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.

Have A Question About This Topic?

Thank you! Oops!
 

Related Content

Estate Management Checklist

Estate Management Checklist

Is your estate in order? This short quiz may help you assess your overall strategy.

Did You Know This Fact About Smoke Detectors?

Did You Know This Fact About Smoke Detectors?

Do you know how often to change the batteries on your smoke detectors?

Volunteering in Retirement

Volunteering in Retirement

For many, retirement includes contributing their time and talents to an organization in need.