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.

Share |

Have A Question About This Topic?

Thank you! Oops!
 

Related Contents

Coaches

Coaches

Coaches have helped you your whole life, in ways big and small. We’d like to be one of them.

The Case of the Crooked Credit Report

The Case of the Crooked Credit Report

Solve a mystery while learning how important your credit report is with this story-driven interactive.

Long-Term-Care Protection Strategies

Long-Term-Care Protection Strategies

The chances of needing long-term care, its cost, and strategies for covering that cost.