RMI 2101 Study Guide - Midterm Guide: Vehicle Insurance, Single Parent, Equa

• School: Temple University
• Department: Risk Management and Insurance
• Course: RMI 2101
• Professor: Michael Mc Closkey

Document Summary

Risk financing deals with sources of funds to pay for those losses. Seek external sources from 3rd parties to finance losses. Still have the asset or activity exposed to the loss. Transfer the financial responsibility for the loss, not the asset/activity itself. Transfer the financial responsibility of the loss to the insurer. But not the asset or activity itself. Ie: deer hitting car; risk of hitting deer is still the driver"s. Tenant is responsible for all the property losses while occupying the property. If the tenant fails in this responsibility, the owner is ultimately responsible for the losses. Ie: contractor doing project for you, vendor doing events. Company promises a firm doing work for them that they accept all responsibilities. City offers to pay fireworks company k, but they decline since damage to the bridge would cost more to rebuild in case something were to happen.