FPQP: Module4 Questions and Answers with Verified Solutions | Latest
2026 Update
Q: what are the 3 rules of risk management
Answer:
1. Don't risk more than you can afford to lose.
2. Consider the odds.
3. Don't risk a lot for a little.
Q: Perils
Answer:
Cause of Loss
Q: Moral Hazard
Answer:
A moral hazard exists when people are dishonest-e.g., an employee stealing
from an employer, an insured person lying when submitting a claim to increase the
likelihood of
a claim. This type of hazard is the primary source of insurance fraud
, FPQP: Module4 Questions and Answers with Verified Solutions | Latest
2026 Update
Q: Indemnity
Answer:
Another legal concept pertaining to insurance is indemnity, which is based on the
idea that when persons suffer a loss, they should be "made whole"-i.e., they should
be put
back into the same position they would have been in if the loss had not occurred.
Policy owners
should not profit from a loss; they should merely be reimbursed for the loss.
Q: What are the 4 basic sections in a insurance policy
Answer:
declarations
insuring agreement
exclusions
conditions
2026 Update
Q: what are the 3 rules of risk management
Answer:
1. Don't risk more than you can afford to lose.
2. Consider the odds.
3. Don't risk a lot for a little.
Q: Perils
Answer:
Cause of Loss
Q: Moral Hazard
Answer:
A moral hazard exists when people are dishonest-e.g., an employee stealing
from an employer, an insured person lying when submitting a claim to increase the
likelihood of
a claim. This type of hazard is the primary source of insurance fraud
, FPQP: Module4 Questions and Answers with Verified Solutions | Latest
2026 Update
Q: Indemnity
Answer:
Another legal concept pertaining to insurance is indemnity, which is based on the
idea that when persons suffer a loss, they should be "made whole"-i.e., they should
be put
back into the same position they would have been in if the loss had not occurred.
Policy owners
should not profit from a loss; they should merely be reimbursed for the loss.
Q: What are the 4 basic sections in a insurance policy
Answer:
declarations
insuring agreement
exclusions
conditions
