front 1 Underwriting | back 1 Insurer weights potential health risk in its pool of people compare to potential loss of providing coverage - allowed to ask pre-existing health questions (decide to accept, deny & cost) |
front 2 Risk | back 2 Likelihood that an insured event will occur, requiring the payment of a claim (from insurer) "possibility of a loss" |
front 3 Peril: Cause of a loss ex: fire | back 3 Hazard: condition that increases the odds of a loss ex: fireplace or fire pit |
front 4 "Due to chance" | back 4 potential of accidental loss, the loss must be the result of an unintended action & must be unexpected time & impact Insurers only pay out these claims |
front 5 Definiteness and Measurability | back 5 show definite proof of loss: bills, if cost can't be calculated or identified it's not insurable. |
front 6 Statistically Predictable | back 6 like a game. How often a loss occurs & severity. more frequent & higher severity have higher premiums |
front 7 Not catastrophic "cat" | back 7 Not insurable.(exclusion) |
front 8 Pure risk - involves situations where the only outcome is loss, where there is no opportunity for gain. | back 8 Speculative risk - happens when there is an uncertain potential for gains or losses. (hard to anticipate "exacts") |
front 9 Risk Treatment an action taken to manage risk (identify, assess, treat risk) | back 9 5 types of risk treatment:
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front 10 Underwriting - policy renewal | back 10 - underwriting only done once. Contract provisions & state Insurance laws prohibit raise in premiums once policy is in force. |
front 11 Domestic Violence Victim | back 11 Can't deny coverage to person, refuse to renew their coverage, cancel coverage or charge them a different amount than others in their group for same coverage. |