NEW MEXICO LIFE AND HEALTH INSURANCE
EXAM ACTUAL EXAM 2026 | ALL QUESTIONS
AND CORRECT ANSWERS | VERIFIED ANSWERS
| JUST RELEASED
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Terms in this set (69)
risk Risk
Uncertainty of financial loss or a
chance of loss
hazard A hazard is a condition that makes a peril more
likely to happen or that increases the seriousness
of a loss
hazard Any factor that gives rise to peril
peril cause of loss
, Peril And immediate specific event causing loss in
giving rise to risk
Physical Hazard Arises from material structural for operational
features such as a slippery floor or unsanitary
conditions
Moral hazard Arises from people's habits and values such as
filing a false claim
Morale Hazard Arises from human carelessness or a
responsibility such as bailing to take safety
precaution
exposure
loss Last must be measurable, the insurer must be
able to place a specific monetary value
Methods of Handling Risk Avoidance
Retention
Sharing
Reduction
TransferAvoidance
EXAM ACTUAL EXAM 2026 | ALL QUESTIONS
AND CORRECT ANSWERS | VERIFIED ANSWERS
| JUST RELEASED
Save
Terms in this set (69)
risk Risk
Uncertainty of financial loss or a
chance of loss
hazard A hazard is a condition that makes a peril more
likely to happen or that increases the seriousness
of a loss
hazard Any factor that gives rise to peril
peril cause of loss
, Peril And immediate specific event causing loss in
giving rise to risk
Physical Hazard Arises from material structural for operational
features such as a slippery floor or unsanitary
conditions
Moral hazard Arises from people's habits and values such as
filing a false claim
Morale Hazard Arises from human carelessness or a
responsibility such as bailing to take safety
precaution
exposure
loss Last must be measurable, the insurer must be
able to place a specific monetary value
Methods of Handling Risk Avoidance
Retention
Sharing
Reduction
TransferAvoidance
