NC Personal Lines Licensing Exam Part 1 Terms
and Concepts EXAM !! Graded A+ | 2026 EXAM
UPDATE
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Practice questions for this set
Learn 1 /7 Study with Learn
A temporary written or oral agreement to provide insurance coverage until
a formal written policy is issued.
Choose an answer
1 Risk 2 Types of Property Loss Valuation
3 Binder 4 Indemnity
Don't know?
Terms in this set (43)
, Risk The uncertainty or chance of a loss occurring.
Pure- Insurable, only a chance of loss, no
financial gain
Speculative- Not insurable, chance of loss or
gain (ex: gambling)
Hazard Conditions or situations that increase the
probability of an insured loss occurring
Types:
Physical (individual characteristics increase
chances of the cause of loss)
Moral (lying on application)
Morale (indifference)
Peril The cause of a loss (loss is the basis of a claim)
Economic Loss The estimated total cost (both insured and
uninsured) of an accident.
Indemnity Reimbursement to the extent of the financial loss,
not profit
Insurable Interest The insured must be in a position to lose
financially if a covered loss occurs, must exist at
the time of the loss
Deductible Amount you must pay before you begin
receiving any benefits from your insurance
company, higher deductible usually lowers the
amount of the premium
and Concepts EXAM !! Graded A+ | 2026 EXAM
UPDATE
Save
Practice questions for this set
Learn 1 /7 Study with Learn
A temporary written or oral agreement to provide insurance coverage until
a formal written policy is issued.
Choose an answer
1 Risk 2 Types of Property Loss Valuation
3 Binder 4 Indemnity
Don't know?
Terms in this set (43)
, Risk The uncertainty or chance of a loss occurring.
Pure- Insurable, only a chance of loss, no
financial gain
Speculative- Not insurable, chance of loss or
gain (ex: gambling)
Hazard Conditions or situations that increase the
probability of an insured loss occurring
Types:
Physical (individual characteristics increase
chances of the cause of loss)
Moral (lying on application)
Morale (indifference)
Peril The cause of a loss (loss is the basis of a claim)
Economic Loss The estimated total cost (both insured and
uninsured) of an accident.
Indemnity Reimbursement to the extent of the financial loss,
not profit
Insurable Interest The insured must be in a position to lose
financially if a covered loss occurs, must exist at
the time of the loss
Deductible Amount you must pay before you begin
receiving any benefits from your insurance
company, higher deductible usually lowers the
amount of the premium
