Match the term with its definition.
-A cause of loss, either through natural events or through the actions of people
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

Peril is a cause of loss, either through natural events or through the actions of people.

Answer: J
 Pure risk is a type of risk that involves only the possibility of loss, with no chance for gain.

Answer: G
 Named-peril approach is an insurance policy that covers only specific named perils (e.g. fire, theft), rather than loss from all possible causes (as in an all-risk approach).

Match the Term with Its Definition