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CIP 01 terminology

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  • first part of each and every loss that is the responsibility of the customer.
    excess/deductible
  • a feature of a risk that presents a poorer or better hazard
    discrimination factor
  • the existence of a number of risks with similar profiles or characteristics, E.g. in terms of frequency and severity patterns.
    Homogenous risk
  • Main or dominant cause of the loss or the cause that is most powerful in its effect.
    proximate cause
  • what is a factor that will extend the principle of indemnity.
    New for old
  • when large multinational companies insure themselves
    captive insurance company
  • terms that are assumed to be part of an insurance policy even though they may not have been written into the policy.
    implied conditions
  • a desire on the part of an individual or company to minimise the risks to which they are exposed either through risk management or insurance.
    risk-adverse
  • a risk where there is a possibility of a loss, break-even or a gain E.g. playing the lotto, gambling etc.
    speculative risk
  • definition of fortuitous
    accidental and unexpected
  • the right of an insurer, following payment of a claim, to take over the rights of the insured to recover payment from a third party responsible for the loss.
    Subrogation
  • event or occurrence that gives rise to a loss or liability
    Peril