SBM II Exam 3 Insurance

the depreciated value of a property

contract that pays monthly income to insured while alive

Mutual insurance company in which losses are shared by policyholders

a policy that covers many items of the same kind in different places

protects against employees' crimes

the cost to replicate property at today's prices

a form of risk retention in which a part of a firms earnings is designated as a cushion against possible future losses

contract that transfers risk of financial loss for a fee

company writing insurance

person who receives proceeds of life insurance

written contract of insurance

factors that contribute to uncertainty

addition to insurance policy that modifies, extends, or limits base contract

willful failure to disclose pertinent information

misstatement of material fact

right of insurer to assume rights of insured

contract whereby insurer assumes risk of death of insured for specified time

has no cash value whenever the policy expires the only value is in the event that death occurs during the life of the policy

contract of insurer to pay money on death of insured

provides death benefits to the survivors of the insured

decreasing term insurance plus savings account

30 or 31 day period in which late premium may be paid without policy lapsing

insurance covering loss of profits while business building is repaired

coverage pays for lost income and other expenses related to recovery

policy that requires insured to prove loss sustained

policy that fixes values for insured items

coverage no matter where property is located

taking property by force

protects a firm against losses due to the death of a key employee. usually term life insurance.

protects firms against claims that its products cause bodily injury or property damage to end user

all efforts that are designed to preserve assets & earning power associated with the business

protects you from losses arising from the destruction of property

type of loss for which the policy will pay

the kinds of loss that the policy will not cover

maximum amounts of coverage that are provided for

amounts used to reduce the cost of your insurance. If you accept a deductible, you are assuming some of the loss, and insurance will cover only losses above the deductible amount

limits the amount that's recoverable from a claim to the stated coverage or the actual amount of loss. whichever is less. prevents excess insurance coverage for profit

protects your business against injuries or other kinds of damage for which you and your business may be legally responsible

used to insure that outstanding debt will be paid in the event of death of a customer

protects you against losses when a purchaser does not insure goods purchased on credit; guarantees that you will be able to collect payment from those goods

used to provide protection for a specific type of property or coverage

policy that continues until age one hundred or death, whichever occurs first

covers only the hazards enumerated in the policy

Strategies available to cope with risks include?