WEBCE Questions with 100% Correct Answers | Verified | Updated 2024

Risk - answer-chance of loss Loss - answer-an unplanned reduction in economic value What risk is insurable? - answer-pure risk What are the two types of risk? - answer-pure risk and speculative risk Involves the possibility of a loss? - answer-pure risk Can result in either loss or gain? - answer-speculative risk Loss - answer-an unplanned reduction in economic value Direct loss - answer-immediate result of an event involving an insured peril Indirect loss - answer-a loss that results from a direct loss Loss exposure - answer-being subject to possible loss Underwriting Process - answer-the process that determines if the risk proposed for insurance should be accepted or rejected Peril - answer-the direct cause of a loss and the event that insurance protects against Life & health insurance