Ch. 14.2 Insurable Risk

Most people and businesses cannot afford to pay for large economic losses.

• True

• False

Insurance enables businesses and people to share the risk with other individuals or businesses.

• true

• false

The insurance company, called the ____, agrees to take on certain economic risks and to pay for losses if they occur.

The person or business for which the insurer (insurance company) assumes the risk is the _______.

The person or company buying the policy is the ____________.

• policyholder

• premium

• insurer

• claim

The amount the policyholder must pay for insurance coverage is a ______. (usually every 6 months or yearly)

• claim

• premium

• deductible

• deductible

A _____ is a policyholder's request for payment for a loss that the insurance policy covers.

In addition to offering financial protection for policyholders, insurance companies are also ___________.

• banks

• investment companies

• pawn shops

• credit unions

A(n) __________represents the insurance company and sells insurance policies to individuals and businesses.

• insurance agent

• actuary

• underwriter

• claims adjuster

__________ protects against losses from injury to people or property resulting from the products, services, or actions of a business.

• Health insurance

• Vehicle insurance

• Liability insurance

• Life insurance