Course Study Materials

Talking Book Sample

RISK

Risk is the chance, possibility or probability of an occurrence: Uncertainty

· Pure Risk is the chance, possibility or probability of loss only. Insurance only deals with pure risk exposures.

     Examples

     The risk that wind may cause damage to a structure or to personal property.

      The risk that personal property might be lost due to theft..

·   Speculative Risk is the chance, possibility or probability of gain or loss.

       Examples

     The risk that a unit value (share) of a mutual fund may increase or decrease.

      The risk that a ticket holder’s numbers may or may not be drawn in the weekly lottery.

PERILS

A peril refers to the thing that is the cause of a loss, i.e., fire, windstorm, explosion, etc. A peril is the direct cause of the damage, injury or loss.

Examples

The peril of fire cause damage to the home after a spark escaped the fireplace in the living room.

The peril of vehicle collision created a loss when the UPS truck hit the garage door when the truck’s safely brake slipped....



	Talking Book Sample RISK Risk is the chance, possibility or probability of an occurrence: Uncertainty · Pure Risk is the chance, possibility or probability of loss only. Insurance only deals with pure risk exposures. *Examples* The risk that wind may cause damage to a structure or to personal property. The risk that personal property might be lost due to theft.. · Speculative Risk is the chance, possibility or probability of gain or loss. *Examples* The risk that a unit value (share) of a mutual fund may increase or decrease. The risk that a ticket holder’s numbers may or may not be drawn in the weekly lottery. PERILS A peril refers to the thing that is the cause of a loss, i.e., fire, windstorm, explosion, etc. A peril is the direct cause of the damage, injury or loss. *Examples* The peril of fire cause damage to the home after a spark escaped the fireplace in the living room. The peril of vehicle collision created a loss when the UPS truck hit the garage door when the truck’s safely brake slipped....