What is risk and insurance?
Risk insurance refers to the risk or chance of occurrence of something harmful or unexpected that might include loss or damage of the valuable assets of the person or injury or death of the person where the insurers assess these risks and, based on which, work out the premium that the policyholder needs to pay.
What are the 4 types of risk in insurance?
Insurable Types of Risk\n\n There are generally 3 types of risk that can be covered by insurance: personal risk, property risk, and liability risk. Personal risk is any risk that can affect the health or safety of an individual, such as being injured by an accident or suffering from an illness.
What are the 3 types of risk in insurance?
Most pure risks can be divided into three categories: personal risks that affect the income-earning power of the insured person, property risks, and liability risks that cover losses resulting from social interactions.
What are the risks of a client's insurance policy?
• Clients may be exposed to the risk of claims by third parties due to loss arising from their acts or omission. For example, negligent driving resulting in a road accident will be liable for the damages. Certified Financial Planner Module 2: Risk Mgmt & Insurance
What are the risks generally considered under the health insurance?
Medical Insurance The risks generally considered under the health insurance include • Medical Expenses • Personal Accident/ Loss of Income Due to a Disability • Long Term Care Expenses Certified Financial Planner Module 2: Risk Mgmt & Insurance 66.
What is insurance of business risk?
Insurance of Business Risk • Key person Insurance: is insurance that a business purchases on the life of a person whose continued participation in the business is necessary to its success and whose death would cause financial loss to the business.