Foundever Insurance Licensing
Study online at https://quizlet.com/_d8wwth
1. Depreciation a reduction in value (particularly due to wear
and tear)
2. Exposure susceptibility to risk
3. Implied Warranty that the good or service is suitable for the pur-
pose for which it was sold and fits buyers ex-
pectations
4. Insurance Policy a contract between insured and an insurance
company which agrees to pay the insured for
loss
5. Insurer (principal) the company who issues an insurance policy
6. Premium an amount to be paid for an insurance policy.
7. Law of Large Numbers the larger the number of people with a similar
exposure to loss, the more predictable actual
losses will be
8. Insurable Interest the insured would incur a financial loss if the
insured property was damaged; must exist at
the time of loss
9. Risk the uncertainty or chance of loss occurring
10. Pure Risk a chance of loss or no change, but no chance of
gain; only risk insurable
11. Speculative Risk a situation in which either gain or loss is possi-
ble
12. Peril causes of loss insured
, Foundever Insurance Licensing
Study online at https://quizlet.com/_d8wwth
13. Hazards conditions that increase the chance of a loss
14. Moral Hazards hazards that result from dishonesty
15. Morale Hazards hazards that result from carelessness
16. Physical Hazards hazards that result from material, structural or
operational risks
17. Name Peril losses only covered if listed
18. Open Peril all losses covered unless excluded
19. Indemity insured can't profit from loss; aka reimburse-
ment
20. Subrogation insured can not collect twice; insurer's legal
right to collect from 3rd party
21. Direct Loss reduction of value due to direct physical dam-
age
22. Indirect Loss losses that occur as a result of a direct loss
23. Accident sudden unplanned event
24. Occurrence repeated exposure to conditions resulting in
damage
25. Negligence failure to take proper care to prevent damage
26. Burglary forced entry with felonious intent
27. Robbery taking property using force or violence
28. Theft any act of stealing; includes burglary & robbery
Study online at https://quizlet.com/_d8wwth
1. Depreciation a reduction in value (particularly due to wear
and tear)
2. Exposure susceptibility to risk
3. Implied Warranty that the good or service is suitable for the pur-
pose for which it was sold and fits buyers ex-
pectations
4. Insurance Policy a contract between insured and an insurance
company which agrees to pay the insured for
loss
5. Insurer (principal) the company who issues an insurance policy
6. Premium an amount to be paid for an insurance policy.
7. Law of Large Numbers the larger the number of people with a similar
exposure to loss, the more predictable actual
losses will be
8. Insurable Interest the insured would incur a financial loss if the
insured property was damaged; must exist at
the time of loss
9. Risk the uncertainty or chance of loss occurring
10. Pure Risk a chance of loss or no change, but no chance of
gain; only risk insurable
11. Speculative Risk a situation in which either gain or loss is possi-
ble
12. Peril causes of loss insured
, Foundever Insurance Licensing
Study online at https://quizlet.com/_d8wwth
13. Hazards conditions that increase the chance of a loss
14. Moral Hazards hazards that result from dishonesty
15. Morale Hazards hazards that result from carelessness
16. Physical Hazards hazards that result from material, structural or
operational risks
17. Name Peril losses only covered if listed
18. Open Peril all losses covered unless excluded
19. Indemity insured can't profit from loss; aka reimburse-
ment
20. Subrogation insured can not collect twice; insurer's legal
right to collect from 3rd party
21. Direct Loss reduction of value due to direct physical dam-
age
22. Indirect Loss losses that occur as a result of a direct loss
23. Accident sudden unplanned event
24. Occurrence repeated exposure to conditions resulting in
damage
25. Negligence failure to take proper care to prevent damage
26. Burglary forced entry with felonious intent
27. Robbery taking property using force or violence
28. Theft any act of stealing; includes burglary & robbery
