Master this deck with 30 terms through effective study methods.
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A method to pool resources to cover potential losses.
An unexpected reduction of something of economic value.
The cause of loss, such as fire or theft.
A circumstance that increases the likelihood of a loss.
Moral hazards involve character integrity, while physical hazards are tangible conditions.
The chance of loss without any opportunity for gain.
Involves both the chance of loss and the possibility of gain.
Avoidance, Retention, Sharing, Reduction, Transfer.
Shifting potential loss from one party to another.
Social insurance is mandatory and benefits are prescribed by law.
Legislation providing retirement and disability benefits since 1935.
The benefit amount based on average earnings before retirement.
Insurance guaranteeing a sum to a beneficiary upon the insured's death.
An investment providing fixed or variable income payments over time.
Restoring the insured to their financial condition before a loss.
Contracts where only one party makes enforceable promises.
Contracts requiring certain conditions to be met for claims to be paid.
Coverage for a specified number of people under a master contract.
A group insurance plan where the employer pays 100% of the premium.
A group insurance plan where costs are shared between employer and employees.
An insurer owned by policyholders who share in profits.
An insurer owned by shareholders who profit from stock value changes.
An insurer owned by a parent company to cover its own risks.
A principle allowing insurers to predict losses based on large groups.
The process of selecting and classifying risks for insurance.
Risks that are uncertain, measurable, significant, and not catastrophic.
To solicit applications and assist clients in obtaining insurance.
Agents represent insurers, while brokers represent clients.
To avoid immediate coverage for new employees.
Coverage extending to the insured's spouse, children, and other dependents.