| A | B |
|---|
| risk | the possibility of incurring a loss |
| riswk management | systematic process of managing risk to achieve set objectives |
| personal risk | results in personal losses |
| property risk | loss of personal or business property including money, buildings and vehicles |
| liability risk | Harm or injury to other people or their property because of your actions |
| non-economic risk | May result in embarrassment or inconvenience without financial impact |
| pure risk | Threat of a loss without an opportunity for gain |
| speculative risk | Offers the chance of gain or loss |
| controllable risk | Occurs when conditions can be controlled to lessen the chance of harm |
| uncontrollable risk | cannot be controlled or reduced by your actions |
| insurable risk | meets criteria of an insurance company for coverage |
| unpredictable amount of loss | example: A competitor of Staples, an office supply store, moved right across the street |
| avoid the risk | Declining to engage in particular activities |
| transferring the risk | allowing someone else to assume the risk |
| insure the risk | purchasing insurance to cover risk |
| assume the risk | finishing an activity and accepting full responsibility |
| health insurance | provides protection against the high costs of individual health care |
| disability insurance | provides protection against the high costs of individual health care |
| life insurance | pays the amount of the insurance policy upon the death of the insured |
| hospital insurance | classified as medical insurance; Covers for most or all of the charges during a stay in the hospital |
| surgical insurance | covers all or part of the surgeon’s fees for an operation |
| regular medical insurance | covers fees for nonsurgical care given in the doctor’s office, the patient’s home, or a hospital |
| major medical insurance | covers cost of extended and specialized care out of the hospital such as medicine and special nursing care |
| comprehensive medical policy | combines the features of hospital, surgical, regular, and major medical insurance |
| dental insurance | Covers examinations, X rays, cleaning and filling |
| vision insurance | covers eye examinations, prescription lenses, frames, and contact lenses |
| group health insurance | companies pay part or all of the premium for their employees |
| HMO (Health Maintenance Organization) | members are entitled to a wide range of prepaid health care services, including hospitalization. |
| PPO (Preferred Provider Organization) | provides a group of physicians, a clinic, or a hospital that contract with an insurance company |
| Atate Government Assistance | Workers Compensation that provides medical and survivor benefits for people injured, disabled, or killed on the job. |
| life insurance | protects survivors against financial loss associated with death |
| term life insurance | Provides financial protection from losses resulting from a death during a definite period or term |
| permanent life inswurance | Has cash value and an investment feature; |
| group life insurance | Individual is covered by their employer; covers a group of people |
