A ____ is a cause of loss - peril
A situation, behavior, or condition that may lead to adverse financial consequences
- exposure
A cyberattack is an
... [Show More] example of a ____ - peril
An Insured who shows no regard for his insured property demonstrates a - morale
hazard
A spill on a supermarket aisle is an example of a ____ because it increases the
likelihood that someone will fall - hazard
A passenger enters an elevator. His clothing is caught in the elevator door as the
door closes. The passenger snatches the clothing from the door before the elevator
begins to move. He is uninjured and his clothes are not damaged. - incident
A mixing paddle on a faulty bakery mixer snaps and strikes an employee's hand.
The employee's hand is cut and bleeding - accident
A driver is at fault in a minor auto accident. The other driver is uninjured, but the
bumper on her car requires repairs. The other driver demands that the at-fault
driver's insurance company pay for the loss. - claim
The total dollar amount of all losses for a given period of time - severity
A loss has occurred but is unlikely to occur again in the future - low frequency
An organization's tolerance for risk - risk appetite
The product of loss frequency multiplied by loss severity - expected losses
The total amount of losses in a given period divided by the total number of claims -
average severity
A loss expected to continue occurring regularly - high frequencyA cause of loss - peril
An unplanned event definite as to time and place that results in injury or damage to
a person or property - accident
An event that disrupts normal activities and may become a loss or business
interruption - incident
A demand for payment or an obligation to pay as a result of a loss or occurrence -
claim
A situation, practice, or condition that may lead to an adverse financial
consequence or loss; an activity or resource; people or assets - exposure
A reduction in value - loss
An accident with the limitation of time removed; an "accident" extended over a
period of time rather than a single, observable event - occurrence
A condition or characteristic that may create or increase the likelihood or severity
of a loss - hazard
A response to a focus on the frequency with which events occur - Prevention
The isolation of an exposure from other exposures, perils, or hazards - Segregation
Creating asset back-ups - Duplication
A response to a focus on the severity of incidents in an effort to recognize risk and
take action to lower losses - Reduction
The shift of function, exposure, or responsibility of certain liabilities to another
party - Transfer
The elimination of risk - Avoidance
The process of spreading exposures or activities over several locations - Separation [Show Less]