Insurance Terms Defined: Net Income
Net Income: revenue minus expenses and taxes during a given time period. All insurance companies, like most companies, must keep good records of the income that is produced by the company to budget and...
View ArticleInsurance Terms Defined: Net Income Loss
Net Income Loss: an indirect loss caused by a reduction in revenue, an increase in expenses, or both during a given time period. Once you have been able to determine your net income, you can then...
View ArticleInsurance Terms Defined: Liability Loss Exposure
Liability Loss Exposure: any condition or situation that presents the possibility of a claim alleging legal responsibility of a person or business for injury or damage suffered by another party. A...
View ArticleInsurance Terms Defined: Liability Loss
Liability Loss: A claim for monetary damages because of an injury to another party or damage to another party’s property. Any time that you have caused or are being accused of causing injury to another...
View ArticleInsurance Terms Defined: Risk
Risk: the uncertainty about outcomes, some of which can be either negative or positive. If you are simply trying to understand why insurance is necessary this is the most basic term that could help you...
View ArticleInsurance Terms Defined: Hazardous
Hazardous: risk from accidental loss, including the possibility of loss or no loss. Hazardous events are what make insurance both so necessary and so expensive at the same time. The definition of a...
View ArticleInsurance Terms Defined: Business Risk
Business Risk: risk that is inherent in the operation of a particular organization, including the possibility of loss, no loss, or gain. There are vast amounts of different types of insurance that are...
View ArticleInsurance Terms Defined: Retention
Retention: a risk management technique by which losses are retained by generating funds within the organization to pay for losses. As you may know, insurance is basically the transferring of risk from...
View ArticleInsurance Terms Defined: Noninsurance Transfer
Noninsurance Transfer: a risk management technique by which the risk of loss is transferred to a person or organization that is not an insurer. The transfer of risk to an insurer is the most common...
View ArticleWhy File an Auto Insurance Claim?
When you signed up for your auto insurance policy you signed up for the opportunity to make a claim any time that you were involved in an auto accident or any other event that caused damage to your...
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