Match the term with its definition.
-Identifying the specific perils covered in a property insurance policy
A)all-risk approach
B)business risk
C)compensatory damages
D)Economic damages
E)health maintenance organization (HMO)
F)market risk
G)named-peril approach
H)peril
I)preferred provider organization (PPO)
J)pure risk

Question

Quizplus · Accepted Answer

The named-peril approach involves identifying the specific perils that are covered in a property insurance policy.

Answer: H
 A peril is a specific event or circumstance that may cause damage or loss and is covered under an insurance policy.

Answer: J
 Pure risk refers to a situation where there is only a potential for loss and no opportunity for gain. It is the type of risk that insurance is designed to cover.

Match the Term with Its Definition