Ch 8: Insurance & Risk Management Basics

About This Chapter

Look at this chapter for a recap on insurance risk and management basics. To get higher scores on commerce exams, you need to know all the major topics, and our lessons provide a structured guide that makes it easier for you to memorize and recall these commerce concepts.

Insurance & Risk Management Basics - Chapter Summary

Use this chapter to brush up on insurance and risk management basics. Whether you need to review the entire chapter or only a few lessons, our instructors cover all of the essential details, such as uninsurable and insurable risks, criminology, disclosures, representations, warranties, and insurance options. By completing every lesson in the chapter, you will be ready to:

  • Describe risk management and insurance policies
  • Define the utmost good faith principle in insurance
  • Explain insurable interest
  • Offer examples of proximate cause
  • Compare insurance coverages for different types of risk
  • Establish the uses for double insurance and re-insurance
  • Point out the ways in which professionals manage risk

This chapter uses a mix of both video and text lessons. The video lessons offer an engaging way to listen and review these major commerce topics. The text lessons read like short articles, and they are organized using easy-to-recognize headers, bolded and italicized vocabulary words, and plenty of visual aids. Regardless of format, almost all lessons can each be completed in around 5-10 minutes. The lessons are so short, because they're each focused on one single concept. Shorter lessons encourage better retention, and it's easier for people with busy schedules to fit in several short lessons throughout their day.

7 Lessons in Chapter 8: Insurance & Risk Management Basics
Test your knowledge with a 30-question chapter practice test
Understanding Insurance Policies and Risk Management

1. Understanding Insurance Policies and Risk Management

Obtaining insurance is one of the most common methods of risk management. In this lesson, you'll learn about insurance policies and some key concepts related to insurance. You'll also have a chance to take a short quiz.

Principle of Utmost Good Faith in Insurance

2. Principle of Utmost Good Faith in Insurance

This lesson explains the doctrine of utmost good faith as it applies to insurance contracts. It also discusses the related concepts of representations, disclosures, and warranties, as well as the repercussions of failing to comply with the doctrine.

What is Insurable Interest?

3. What is Insurable Interest?

Can I buy a life insurance policy on my neighbor so that I can collect the benefit if he dies? Let's investigate the insurance concept of insurable interest to find out. We will look at who is eligible to purchase insurance on another person.

Proximate Cause: Definition, Examples & Criminology

4. Proximate Cause: Definition, Examples & Criminology

Proximate cause is a legal concept that relates to the connection between an injury and the event that caused the injury. This lesson discusses the basic definition of proximate cause and provides some examples of the concept.

Insurance Coverage for Various Types of Risk

5. Insurance Coverage for Various Types of Risk

Businesses operate in a world of risk. One of the best ways to manage risk is through insurance. In this lesson, you'll learn about the types of insurance coverage available to businesses to help them manage their risks.

Re-insurance & Double Insurance in Business: Definition & Uses

6. Re-insurance & Double Insurance in Business: Definition & Uses

Disasters can result in huge payouts for insurance companies. This lesson looks at how reinsurance is used to reduce these huge payouts, as well as what happens when a person or company has double insurance.

Ways to Manage Risk: Insurable and Uninsurable Risk

7. Ways to Manage Risk: Insurable and Uninsurable Risk

Risks abound in life and in business. However, most risks can be managed. In this lesson, you'll learn about ways to manage risks. You'll also learn the difference between insurable and uninsurable risks. A short quiz follows.

Chapter Practice Exam
Test your knowledge of this chapter with a 30 question practice chapter exam.
Not Taken
Practice Final Exam
Test your knowledge of the entire course with a 50 question practice final exam.
Not Taken

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