FL Property & Casualty 220 Webce Exam
Questions and Answers with Verified
Solutions | Latest Updated 2026
Risk Chance of loss. Insurance companies also
use
the term to refer to the insured person,
property or activity.
Peril the cause of a loss. i.e. fire, windstorm,
weather
conditions, theft, collision, etc.
Hazard condition that increases the chance of a
peril
occurring or the likely severity of a loss.
How can a Risk be insurable? must be definable, measurable, beyond
the
insured's control, common to a large group
of
people & not catastrophic. Only pure risks
are
insurable (i.e. NOT gambling, which is a
speculative risk).
,Adverse selection to "select against." Occurs when someone
who
is a high risk tries to buy or maintain
insurance;
something insurance underwriters seek to
avoid.
What is the fundamental purpose to indemnify policyholders against covered
for insurance? losses, that is, to restore them to the same
financial position they were in before the
loss.
Achieved by the insurer paying a claim for
a
covered loss as defined by policyholder's
policy.
Loss unwelcome and unplanned reduction in
economic value. Role of
insurance=indemnify
the insured for the financial value of an
insured
loss.
Direct Loss immediate result of an event caused by a
covered peril. i.e. home severely damaged
by
fire.
, Indirect Damage Loss more remote ramification than a direct
loss, but
is still a result of loss from a covered peril.
i.e.
after home fire, having to find a new
temporary
home + additional expenses due to it.
exposure the state of being subject to a possible loss
because of some hazard or contingency.
Also
used a measure of the rating units or the
premium base of a risk. Total extent of risk
an
insurer faces with an insured. i.e.
insurance
company that sells workers compensation
faces increased exposure as an insured
business's workforce increases.
moral hazards the tendencies or traits of an individual that
increase the chance of a loss. i.e.
alcoholism,
smoking, bad credit.
morale hazards arise from a state of mind, attitude, or
indifference to loss. i.e. not locking your
car,
driving recklessly.
Questions and Answers with Verified
Solutions | Latest Updated 2026
Risk Chance of loss. Insurance companies also
use
the term to refer to the insured person,
property or activity.
Peril the cause of a loss. i.e. fire, windstorm,
weather
conditions, theft, collision, etc.
Hazard condition that increases the chance of a
peril
occurring or the likely severity of a loss.
How can a Risk be insurable? must be definable, measurable, beyond
the
insured's control, common to a large group
of
people & not catastrophic. Only pure risks
are
insurable (i.e. NOT gambling, which is a
speculative risk).
,Adverse selection to "select against." Occurs when someone
who
is a high risk tries to buy or maintain
insurance;
something insurance underwriters seek to
avoid.
What is the fundamental purpose to indemnify policyholders against covered
for insurance? losses, that is, to restore them to the same
financial position they were in before the
loss.
Achieved by the insurer paying a claim for
a
covered loss as defined by policyholder's
policy.
Loss unwelcome and unplanned reduction in
economic value. Role of
insurance=indemnify
the insured for the financial value of an
insured
loss.
Direct Loss immediate result of an event caused by a
covered peril. i.e. home severely damaged
by
fire.
, Indirect Damage Loss more remote ramification than a direct
loss, but
is still a result of loss from a covered peril.
i.e.
after home fire, having to find a new
temporary
home + additional expenses due to it.
exposure the state of being subject to a possible loss
because of some hazard or contingency.
Also
used a measure of the rating units or the
premium base of a risk. Total extent of risk
an
insurer faces with an insured. i.e.
insurance
company that sells workers compensation
faces increased exposure as an insured
business's workforce increases.
moral hazards the tendencies or traits of an individual that
increase the chance of a loss. i.e.
alcoholism,
smoking, bad credit.
morale hazards arise from a state of mind, attitude, or
indifference to loss. i.e. not locking your
car,
driving recklessly.
