Speculative Risk
Definition of "Speculative risk"
Uncertain prospect of financial gain or loss. A business investment that could either return a profit or sustain a loss, such as the purchase of a common stock, is an example of a speculative risk. In most instances, speculative risks are not insurable.
Popular Insurance Terms
Plan established by the employer that permits the employee to defer pretax earnings into a specifically designated account. From this account, the employee may withdraw funds to pay ...
Investment income. Insurance companies invest part of their premiums that are not immediately needed for claims and administrative expenses. These earnings are critical to an insurance ...
Form of coverage in which an insurer automatically reinsures individual risks with its reinsurer. The insurer must transfer (cede) the risks to its reinsurer and its reinsurer must accept ...
Coverage for the insured's personal and real property and the insured's own person. Contrast with third party. ...
Time at which life insurance death proceeds or endowments are paid, either at the death of an insured or at the end of the endowment period. ...
Coverage for an employer in the event of dishonesty of any employee. ...
Termination of a policy. Contract may be terminated by an insured or insurer as stated in the policy. If the insurance company cancels a policy, any unearned premiums must be returned. If ...
Professional designation conferred by the International Board of Standards and Practices for Certified Financial Planners. In addition to professional business experience in financial ...
Nonparticipating life insurance (also called a guaranteed dividend or guaranteed investment policy) sold by a stock life insurance company, usually as a 20-payment policy with coupons ...
Have a question or comment?
We're here to help.