fortuitous loss. loss
occurring by accident or chance, not by anyone’s intention
. Insurance policies provide coverage against losses that occur only on a chance basis, where the insured cannot control the loss; thus the insured should not be able to burn down his or her own home and collect.
What does known loss mean?
Known Loss Rule — the principle of insurance practice that states
that coverage may not be obtained against a loss that has already occurred
and that is known to the person seeking to obtain the coverage.
What is payment of fortuitous losses in insurance?
PAYMENT OF FORTUITOUS LOSSES A second characteristic of private insurance is the payment of fortuitous losses. A fortuitous loss is
one that is unforeseen and unexpected and occurs as a result of chance
. In other words, the loss must be accidental. … RISK TRANSFER Risk transfer is another essential element of insurance.
What is the pure risk?
Pure risk, also called absolute risk, is
a category of threat that is beyond human control and has only one possible outcome if it occurs: loss
. Pure risk includes such incidents as natural disasters, fire or untimely death.
What is a catastrophic loss in insurance?
Catastrophic Loss —
loss in excess of the working layer
, usually of such magnitude as to be difficult to predict and therefore rarely self-insured or retained.
What is payment amount?
Payment Amount means
the monetary figure you specify in a Scheduled Payment
, including the regular amount and the final amount of a Recurring Payment series, that the Service shall remit to the Payee. … Payment Amount means the bill amount User wants to pay to the Client.
What does financial loss mean?
Noun. 1. financial loss –
loss of money or decrease in financial value
. nonpayment, nonremittal, default – loss resulting from failure of a debt to be paid. capital loss – the amount by which the purchase price of an asset exceeds the selling price; the loss is realized when the asset is sold.
What is the known loss rule?
In response, courts have developed a common-law rule most often referred to as the “known loss” doctrine, which
provides that there is no coverage for a loss that has already occurred at the time the insured applied for the policy
.
What is insurance coverage trigger?
A coverage trigger is
an event that must occur in order for a liability policy to apply to a loss
. Coverage triggers are outlined in the policy language, and courts will use different legal theories pertaining to triggers to determine whether policy coverage applies.
What is triple trigger theory in insurance?
Triple Trigger Theory —
one approach in determining the trigger on an occurrence
. This approach states that all policies in force from the time of initial exposure through manifestation apply. … This theory is also referred to as “exposure and manifestation” and “exposure-in-residence.”
What are the 3 categories of perils?
human perils. One of three broad categories of perils commonly referred to in the insurance industry which include not only human perils, but also
natural perils and economic perils
.
What are the 3 types of risks?
- Systematic Risk – The overall impact of the market.
- Unsystematic Risk – Asset-specific or company-specific uncertainty.
- Political/Regulatory Risk – The impact of political decisions and changes in regulation.
- Financial Risk – The capital structure of a company (degree of financial leverage or debt burden)
Which is not a pure risk?
Pure risk cannot be
controlled
and has two outcomes: complete loss or no loss at all. There are no opportunities for gain or profit when pure risk is involved. Pure risks can be divided into three different categories: personal, property, and liability.
What are examples of catastrophic loss?
A catastrophic loss is a severe event that results in losses that are larger than usual. Examples of catastrophic losses that occurred in 2018 are:
Hurricanes Florence and Michael, and the November Woolsey and Camp fires
.
What’s another word for catastrophic?
In this page you can discover 15 synonyms, antonyms, idiomatic expressions, and related words for catastrophic, like:
destructive
, fatal, cataclysmic, disastrous, calamitous, crippling, fateful, cataclysmal, devastating, ruinous and devestating.
What is a catastrophe limit?
The catastrophic limit, also known as the out-of-pocket limit, is
the highest amount of money you have to pay out-of-pocket during a given period of time for certain services
. After you have reached the catastrophic limit of your insurance plan, a higher level of coverage begins.
