Insurance

What is Risk?

Risk

[risk]

noun

1.

Risk is the likelihood that an insured event occurs, that is, an event in which the insurance company is likely to pay out a Claim. Insurance companies use Risk when determining whether to insure a home, car, or individual, and when setting Premiums. People with lower Risk generally pay lower rates, and people with higher Risk generally pay higher rates.

Share |

Have A Question About This Topic?

Thank you! Oops!
 

Related Content

Put Your Child on the Path to a Stronger Financial Future

Put Your Child on the Path to a Stronger Financial Future

Many parents consider financial goals to benefit their children at major milestones, whether it’s the appearance of a first..

How to Adopt “Blind Hiring” in Your Recruitment Process

How to Adopt “Blind Hiring” in Your Recruitment Process

A diverse workforce can strengthen your organization on every level, from employee retention to your bottom line. Updating practices to support a more diverse and inclusive workplace is more important than ever.

Thanks, Mom!

Thanks, Mom!

When it comes to managing your personal finances, there’s plenty of complex advice out there. But often, simpler is better.