Management and Organizational Studies 2277A/B Chapter Notes - Chapter 8: Vehicle Insurance, Psych, Underinsured

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 2277A/B
• Professor: Barry Hawn

Document Summary

Lt care = ensure you have access to benefits that will help cover added living costs, in home nurse. Life = ensure financial support for your dependants, other individuals, or charities when you die. Primary function of insurance = maintain your existing level of wealth by protecting you against potential financial losses or liability as a result of unexpected events. Accept risk accept by not seeking to limit exposure feasible when likelihood of event that would cause a financial loss is very low and potential financial loss due to event is small. Psych behind accepting risk accept risk rather than pay for insurance because they don"t feel much satisfaction from buying insurance perceive insurance as waste of money. May have mindset that they will be careful and avoid any undesirable event that would require insurance. While you incur annual insurance expenses from premiums, you are protected from financial losses resulting from covered perils peril = hazard or risk you face.