Property and Casualty Insurance EXAM study guide

Specific insurance CORRECT ANSWER This type of insurance designates a particular item to be insured Blanket insurance CORRECT ANSWER This type of insurance covers more than one item of property at a single location or one more items of property at multiple locations. Speculative CORRECT ANSWER possibility of both gain and loss. Not insurable. Pure CORRECT ANSWER only the possibility of loss. Insurable. What are the 5 methods of managing or handling risk? CORRECT ANSWER avoid, control, retain, and transfer risk. Hazard CORRECT ANSWER A condition or situation which increases the chance for loss Physical Hazards CORRECT ANSWER a hazard that arises from the condition, occupancy, or use of the property itself. ex: skateboard left on the steps Moral Hazards CORRECT ANSWER when an individual through carelessness or by irresponsible actions can increase the possibly for a loss.