Module 7 Flashcards
(37 cards)
Module 7 Overview
- Describe risks faced by individuals along three elements of a loss exposure
- Apply risk management process to individual risks
- Describe the problem in the –US healthcare system outlined by the “smart” pills reading
- Explain some of the ethical considerations involved with cognitive enhancements
Lots of ways (categories of looking at risk at the individual level)
- Property (also have financial components, ex of overlap)
- Liability
- Life
- Health
- Financial
- Why categorize?
- R.M technique
- Categories are not mutually exclusive, and some of them overlap
Loss exposure
- Any condition or situation that presents a possibility of loss, regardless of whether that loss actually occurs.
Three Elements to a los exposure
- Asset exposed to loss
- Cause of loss
- Financial consequences of the loss
Property
Asset exposed to loss
- Real Property
- Land, buildings, crops, etc
- Personal Property
- Your stuff: furniture, jewelry, art, autos, watercraft
Property- Cause loss
-Fire, theft, windstorm, accidents, lost, pretty much anything you can think of
Financial consequence
- Reduction in property value
- Increased expenses (ex car- going in the shop, car, Ubers when its broken)
- Lost income (Income that is generated by that property, ex car as uber and now u can use it)
Liability
Asset exposed to loss
-Usually lose money or other financial assets
Juries award what kinds of damages
General- Noneconomic damges (ex- backhurts, how much is that worth)
Special- Economic damages (ex- amount of damage to your vehicle, salary lost by not working for a 2 weeks)
Punitive damages- Punishment payments.
Causes of Loss
Claim / Lawsuit Civil law (Large amount of evidence, not free) vs Criminal Law (beyond reasonable doubt, OJ free)
Causes of Loss Pt. 2
Tort, contract, statutory
Negligence (didn’t properly secure air conditioner, falls out and hits someone off the head)
Statutory
Violate a statute (speed limit)
Contract
Violate terms of contract (destroy your apartment, lease)
Tort
Can still be held liable even though it may not be your fault, no law or statue may apply. (Driving see kid in road swerve and hit other car)
Financial Consequences
-Defense cost
-Monetary damages
(barfight, sued, hire lawyer, pay 5G)
Specific types of liability
- Property owners
- Automobiles (misuse of car)
- Employer-employee
- Parents and children
- Animals
Example of liability for property owners
Attractive nuisance.
- Pool
- According to FL law a pool is an attractive nuisance if a local kid wanders into your pool an drowns, you are held liable.
- Therefore a fence must be placed around and locked up in a heigh to reach place
Life-Premature Death
***Death with financial responsibilities remaining Asset exposed to loss - Your life Cause of loss -Premature death:illnes, accident, etc -Financial Consequences
Financial Impact of Premature Death
If single/young financial tragedy is not as bad. Wage earning adult: -Married -Single w Dependents (biggest risk) -Single w no dependents (not that big)
Non-wage earning adult:
- Married
- Singles with dependents
- Single with no dependents
-Child (financial impact is not that big)
Life: Long Life
Asset exposed to loss
-Your savings/ retirement/ wealth
- Cause of Loss
- Outliving how long you expected yourself to live
Life- Long Life Pt. 2
Financial Consequences
- Income
- Expenses
- Which increase
- Which decrease
How do you know ho much to save
- Retirement Calculator
- Social Security, benefits
Health
Asset exposed to loss
-Your livelihood, health
Cause of Loss
-Poor care, bad genes, bad luck
Financial Consequences
- Ability to earn income may decrease, or cease
- Living expenses may continue/increase
Financial (crisis)
Asset exposed to loss
-your wealth
Cause of Loss
-Health, disability, unemployment
Financial Consequences
- Inadequate savings
- Back to work, can’t retire
