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Negative act

Negligence refers to the failure of an individual to fulfill their obligations, resulting in harm or loss to another party. It can involve the failure to perform a required action or the omission of an expected duty. This can be seen as a breach of duty, which can have legal consequences. In the world of finance, negligence can have serious implications and it is important to always fulfill one's duties and responsibilities.

Claim Amount

The term "payable amount" refers to the sum of money that is due upon the completion of a policy or when a claim is made. This amount is typically determined at the beginnin...

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Earnings multiple approach

A commonly used term in employee benefits, a group life plan provides an employee with a predetermined amount of life insurance coverage, typically one or two times their a...

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Insurable value

When discussing business income coverage, it's important to understand the concept of net income. This is the amount that remains after subtracting variable costs and expens...

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Objective risk

One of the key terms in finance is 'variance', which refers to the difference between the actual and expected outcomes. This concept is crucial as it helps us understand the...

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