Category: Insurance Show
1. Life and Health Test Flashcards – Insurance – QuizletWhen an individual purchases insurance, what risk management technique is he or she practicing? Retention Transfer Avoidance Sharing. Transfer.(1)… When an individual purchases insurance, what risk management technique is he or she practicing? A. Sharing. B. Retention. C. Transfer. D. Avoidance.(2)… The most common example of risk transfer is insurance. When an individual or entity purchases insurance, they are insuring against financial risks.(3)… Basic Insurance Concepts and Principles Flashcards – CheggWhen an individual purchases insurance, what risk management technique is he or she practicing? Transfer. Insurance is a transfer of the risk of financial loss (4)… A health insurance risk pool is a group of individuals whose medical costs in which people can choose whether and when to purchase insurance coverage, (5)… Individuals transfer part of a pure risk to an insurer. For example, homeowners purchase home insurance to protect against perils that cause damage or loss.(6)… 2. Transfer of Risk Definition – InvestopediaRisks may be transferred between individuals, from individuals to insurance companies, or from insurers to reinsurers. When homeowners purchase property (7)… Risk transfer is a risk management and control strategy that One example is the purchase of an insurance policy, Since individual state laws.(8)… Insurance – WikipediaCo-insurance – risks shared between insurers; Dual insurance – having two or more policies with overlapping coverage of a risk (both the individual policies (9)… Health insurance, Employers and individuals, Medical expenses are incurred Not all of those who purchase insurance face the same risks.(10)… Risk aversion and the purchase of risky insuranceby H Schlesinger · 1987 · Cited by 54 — paying indemnities for their claims. If there exists a chance that the individual will not be indemnified following a loss claim, then the purchase (11)… Many insureds purchase a policy without understanding what is covered, It identifies who is the insured, what risks or property are covered, the policy (12)… 3. Risk Management & InsuranceI insure the remainder of the risk by purchasing collision insurance with a $500 deductible. or you can invest in a small number of individual stocks.(14)… by D Mayers · 1982 · Cited by 1164 — corporate demand for insurance is risk aversion. (essentially for the same reasons individuals purchase insurance) than corporations with.(15)… The Demand for Insurance with an Upper Limit on Coverageby JD Cummins · 2004 · Cited by 93 — individual purchases insurance. This market with risk-neutral insurers and. OPTIMAL INSURANCE DESIGN. An optimal insurance contract maxim.(16)… by M Eling · 2021 · Cited by 3 — We use both individuals’ financial risk preferences and risky asset ownership the association between risk aversion and individuals’ insurance purchase (17)… RISK RETENTION AND PURCHASING GROUP HANDBOOK. TABLE OF CONTENTS through a pool for physicians or dentists who had individual insurance from an insurer.(18)… Definitions of Insurance TermsThe right, real or alleged, of an individual or corporation to recover for of the risk of loss to the insurance company in exchange for a certain cost.(19)… encouraging risk taking and creating and ensuring economic growth. Beyond the commercial world, insurance is vital to individuals. Lack of insurance.(20)… 4. Insurance Agents (General) Question Bank – English6 In the Concept of Insurance, Risk always implies a –. 12 — Risks cannot be insured. an Individual, when He or She purchases the Insurance.(21)… The surplus lines market exists to insure risks that licensed in the state where the policyholder or the risk to be insured is located.(22)… Property–Casualty Insurance Basics – AIGfor these purchases. Without insurance Insurers also purchase general obligation propriate method for treating all risks facing individuals and.(23)… 5. Contract law – insurance – Encyclopedia BritannicaLiability insurance may be purchased to cover these contingencies. Legal liability exists when an individual commits a legal injury that wrongly encroaches on (24)… Many types of pure risk are dealt with by purchasing insurance coverage for Personal pure risks are risks affecting an individual that result in a loss (25)… Florida Statute 626.9541(1) – Online SunshineAny individual, isolated, nonrecurring unadvertised transaction not in the regular course of business. e. Title insurance. f. Any purchase agreement involving (26)… Utilize the corresponding insurance requirement attached at the bottom of the Contact Risk Management to confirm if your purchase falls within this (27)… Purchasing Group – California Department of Insuranceand the California Risk Retention Act (California Insurance Code Section 125, Please note that this obligation of the purchasing group is separate and (28)… (2) The Government reserves the right to disapprove the purchase of any insurance insurance policies or by inclusion of the risks in the contractor’s (29)… *You are not required to purchase insurance from the your individual needs, as well as the property is located in a high-risk flood zone.(30)… (1). Life and Health Test Flashcards – Insurance – Quizlet
As people begin to age, they usually encounter more health risks. Managing pure risk entails the process of identifying, evaluating, and subjugating these risks—a defensive strategy to prepare for the unexpected. The basic methods for risk management—avoidance, retention, sharing, transferring, and loss prevention and reduction—can apply to all facets of an individual's life and can pay off in the long run. Here's a look at these five methods and how they can apply to the management of health risks.
