New Mexico Health And Life Insurance Exam 63 Questions And Answers Set 03
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Terms in this set
63
risk
Risk
hazard
A hazard is a condition that makes a peril more likely to happen or that increases the seriousness of a loss
hazard
Any factor that gives rise to peril
peril
cause of loss
Peril
And immediate specific event causing loss in giving rise to risk
Physical Hazard
Arises from material structural for operational features such as a slippery floor or unsanitary conditions
Moral hazard
Arises from people's habits and values such as filing a false claim
Morale Hazard
Arises from human carelessness or a responsibility such as bailing to take safety precaution
loss
Last must be measurable, the insurer must be able to place a specific monetary value
Methods of Handling Risk
Avoidance
Retention
Sharing
Reduction
TransferAvoidance
Retention
Sharing
Reduction
TransferAvoidance