Match the term with its definition.
-The uncertainty associated with a situation where only loss or no loss can occur
A)all-risk approach
B)business risk
C)compensatory damages
D)Economic damages
E)health maintenance organization (HMO)
F)market risk
G)named-peril approach
H)peril
I)preferred provider organization (PPO)
J)pure risk

Question

Quizplus · Accepted Answer

Pure risk is the type of risk that only involves potential loss or no loss.

Answer: H 
 Peril refers to the cause of loss, such as a fire or a storm.

Answer: G 
 Named-peril approach is a type of insurance policy that only covers losses caused by the specific perils listed in the policy.

Answer: F 
 Market risk refers to the risk of investments decreasing in value due to changes in the market.

Answer: D 
 Economic damages refer to financial losses that occur as a result of a business or personal injury.

Answer: C 
 Compensatory damages refer to the monetary compensation awarded to a plaintiff in a lawsuit to make up for their losses.

Answer: E 
 Health maintenance organization (HMO) is a type of healthcare insurance plan that provides healthcare services through a network of healthcare providers.

Answer: I 
 Preferred provider organization (PPO) is a type of healthcare insurance plan where patients have a list of providers to choose from, with lower insurance rates if they choose providers in the PPO network.

Answer: B 
 Business risk refers to the risk associated with starting and operating a business, including financial risks and risks from competition.

Answer: A 
 All-risk approach is an insurance policy that covers all types of losses, except for those explicitly excluded in the policy.

Match the Term with Its Definition