Question: Property Risks

Answer: Risking financial losses if your property is damaged, destroyed, or stolen

Question: Personal Risks

Answer: Illness, injury, disability, or death of a family member can result in the loss of that person’s income, as well as added expenses such as medical bills and funeral costs

Question: Liability

Answer: Legal responsibility to pay someone who has suffered an injury or loss caused by you

Question: Insurance

Answer: Purchased protection that guarantees to pay you in the event of certain specific losses.

Question: Transferring Risk

Answer: Any one’s person’s financial risk by sharing the risk among a large group of people

Question: Indemnity

Answer: Restoring the insured person to the financial position he/she was in before the loss occured

Question: Insurable Interest

Answer: Having a financial stake in the life or property being insured

Question: Policy

Answer: Written agreement between the policyholder (consumer purchasing insurance) and the insurance company

Question: Exclusions

Answer: Specific risks not covered by a policy

Question: Endorsements

Answer: Sometimes called riders; attachments to a standard insurance policy that add or take away coverage