Avoidance is a method for mitigating risk by not participating in activities that may incur injury, sickness, or death. Smoking cigarettes is an example of one such activity because avoiding it may lessen both health and financial risks. According to the American Lung Association, smoking is the leading cause of preventable death in the U.S. and claims more than 480,000 lives per year. Additionally, the U.S. Centers for Disease Control and Prevention notes that smoking is the No. 1 risk factor for getting lung cancer, and the risk only increases the longer that people smoke. Life insurance companies mitigate this risk on their end by raising premiums for smokers versus nonsmokers. Under the Affordable Health Care Act, also known as Obamacare, health insurers are able to increase premiums based on age, geography, family size, and smoking status. The law allows for up to a 50% surcharge on premiums for smokers.
Risk management strategies used in the financial world can also be applied to managing one's own health. Retention is the acknowledgment and acceptance of a risk as a given. Usually, this accepted risk is a cost to help offset larger risks down the road, such as opting to select a lower premium health insurance plan that carries a higher deductible rate. The initial risk is the cost of having to pay more out-of-pocket medical expenses if health issues arise. If the issue becomes more serious or life-threatening, then the health insurance benefits are available to cover most of the costs beyond the deductible. If the individual has no serious health issues warranting any additional medical expenses for the year, then they avoid the out-of-pocket payments, mitigating the larger risk altogether. Sharing risk is often implemented through employer-based benefits that allow the company to pay a portion of insurance premiums with the employee. In essence, this shares the risk with the company and all employees participating in the insurance benefits. The understanding is that with more participants sharing the risks, the costs of premiums should shrink proportionately. Individuals may find it in their best interest to participate in sharing the risk by choosing employer health care and life insurance plans when possible. The use of health insurance is an example of transferring risk because the financial risks associated with health care are transferred from the individual to the insurer. Insurance companies assume the financial risk in exchange for a fee known as a premium and a documented contract between the insurer and individual. The contract states all the stipulations and conditions that must be met and maintained for the insurer to take on the financial responsibility of covering the risk. By accepting the terms and conditions and paying the premiums, an individual has managed to transfer most, if not all, the risk to the insurer. The insurer carefully applies many statistics and algorithms to accurately determine the proper premium payments commensurate to the requested coverage. When claims are made, the insurer confirms whether the conditions are met to provide the contractual payout for the risk outcome. This method of risk management attempts to minimize the loss, rather than completely eliminate it. While accepting the risk, it stays focused on keeping the loss contained and preventing it from spreading. An example of this in health insurance is preventative care. Health insurers encourage preventative care visits, often free of co-pays, where members can receive annual checkups and physical examinations. Insurers understand that spotting potential health issues early on and administering preventative care can help minimize medical costs in the long run. Many health plans also provide discounts to gyms and health clubs as another means of prevention and reduction in order to keep members active and healthy. |
When an individual purchases insurance what risk management technique is her or she practicing?
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