Ch. 14 & 15 Economics Vocabulary

Front

What is a risk that may result in either financial gain or financial loss? Options: Pure Risk, Speculative Risk, Financial Risk, Psychological Risk

Back

Speculative Risk

Front

a risk with a possibility of loss but no possibility of gain.

Back

Pure Risk

Front

______________ is the amount the insured pays for insurance coverage.

Back

Premium

Front

____________ is the amount the insured is responsible for paying when a claim is made.

Back

Deductible

Front

_________ is the process of documenting a loss against an insurance policy.

Back

Claim

Front

What is a contract that defines the type of losses that are covered, amount of coverage in dollars, and other conditions to which the two parties agree?

Back

Insurance Policy

Front

the state of being responsible for something, especially by law.

Back

Liability

Front

a decrease in the value of property as a result of age or wear and tear.

Back

Depreciation

Front

insures the policyholder against financial loss due to damage to or loss of a dwelling and personal property and possessions.

Back

Property Insurance

Front

insurance protects a homeowner if others are injured on the policyholder’s property.

Back

Homeowner's Insurance