IC38 GENERAL INSURANCE AGENT EXAM - Study Notes

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  • People who are exposed to the same risks come together and agree that, if any one of them suffers a loss, the others will share the loss and compensate the person who lost.
  • Anything of monetary value that is owned by a person is called as an ASSET.
  • Physical assets - Car or Building, Non-Physical Assets - Name and Goodwill, Personal Assets - Eyes, Limbs, Parts of Body etc
  • Assets may get damaged due to Accidental occurances. PERIL is the cause of the loss. The event, whose occurrence actually leads to the loss, is known as a peril
  • Hazard is a condition that increases the chances of loss. Lung Cancer is a PERIL. Smoking which increases the chances of Lung Cancer is a HAZARD

IC38 General Insurance

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