Category Archives: Insurance

Open-Perils Coverage

“Open-Perils Coverage” is a form that shows that commercial property insurance has exclusions to the insurance policy.  When the peril is open, the insurer proves that there is an exclusion, but if the peril is specific then the insured must prove and give evidence about loss coverage for proximate cause.  The picture illustrates this point by giving bullet points about property exclusions that include the idea of open perils and examples of what they would be in insurance company policies.

Internal Revenue Code (IRC)

The Internal Revenue Code is one of two federal regulations that is supposed to make employee benefits have rules about qualification and nondiscrimination.  It involves rules like requiring things to be in writing and have rights be made legally enforceable.  The nondiscrimination laws try to protect lower-paid workers and not to show too much partiality to over-compensating certain groups as unfair favoritism.  So, when the government gives tax breaks, it makes regulations for the employee benefit plans with the help of the Internal Revenue Code (IRC).   

Moral Hazard

“Moral Hazard” is when actions happen to actually occur of the issues of personal behavior that could enlargen the frequency or severity of loss in the consumer field of health care.  The meme describes how corporate responsibility could affect individual behavior to incite moral hazard, which could occur in both private and public sectors.

Decreasing Term Life Insurance

Decreasing term life insurance is when the policy decreases the coverage protection benefits of the insurance amount for coverage but not premiums, which remain the same.  The cartoon shows that life insurance has a benefit for the beneficiary to those they leave behind, which is why they would want to buy term life insurance.

Primary Coverage

Primary Coverage is when two or more insurance policies could possibly respond to provide coverage to repay damage, the policy that pays first is the primary coverage.  In the cartoon, both cars have umbrellas that could represent insurance policies, but the one that is full could show that one is the primary coverage.

Replacement-Cost Insurance

Replacement-Cost Insurance is about property insurance policies.  In this policy, the insured pays for property cost instead of its cash value with the requirement of repair or replacement of damaged property so then the insurer pays the amount equal to the full cost without deduction for depreciation.  The cartoon shows the cavemen discussing replacement-cost insurance in their cave about the property condition repair of rocks in their home.

Social Insurance

“Social insurance” means that the government is responsible for the financial support of programs for individuals and companies that can be paid into with taxes from the recipients and bolstered with subsidies from the government provider.  Social Security retirement, disability, and survivor benefits, bank deposit insurance, unemployment benefits, and corporate pensions can be called social insurance.  The picture explains the idea of how it can be thought of that they are not only earned benefits that they can be premium supported or taxed into by the participants, but that since they are supplemented and sponsored by the government they are called entitlements instead of purely earned benefits.


Judgement happens in court when an official decision is made by the court about a lawsuit case.  The decision may be made in favor of a defendant or a plaintiff.  Legal repercussions can be charged for damages because of the judgement decision.  The meme picture could be interpreted to communicate that clarity and precise court judgement could be important so that cases are not left unresolved and clearly settled.


A risk handling technique that deals with loss financing for the future is called self-insurance.  It is when a company pays for risk management losses INTERNALLY using financial risk pooling, which is when diversification shares the risk among a group of people by limiting the burden with the company self-power of payment.  The cartoon seen above can express that internal coverage ways of being seen inside the context of the group meaning for coverings, like the clothing of a hospital gown inside a hospital, can be an internal risk pool that is limited and can be an uncertain expectation to those included in the company policy.