Task 2 For Midterm exam Group: mm53 I Full name

Task 2
For Midterm exam

Group: _______________mm53 i__________________________________
Full name: ________________Xayitmurodov Ziyodulla______________________________
Rules:

• 
  No plagiarism
  
• 
  No copy from your friends
  
• 
  Only with your own words
  

Mark: 25%

Question 1: Basic principles and concepts of risk management
So, first of all what is the risk?
Risk is the probability of the occurrence of accident or damage. In order to minimize the damage we need to manage the risks.
In the insurance there is underwriter who evaluates the risk. It is chosen by insurance company. After seeing insurance offers, underwriter accepts or refuses this offer and gives a feedback. He also defines the insuring rate and determines period, conditions and amount of indemnity and amount of premium.
Damage factor is divided into two types: material and immaterial.
The presence of uncertainty and the importance of alternative option are the two characteristics of the risk.
There are three types of evaluation of risk:

1. 
   Standard – if risk is standard it is low level risk and it is for the benefit of insurance company.
   
2. 
   Average– if risk is average it is medium level risk.
   
3. 
   Lover than average– if risk is lower than average it is high level risk and it is for the benefit of customer.
   

The occurrence of the risk :

1. 
   Negative – threats
   

You should avoid it. Because outcome is negative

2. 
   Positive –opportunities
   

You shouldn`t avoid it. Because outcome is positive

3. 
   Zero – neither threats nor opportunities
   

Question 2: Definition of insurance terms and their grouping
There are some groups of insurance terms.
For example Terms on organizing Insurance fonds: License, Indemnity, Premiums, Insured, Underwriter, Intermediary in insurance. All of which we are familiar with from previous topics.
Mandatory insurance is obligatory by government for the employees of Military, Customs and Tax. Any insurance company having license for it can make mandatory insurance with this people.
Property insurance. Property might be owned or there may be responsible people for property. If someone teaches students in classroom he or she will be a responsible person for this property not the owner.
Shared risk. If the risk is high level risk it is divided into some parts. For example, one insurance company take responsibility for certain part of something, another insurance company take the other part`s responsibility. So, everyone will be responsible for their portions.
International insurance terms.
Abandon– giving up your property that you made insurance and lost, in order to get a money. For example if you lost your phone which has an insurance you may abandon( give up) and take an indemnity. But after that if your phone will be found you cannot get it.
Adjuster is a person whose job is to investigate losses after risk is occurred.
Premium is the actual cost of your insurance plan.
Deductible is the amount that you must pay out of your own pocket before the insurance company will begin paying towards any covered expenses.
Policy Limit - The policy limit is the maximum amount an insurer will pay under a policy for a covered loss