Ch. 14 & 15 Economics Vocabulary

is a risk that may result in either financial gain or financial loss.

• Pure Risk

• Speculative Risk

• Financial Risk

• Psychological Risk

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

• Pure Risk

• Speculative Risk

• Financial Risk

• Psychological Risk

______________ is the amount the insured pays for insurance coverage.

• Insurance Policy

• Premium

• Claim

• Deductible

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

• Insurance Policy

• Premium

• Claim

• Deductible

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

• Insurance Policy

• Premium

• Claim

• Deductible

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.

• Insurance Policy

• Premium

• Claim

• Deductible

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

• Homeowner's Insurance

• Property Insurance

• Liability

• Depreciation

• Insurance Settlement

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

• Homeowner's Insurance

• Property Insurance

• Depreciation

• Insurance Settlement

• Liability

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

• Homework Insurance

• Property Insurance

• Liability

• Depreciation

• Insurance Policy

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

• Property Insurance

• Homeowner's Insurance

• Liability

• Depreciation

• Insurance Settlement