thinks the amount is out of line then they must prove it. Who reports a loss and to whom do they report it? : A loss may be reported by an insured or third party to a broker/agent or directly to the insurance company. What is the first step an insurer takes concerning a reported loss? : before any action is taken,...

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10 páginas

Escrito en 2023/2024

Grado A+

Axpert

Pure risk : Type of risk that can be insured Speculative risk : Risk example: Antoine's new barber shop Peril : Event leading to a loss Proximate cause of loss : Immediate cause of loss, e.g., malfunction leading to damage Earnings : Profit: revenue minus expenses Cost of risk 2 | P a g e : All pure risk management costs Social responsibility : Objective pre- and post-loss in risk management Indemnify : Compensate for incurred loss Premium : Insurer's financial contribution ...

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18 páginas

Escrito en 2023/2024

Grado A+

Axpert

Name & Define the 2 types of Losses an Insured can face? : First Party - A loss experienced by the insured. Involves the insured, the insurer & a lien holder/mortgagee. Third Party- (aka liability coverage) A loss by a person who is not a listed member on the policy. Who is responsible for proving a loss? Who can report a loss, and to who? : The insured is responsible for proving a loss. Either an insured or a third party can report a loss to the broker or insurance company directly ...

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8 páginas

Escrito en 2023/2024

Grado A+

Axpert