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Archive for March, 2005

Risk – Speculative Risks

Risks that involve both the chance of loss and of gain. For example, gambling.


Risk – Pure Risks

Pure Risks are risks that only involve the chance of loss. There is nevery any possibility of gain or profit. For example, injury from an accident.


Hazards – Moral Hazards

The tendencies of people that increase risk and the chance of loss. For example, alcoholism.


Hazard – Physical Hazards

Physical conditions that can increase the chance of Peril. For example, blindness.


Loss – Financial Loss

The loss of money, whether through a death and losing future income or through disability or hospitalization and all of the financial deprivations that typically come with it.


 

 

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