Assumption Of Risk
Technique of risk management (better known as retention or self insurance) under which an individual or business firm assumes expected losses that are not catastrophic losses through the purchase of insurance. For example, a business firm assumes the risk of its employees being absent because of minor illness, but buys disability insurance to cover absences due to extended illness. Also refers to
- situations where insureds place themselves in situations that they realize pose a danger;
- the acceptance of risks by an insurance company.
Popular Insurance Terms
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Addition to a property policy providing coverage for a specified amount. This endorsement is typically used for an unusual or valuable piece of property that does not fit standard ...
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Model act written and published by the national association of insurance commissioners (naic) whose purpose it is to regulate brokers who control insurance companies. The act permits the ...
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