| A | B |
|---|
| risk | possibility of incurring a loss |
| personal risk | illness, disability, loss of income, unemployment, old age, death |
| property risk | theft, wind, fire, flood |
| liability risk | losses to others that occur as a result of injury or damage that you caused |
| insurance | planned protection provided by sharing economic losses |
| insurance companies | businesses that provide protection against losses |
| policyholder or insured | person who could incur a risk |
| policy | contract to cover insured |
| premium | amount insured must pay for coverage |
| claim | policyholder's request for payment |
| deductible | amount you must pay before insurance company will pay |
| self-insurance | assuming the total risk of loss on your own |
| co-insurance | sharing expenses by policy holder & insurance company |
| insurance agent | person who sells insurance |
