CPRM cheat sheet

Personal risk management: exposures, policy wording and coordination

• Start with exposures and consequences rather than a quotation.

• Separate risk control from financial transfer.

• Read valuations, exclusions, deductibles and layers together.

• A policy-specific condition controls the result, not an industry slogan.

• Distinguish goals, cash flow, liquidity and net worth.

• Risk willingness and loss-bearing capacity are different inputs.

• State saving timing, inflation and rate assumptions.

• Tax, pension, estate and product-contract rules remain local and unverified.

• Read the actual coverage, limits, exclusions and duties.

• Insurance transfers specified financial consequences, not the physical hazard itself.

• Claims calculations require an explicit deductible and limit convention.

• Reinsurance does not automatically release the original insurer from its policyholder obligation.