any losses arising out of robbery or theft will directly affect an individual. The insurance contract is the policy. Select the option to run ads for autoblog.com, by clicking either "turn off for this site", "don't run on pages on this domain", "allow this site" or similar. event giving birth to a loss) can be measured in monetary terms.The losses can be assessed and a proper money value can be given to those losses. But ads are also how we keep the garage doors open and the lights on here at Autoblog - and keep our stories free for you and for everyone. STUDY. It is the extent of unexpected results to be realized. Liquidity risk may cause loss of asset value on account forced sale of assets, more so if there is slump in the market. For example, an auto accident is an auto insurance risk, a policyholder's death is a life insurance risk, and water damage is a homeowner's insurance risk. Damage to the motor car due to … A particular risk is a risk that affects only individuals and not the entire community. An example of a particular risk includes an accident on the bus. It's simply that statistically, males are more likely to be in an accident than females and single drivers are more likely to be in an accident than those who are married. insurance doesn't usually cover this, encompasses wall major risks faced by a business, involve the possibility of a loss or reduction in income, expenses, or depletion of assets (premature death, insufficient retirement funds), possibility of losses dealing with theft or property damage (fire, tornado), financial loss resulting from physical damage, possibility of being held liable for damage to someone else... no maximum upper limit, individuals would have to maintain large emergency funds, process that identifies loss exposures faced by an organization and selecting techniques to treat such exposures, probable number of losses that may occur during a given time period, worst loss that could happen to the firm during its lifetime, techniques that reduce severity and frequency of losses, reduce the frequency of a particular loss... requiring truck drivers to pass safety course, reduce the severity of a loss after it occurs... keeping less money in a safe, the firm pays for part or all of the losses, dollar amount of losses that the firm will retain, deliberate chice to assume all or part of a loss, unconscious decision to assume all or part of a loss from ignorance or laziness, current net income: losses treated as expenses, part or all of a given loss exposure is retained by the firm... workers comp health benefits, pure risks are transferred to another party (contracts, leases, non competes), specified amount is subtracted from the loss payment otherwise payable to the insured, the insurer doesn't participate in the loss until the actual loss exceeds the amount a firm has decided to retain, the pooling of fortuitous losses by transfer of such risks to insurers, who agree to indemnify insurers, spreading losses incurred by the few over the entire group, pure risk is transferred from the insured to the insurer, tendency of people with a high chance of loss to seek insurance at standard rates, insurance handles already existing pure risk, insurance involves the transfer of insurable risks, insured must stand to lose financially if a loss occurs to prevent gambling, moral hazard, and to measure the amount of loss, substitution of the insurer in place of the insured, statements made by the applicant for insurance, offer and acceptance of the terms of the contract, only the insurer makes a legally enforceable promise, policy owner must comply with all policy provisions to collect for a covered loss, property insurance can't be assigned to another party without the insurers consent, any ambiguity is construed against the insurer, statements that provide information about the property to be insured, only covers perils specifically named in policy, all losses are covered except those losses specifically excluded, provisions in the policy that place limits on the insurers promos to perform, provisions that modifies the original contract in property and liability insurance, amends or changes the original policy in life and health insurance, provisions by which a specified amount is subtracted from the total loss payment, insured must pay a certain amount before the insurer makes a loss payment, all losses that occur during a specified time are accumulated to satisfy the deductible amount, property insurance contract encourages the insured to insure the property to a stated percentage of its insurable value... achieve equity in rating, portion of the rate needed to pay losses and loss adjustment expenses.... what it takes to break even, amount added to the pure premium for other expenses, profit, and a margin for contingencies, consists of the pure premium and a loading element, each exposure is individually evaluated and the rate is determined by the underwriter, exposures with similar characteristics are placed in the same class and act is charged the same rate, rates are adjusted up or down based on individuals experience, each exposure is individually rated... used in commercial property insurance, rate is adjusted up or down based on past lost experience, insured's loss experience during the current period determines the premium paid for the period, selecting, classifying and pricing applicants for insurance, sales and marketing activities of insurers, refusing to pay without conducting a investigation, primary insurer transfers to another insurer part or all of the potential losses, insurer that accepts the insurance from the ceding company, amount of insurance retained by the ceding company, amount off insurance ceded to the reinsurer, case by case method used when ceding company receives an application for insurance that exceeds its retention limit, primary insurer agrees to cede insurance to the reinsurer and reinsurer agrees to accept the business, maintains info on premiums, claims, investments ect, prepares financial statements and develops budgets, attorneys used in advanced underwriting and estate planing. 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