Definitions
_______ is a contract that protects (indemnifies) a person against loss, damage, or liability arising from an unknown event.
Insurance is a contract that protects (indemnifies) a person against loss, damage, or liability arising from an unknown event.
a) Predictive Risk
b) Speculative Risk
c) Dividend Risk
d) Pure Risk
b) Speculative Risk
d) Pure Risk
Which is not one of the 3 main types of insurance companies.
a) Private Commercial Insurers (for-profit companies)
b) Mutual Insurance Company
c) Private Noncommercial Insurers (nonprofit organizations)
d) The Federal Government
b) Mutual Insurance Company
______ is restoring an insured to the same financial condition as before the loss.
Indemnity is restoring an insured to the same financial condition as before the loss.
What is considered the largest insurance company since Medicare and Social Security that cover every working citizen?
The Federal Government
A ______ is a policy purchased by an individual or entity that in exchange for paying premiums, receives financial protection and/or reimbursement against losses from an insurance company.
A Contract is a policy purchased by an individual or entity that in exchange for paying premiums, receives financial protection and/or reimbursement against losses from an insurance company.
A _____ is a contract with the insurance company (insurer) that states what the policyowner (insured) must pay for and what they agree to cover if damage or loss occur.
A Policy is a contract with the insurance company (insurer) that states what the policyowner (insured) must pay for and what they agree to cover if damage or loss occur.
A policy is purchased for a fee called a _______, which is a set amount that must be paid monthly, semi-annually, or annually.
A policy is purchased for a fee called a Premium, which is a set amount that must be paid monthly, semi-annually, or annually.