Insurance webce Exam Questions and
Answers with Verified Solutions | Latest
Updated 2026
risk Chance of loss
Pure risk If it's pure you can insure
Speculative riak Loss or gain
peril The cause of loss
Life insurance peril Death
Health insurance peril Illness, accidental injury, disability
hazard Increases chance of peril
Risk Transfer shifting risk to another party
Underwriting Assessing an applicant
Law of Large Numbers Mathematical principle of probability
, Moral Hazard Tendencies that increase risk
Morale Hazard Attitude or state of mind
Physical Hazard Characteristics that increase risk
Risk Avoidance Strategy to deal with risk
Risk Reduction Reduce exposure to risk
Risk Retention Choosing to use existing assets to pay for
loss
Deductibles A stated sun of money that the insured
must
pay
risk sharing Allocating ownership of a part of the risk to
another party
Risk Transfer Transferring risk to a third party
insurable risk If he or she meets certain criteria
mortality Death
Answers with Verified Solutions | Latest
Updated 2026
risk Chance of loss
Pure risk If it's pure you can insure
Speculative riak Loss or gain
peril The cause of loss
Life insurance peril Death
Health insurance peril Illness, accidental injury, disability
hazard Increases chance of peril
Risk Transfer shifting risk to another party
Underwriting Assessing an applicant
Law of Large Numbers Mathematical principle of probability
, Moral Hazard Tendencies that increase risk
Morale Hazard Attitude or state of mind
Physical Hazard Characteristics that increase risk
Risk Avoidance Strategy to deal with risk
Risk Reduction Reduce exposure to risk
Risk Retention Choosing to use existing assets to pay for
loss
Deductibles A stated sun of money that the insured
must
pay
risk sharing Allocating ownership of a part of the risk to
another party
Risk Transfer Transferring risk to a third party
insurable risk If he or she meets certain criteria
mortality Death
