COMMERCE 4FP3 Chapter Notes - Chapter 8: Co-Insurance, Credit Score, Dead Bolt
23 Jan 2017
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Auto insurance is based on: personal driving records, safety/theft records of the area lived in, the year/make/model of the car, the intended use of the car, the annual mileage, and the amount/type of coverage desired. Home insurance not only covers the home owner, it also covers the mortgage lending institutions, so they generally require it. Insurance company (or insurer): a risk-sharing firm that assumes financial responsibility for losses that may result from an insured risk; they share the risk for a fee. Premium: the amount of money a policyholder is charged for an insurance policy. Policyholder (or insured): a person who owns an insurance policy. Peril: the cause of a possible loss (ie. fire) Hazard: a factor that increases the likelihood of loss through some peril (ie. defective wiring) Risk management: an organized strategy for protecting assets and people; needs to change at various points in peoples" lives.
