Classified risk


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  • Classified risk

    1. 1. The Keys to managing Risk Edwin L Clerval
    2. 2. The Agents View In insurance it is the agents responsibility to collect the necessary informations to conclude on the needs of any insured. In doing so the agent will gather information on what would be a considerable risk to the insured and his/her assets. If there is a entity which is potentially valuable to the insured and runs the possibility of being a tough loss to then, then it should be insured against risk. If there is a slight opening for loss to the insured because of depreciable value and is considered a means of income in the basic sense then by all means it should also be insured. The presentation which the agent will provide any lead or possible client is that of clarifying ones core valuables to protect from loss. This will most definatly have the client speaking your language.
    3. 3. kind of Risk Defining this term is like revealing the utmost important of values in insurance. Risk is the uncertainty or the chance that a loss will occur. In insurance the risk is death or injury. The two types of risk which are defined are called Pure and Speculative. In insurance the only kind of risk which is covered would be pure risk. Reason for this being that insurance runs on an indemnic principle. wherein that there are no profit to be made from a loss with specific The other type of risk is defined as a speculative risk. In this definition it is explained that There is a possibility for there to be a loss, but there is also the same amount of chance that there will be a positive profit in production, many time not meeting the requirements for underwriters to establish a policy. This action is in the protective interest of the public in that the entire purpose which insurance is to restore what a loss might have expensed the insured. A speculative risk can profit, thus useless for an insurance policy.
    4. 4. Factoring Risk Categorizing the risk has a specific purpose in determining the cost to the insured for the service of insurance. For example in Life insurance knowing the life age, past medical history, occupation would aid in classifying the service and the price on this service. The mentioned categories are called the exposure units. They represent the physical depreciation which would be presented to the asset regularly.