MCS 2100 Lecture Notes - Lecture 8: Small Claims Court, Dead Bolt, Home Insurance

• School: University of Guelph
• Department: Marketing and Consumer Studies
• Course: MCS 2100
• Professor: Rosemary Vanderhoeven

Document Summary

Amount you buy should relect potenial inancial impact of loss or parial loss of what you are insuring. Life insurance replaces income that is lost if the policyholder (main beneiciary of insurance) dies. Health insurance helps meet medical expenses when policyholder becomes ill. Automobile insurance helps cover property, and personal damage caused by the policyholder"s car. Home insurance covers policyholder"s place of residence and its associated inancial risks, such as damage to personal property and injuries to others. Insurance company risk-sharing irm that agrees to assume inancial responsibility for losses that may result from an insured risk. Person joins risk-sharing group (insurance company) by purchasing a policy (contract: policy writen consent for insurance, under policy, insurance company agrees to assume the risk for a free (called premium) that the policyholder pays periodically. Risk, peril, and hazard are important terms in insurance: risk the chance that something may be lost.