State Farm Exam Comprehensive
Questions (Frequently Tested) and
Complete Solutions Graded A+
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The chance or uncertainty of a loss occurring. There are two types
of risk: pure and speculative. - Answer: Risk
Insurance is a --- risk because there is only the possibility of loss
not gain. - Answer: Pure
,Gambling is a --- risk because there is a possibility of a loss or gain.
--- risks are not insurable. - Answer: Speculative
A condition that increases the chance of a loss. --- are not losses,
the loss has not happened, it just increases the chance of a loss.
There are three types of ---: Physical, Moral, Morale. - Answer:
Hazard
--- Hazards can be determined by the senses. Examples would
include steps with no handrails, trampolines, pools without
fences, vicious dogs, faulty wiring and grease accumulation on a
hood. These types of hazards are what the insurance company is
looking for when they do outside inspections for insurability on
homes. - Answer: Physical
--- Hazards involve the dishonest predisposition of the insured.
Examples would include an applicant convicted of arson or
falsifying a claim. - Answer: Moral
--- Hazards involve applicants who have a careless attitude about
their property because they have insurance. Examples would
include an insured who leaves her jewelry out in the open and
doesn't care because she has insurance, or a person who leaves
their keys in an unlocked car. - Answer: Morale
,The cause of loss. Some examples are fire, lightning, theft etc. We
will be studying perils quite a bit in the dwelling and homeowner
forms. - Answer: Peril
A financial loss or hardship. It is one of the elements of
insurability; in order for a loss to be insurable, it must cause
financial or ---. The insurance company must receive enough
premium to make it feasible to provide insurance, the insured has
to feel financial distress in order to purchase the insurance
product. - Answer: Economic Loss
principle of insurance that provides that when a loss occurs, the
insured should be restored to the approximate financial condition
he occupied before the loss occurred, no better or no worse. -
Answer: Principle of Indemnity
any actual, lawful, and substantial economic interest in the safety
or preservation of the subject of the insurance from loss or
destruction of financial damage or impairment. There must be
insurable interest at the time of loss. - Answer: Insurable Interest
dollar amount the insured must pay on each loss to which the ---
applies; the insurance company pays the remainder of each
, covered loss, up to the policy limits. Insured will sustain a portion
of the loss with a ---. Insured sustains a portion of the loss vs
coinsurance is where the insured sustains a portion of the limit. -
Answer: Deductible
A --- loss is the loss that actually happens to the property.
Example: A fire to a house. - Answer: Direct
An --- loss is the financial consequential impact of the direct loss,
including expense the insured would not have incurred had there
not been a direct loss. Example: the insured had to move into a
hotel because of the fire loss to their house. Fire is a direct loss.
Hotel expenses are the indirect loss. - Answer: Indirect Loss
A --- peril policy is an insurance policy that insures only against
perils that are specifically listed in the policy. Examples: Fire, wind,
lightning. The insurance company determines the perils. - Answer:
Named Peril
An --- peril policy is an insurance policy that insures against all
risks of physical loss, except those that are specifically excluded in
the policy. This type of contract is also called all risk or special
coverage. - Answer: Open Peril
Questions (Frequently Tested) and
Complete Solutions Graded A+
Professional Academic Assistance Services
Services Offered
• Proctored Exam Assistance
• Online Class Management (Full Course Support)
• Exam Preparation & Study Materials
• Assignments and Coursework Support
• Essay and Research Paper Writing
• Discussion Posts & Responses
• Editing and Proofreading
• Confidential Academic Consultation
Contact Information
Email:
WhatsApp link: https://wa.me/254704846336
Fast Response | Confidential | Reliable Academic Support
Helping Students Achieve Academic Excellence
The chance or uncertainty of a loss occurring. There are two types
of risk: pure and speculative. - Answer: Risk
Insurance is a --- risk because there is only the possibility of loss
not gain. - Answer: Pure
,Gambling is a --- risk because there is a possibility of a loss or gain.
--- risks are not insurable. - Answer: Speculative
A condition that increases the chance of a loss. --- are not losses,
the loss has not happened, it just increases the chance of a loss.
There are three types of ---: Physical, Moral, Morale. - Answer:
Hazard
--- Hazards can be determined by the senses. Examples would
include steps with no handrails, trampolines, pools without
fences, vicious dogs, faulty wiring and grease accumulation on a
hood. These types of hazards are what the insurance company is
looking for when they do outside inspections for insurability on
homes. - Answer: Physical
--- Hazards involve the dishonest predisposition of the insured.
Examples would include an applicant convicted of arson or
falsifying a claim. - Answer: Moral
--- Hazards involve applicants who have a careless attitude about
their property because they have insurance. Examples would
include an insured who leaves her jewelry out in the open and
doesn't care because she has insurance, or a person who leaves
their keys in an unlocked car. - Answer: Morale
,The cause of loss. Some examples are fire, lightning, theft etc. We
will be studying perils quite a bit in the dwelling and homeowner
forms. - Answer: Peril
A financial loss or hardship. It is one of the elements of
insurability; in order for a loss to be insurable, it must cause
financial or ---. The insurance company must receive enough
premium to make it feasible to provide insurance, the insured has
to feel financial distress in order to purchase the insurance
product. - Answer: Economic Loss
principle of insurance that provides that when a loss occurs, the
insured should be restored to the approximate financial condition
he occupied before the loss occurred, no better or no worse. -
Answer: Principle of Indemnity
any actual, lawful, and substantial economic interest in the safety
or preservation of the subject of the insurance from loss or
destruction of financial damage or impairment. There must be
insurable interest at the time of loss. - Answer: Insurable Interest
dollar amount the insured must pay on each loss to which the ---
applies; the insurance company pays the remainder of each
, covered loss, up to the policy limits. Insured will sustain a portion
of the loss with a ---. Insured sustains a portion of the loss vs
coinsurance is where the insured sustains a portion of the limit. -
Answer: Deductible
A --- loss is the loss that actually happens to the property.
Example: A fire to a house. - Answer: Direct
An --- loss is the financial consequential impact of the direct loss,
including expense the insured would not have incurred had there
not been a direct loss. Example: the insured had to move into a
hotel because of the fire loss to their house. Fire is a direct loss.
Hotel expenses are the indirect loss. - Answer: Indirect Loss
A --- peril policy is an insurance policy that insures only against
perils that are specifically listed in the policy. Examples: Fire, wind,
lightning. The insurance company determines the perils. - Answer:
Named Peril
An --- peril policy is an insurance policy that insures against all
risks of physical loss, except those that are specifically excluded in
the policy. This type of contract is also called all risk or special
coverage. - Answer: Open Peril
