| A | B |
|---|
| Risk | chance of finacial loss from perils to people or property |
| Insurance | Method of spreading individual risk among a large group of people |
| Insurer | Business that agrees to pay teh cost of potential future losses in exchange for payments |
| Written insurance contract | Policy |
| Premium | Payments for insurace coverage |
| Policyholder | Owner of the policy |
| Indemnification | Putting the policy holder back in the same finacial conditions they were in before the loss |
| Probability | Mathematics of chance and the root of indemnification |
| Actuarial Table | Table of premium rates based on ages and life expectancies |
| Actuary | Specialist in insurance calculations and statistics |
| Beneficiary | A person named on an insurance policy |
| Benefits | Sums of money paid for specific types of losses under the terms of the policy |
| Cash Value | Amount of money payable to a policyholder upon discontinuation of life insurance policy |
| Claim | Policyholder's request for reimbursment for a loss under the terms of a policy |
| Coverage | Protection provided by the terms of an insurance policy |
| Deductable | Amount of a loss that the policyholder pays before teh insurer is obligated to pay anything |
| Exclusions | Specified losses that the insurance policy does not cover |
| Face Amount | amount stated in a life insurance policy to be paid upon death |
| Grace period | Additional time after teh premium due date that the insurer allows the policyholder to make the payment w/o penalty |
| Hazard | Condition that creates/increases the likelihood of some loss |
| Insurance Agent | Professional insurance salesperson |
| Insured | Person or company protected against loss |
| Loss | Unexpected reduction in value of the insured's property caused by a covered peril |
| Peril | Event whose occurrence can cause a loss |
| Proof of Loss | Written verification of the amount of a loss that must be provided by the insured to the insurere before a claim can be settled |
| Standard Policy | Contract form that has been adopted by many insurers |
| Unearned Premium | Portion of a paid premium that the insurer has not yet earned because the policy term has not ended..returned if policy is canceled |
| Insurable | Risk must have potential to result in serious finacial losss not under the control of the insured |
| Personal risks | Chance of loss involving your income and standard of living |
| Property risks | Loss or harm to personal or real property |
| Liability risks | Chances of loss that may occur when your errors or inappropriate actions result in bodily injury to someone else or to someone elses property (damage) |
| Pure risk | Chance of loss with no chance for gain |
| Speculative risk | Risk that can result in either a gain or loss (investing in stocks) |
| Insurable interest | Finacial interest in life and property such that if lost or harmed insured would suffer finacially |
| Risk Management | Organized strategy for controlling financial loss from pure risks |
| Risk avoidance | Eliminate the chance for loss |
| Risk reduction | Take measures to lessen the frequency of losses |
| Risk assumption | Establish a monetary fund to cover the cost of a loss |
