Property and Casualty insurance Exam 100% Verified
Questions & Answers
Q: Insurance
Answer:
The transfer of risk through a legal contract
Q: Property
Answer:
Covers real property and personal property against damage or loss resulting from covered causes of loss called perils
Q: casualty
Answer:
covers non-property losses (3rd Party)
Q: Personal lines
Answer:
Insurance for families and individuals
Q: Commercial Lines
Answer:
Insurance for Business
Q: Risk
Answer:
Uncertainty of financial loss
Q: Pure Risk
Answer:
Chance of loss only (insurance only covers)
Q: Speculative Risk
Answer:
Chance of loss or gain
Q: law of large numbers
Answer:
as the number of homogenous loss exposures increases, the more accurate claims can be predicted from the group
, Q: Perils
Answer:
causes a loss
Q: Named Peril
Answer:
lists the perils that are covered
Q: open peril
Answer:
cover all perils except those specifically excluded by the policy
Q: hazard
Answer:
Are not causes of loss but are things that increase the chance of a peril happening.
Q: Physical Hazard
Answer:
something you can physically look at
Q: Moral Hazard
Answer:
dishonest tendencies
Q: morale hazard
Answer:
attitude of carelessness
Q: Direct Loss
Answer:
immediate physical damage to property
Q: indirect loss
Answer:
loss that happens after the direct loss but due to the loss of use of the property. Also called consequential
Q: proximate cause
Answer:
the first cause in an unbroken chain of events
Questions & Answers
Q: Insurance
Answer:
The transfer of risk through a legal contract
Q: Property
Answer:
Covers real property and personal property against damage or loss resulting from covered causes of loss called perils
Q: casualty
Answer:
covers non-property losses (3rd Party)
Q: Personal lines
Answer:
Insurance for families and individuals
Q: Commercial Lines
Answer:
Insurance for Business
Q: Risk
Answer:
Uncertainty of financial loss
Q: Pure Risk
Answer:
Chance of loss only (insurance only covers)
Q: Speculative Risk
Answer:
Chance of loss or gain
Q: law of large numbers
Answer:
as the number of homogenous loss exposures increases, the more accurate claims can be predicted from the group
, Q: Perils
Answer:
causes a loss
Q: Named Peril
Answer:
lists the perils that are covered
Q: open peril
Answer:
cover all perils except those specifically excluded by the policy
Q: hazard
Answer:
Are not causes of loss but are things that increase the chance of a peril happening.
Q: Physical Hazard
Answer:
something you can physically look at
Q: Moral Hazard
Answer:
dishonest tendencies
Q: morale hazard
Answer:
attitude of carelessness
Q: Direct Loss
Answer:
immediate physical damage to property
Q: indirect loss
Answer:
loss that happens after the direct loss but due to the loss of use of the property. Also called consequential
Q: proximate cause
Answer:
the first cause in an unbroken chain of events
