chapter 2 Flashcards
1
Q
Accident, health, property, and casualty insurance contracts are all contracts of
A
indemnity
2
Q
principle of actuarial science that states that the higher the number of risks insured in the same risk pool; the more predictable losses become.
A
law of large numbers
3
Q
something that can cause a financial loss.
A
peril
4
Q
unintentional decrease in the value of an asset due to a peril.
A
loss
5
Q
when a person or property is damaged, destroyed, or killed by a peril, without any intervening cause.
A
direct loss
6
Q
any event that causes a loss
A
occurrence
7
Q
average potential for loss.
A
standard risks
8
Q
considered to be a poor risk for the insurance company and have a higher potential for loss.
A
substandard risks
