Worksheets25.1 Understanding Risk
Total questions: 34
Worksheet time: 17mins
Risk is a state of certainty where some of the possibilities may result in loss or another undesirable outcome
True
False
The likelihood that something will or will not happen
Risk
Certainty
Uncertainty
Chance of loss with no chance for gain
Unpure risk
Straight risk
Pure risk
Risk management
Pure risk are...
planned
random
normal
random and always result in loss
Which risk may result in either gain or loss
Personal Risk
Insurable Risk
Property Risk
Speculative Risk
Making an investment to help offset against loss is called
Investing
Hedging
Peaking
Insurable interest
Which risk may result in gain or loss and is based on the changing economic conditions
Economy Risk
Insurable Risk
Economic Risk
Peak Risk
What is it called when the economy slows down
Peak
Recession
Recovery
Growth
What happens during a recession that causes businesses to suffer
People lose jobs and are unable to purchase goods and services
There is a ban on sales
Some businesses are just lazy and don't push their sales
Which business cycle is a time when the economy has hit the top and things are going fast
Peak
Recession
Growth
Decline
What is the period when the economy has hit the bottom and things are moving slow
Recovery
Peak
Decline
Trough
When a period of time when the economy is growing and jobs are being created
Peak
Recovery
Decline
Trough
What gives you a method of spreading individual risk among a large group of people to make loss affordable for all
Recovery
Insurance
Loans
Simple Risk
Most common risk(s) among teenagers
car accidents
Car accidents and theft
Theft
Relationships
A pure risk that is faced by a large number of people and for which the amount of the loss can be predicted
Personal Risk
Liability Risk
Property Risk
Insurable Risk
What is insurable interest
Any financial interest
Any financial interest in life or property
Financial interest in life or property that would cause you to suffer financial if the life or property is lost
We each face risk everyday
True
False
This risk is the chance of loss involving your income and standard of living
Liability risk
Property risk
Personal risk
Which insurance covers personal risk
Life insurance
Life and Health Insurance
Life and Disability Insurance
Life, Health and Disability Insurance
Property risk includes
Car and Home
Home and possessions
Home, car and possessions that can be destroyed or damaged by fire, theft, wind, rain, accident and other hazards
Anything that can be destroyed
What risk is the change of loss or harm to personal or real property
Property Risk
Personal Risk
Liability Risk
The chance of loss that may occur when your errors or actions result in injuries to others or damages to their property
Property Risk
Liability Risk
Personal Risk
Someone slips on your step and fall. When they sue you, which coverage with protect you
Liability insurance
Personal risk insurance
Property insurance
Another name for Insurance Company
Creditor
Insurer
Insured
Casualty
Another name for the purchased insurance policy
premium
contract
agreement
The insurance fee you pay
policy
contract
premium
installment
Another name for the insured
Insured
policyholder
creditor
debtor
A specialist in insurance calculations and statistics
Statistician
Actuary
Agent
Amount stated in a life insurance policy to be paid upon death
Premium
Cash Valve
Face Amount
Loss Value
Person named on a policy to receive the benefits from the policy
Spouse
Beneficiary
Co-Insured
Purpose of insurance
To enrich
Compensate for actual loss
Make a profit
Loss to insurer
How can the insurer make a profit
Collect more premiums than it pays out
Balance losses and operating expenses
Refuse to pay out for lossess
Find loop holes in insured losses
What is putting the policyholder back in the same financial condition as before the loss
Balance
Coverage
Deductible
Indemnification
How are premiums set or based
Statistical probability of the likelihood of potential losses
age, race and location
Prior losses in the area
