Catastrophe Hazard
Definition of "Catastrophe hazard"
Circumstance under which there is a significant deviation of the actual aggregate losses from the expected aggregate losses. For example, a hurricane is a hazard that is catastrophic in nature, since whole units or blocks of businesses may be threatened. Catastrophic hazards often cannot or will not be insured by commercial insurance companies either because the hazard is too great or because the actuarial premium is prohibitive. Where a void exists in the marketplace, a government agency may subsidize the coverage with such programs as federal flood insurance and serviceman's GROUP LIFE INSURANCE (SGLl).
Popular Insurance Terms
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Number of individuals exposed to the risk of illness, sickness, and disease at each age, and the actual number of individuals who incurred an illness, sickness, and disease at each age. ...
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Same as term Fortuitous Loss: loss occurring by accident or chance, not by anyone's intention. Insurance policies provide coverage against losses that occur only on a chance basis, where ...
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