COMMERCE 4FP3 Lecture Notes - Lecture 8: Home Insurance, Liability Insurance, Vehicle Insurance
12 Mar 2019
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Insured: a person covered by an insurance policy: policyholder: person who owns an insurance policy. Speculative risk: risk that carries a chance of either loss or gain: e. g. , gambling, starting a small business. Risk management methods: organized strategy for protecting assets and people, 4 general risk management techniques: Installing smoke alarms or fire extinguishers: wearing a seatbelt to avoid serious injuries if you are in an accident, risk assumption: taking on the responsibility for the loss or injury. Self-insurance: process of establishing a monetary fund to cover the cost of a loss: doesn"t eliminate risks, only means covering losses, risk shifting: transfer the cost of the loss to an insurance company. Step 2: develop a plan to reach your goals. To put your risk management plan to work ask yourself: Step 4: review your results: remember that your needs change throughout your life cycles.
