Property and Casualty insurance exam (A+ GRADED)

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