Resuming operations to some extent after an adverse event; not necessarily returning to the condition that existed before loss.
What is Survival?
100
Probability that is based on theoretical principles rather than on actual experience.
What is Theoretical Probability?
100
The most frequently occurring value in a distribution.
What is the Mode?
100
CPCU
What is Chartered Property Casualty Underwriter?
100
This is the cost to replace property with new property of like kind and quality less depreciation.
What is Actual Cash Value?
200
The risk management program should assure managers that whatever might happen will be within the bounds of what was anticipated and will be effectively treated by the risk management program.
What is Tolerable Uncertainty?
200
A probability measure that is based on actual experience through historical data or from the observation of facts.
What is Empirical Probability?
200
The weighted average of all of the possible outcomes of a theoretical probability distribution.
What is Expected Value?
200
SIR
Self-Insured Retention
200
This reduction in value can be caused by fashion, technological changes, or other factors that occur rapidly and suddenly.
What is Technological Depreciation?
300
No loss can be allowed to interrupt the organization’s operations for any appreciable time.
What is Continuity of Operations?
300
A probability distribution with a finite number of possible outcomes and are typically used as frequency distributions.
What is a Discrete Probability Distribution?
300
The average of the differences between the values in a distribution and the expected value of that distribution.
What is Standard Deviation?
300
ACV
What is Actual Cash Value?
300
This method is sometimes used when replacing buildings or personal property with property of like kind and quality is not practical and when the ACV method does not match insurance needs.
What is Functional Valuation?
400
The organization should not incur substantial costs in exchange for slight benefits.
What is Economy of Operation?
400
A probability distribution with an infinite number of possible outcomes and are typically used as severity distributions.
What is a Continuous Probability Distribution?
400
A measure of dispersion calculated by dividing a distribution's standard deviation by its mean.
What is Coefficient of Variation?
400
COPE
What are Construction, Occupancy, Protection, and External Environment?
400
This valuation method is commonly used in insurance policies covering buildings and in many policies covering personal property.
What is Replacement Cost?
500
The risk management program should help the organization act ethically and fulfill its obligations to the community and society.
What is Social Responsibility?
500
A properly constructed probability distribution must contain these types of outcomes.
What are Mutually Exclusive and Collectively Exhaustive?
500
The level of confidence that available data can accurately indicate future losses.
What is Credibility?
500
DICE
What are Declarations, Insuring Agreement, Conditions, and Exclusions?
500
A method for determining actual cash value based on court decisions that require all relevant factors to be considered.