Insurance Law - 34. page

Static Risks : Static risks are risks connected with losses caused by the irregular action of nature or by the mistakes and misdeeds of human beings. Static risks are the same […]

Dynamic Risk : Dynamic risks are risks associated with a changing economy. Important examples of dynamic risks include the changing tastes of consumers, technological change, new methods of production, and investments […]

Financial and Non-financial Risks : A financial risk is one where the outcome can be measured in monetary terms. This is easy to see in the case of material damage to […]

BASIC CATEGORIES OF RISK : With regards insurability, there are basically two categories of risks; 1. Speculative or dynamic risk; and 2. Pure or static risk Speculative or Dynamic Risk  […]

Fundamental Risks and Particular Risks : Fundamental risks affect the entire economy or large numbers of people or groups within the economy. Examples of fundamental risks are high inflation, unemployment, war, […]

Subjective Risk : Subjective risk is defined as uncertainty based on a person’s mental condition or state of mind. For example, assume that an individual is drinking heavily in a bar […]

Peril : We often use the word risk to mean both the event which will give rise to some loss, and the factors which may influence the outcome of a loss. […]

Physical hazard : Physical hazard relates to the physical characteristics of the risk, such as the nature of construction of a building, security protection at a shop or factory, or the […]

Moral hazard : Moral hazard concerns the human aspects which may influence the outcome. Moral hazard is dishonesty or character defects in an individual that increase the chance of loss. For […]

Morale hazard : This usually refers to the attitude of the insured person. Morale hazard is defined as carelessness or indifference to a loss because of the existence of insurance. The […]