Property/Casualty Illinois for State Exam Questions with Answers 100% Correct || (2024) Certified!!!

ISO (Insurance Services Office) - ISO creates standardized property and casualty insurance policies that are approved by states and used as a standard policy for insurers. -they can be modified to comply with state regulations -may be modified to a degree for insurance companies to create their own policy form define insurance - Insurance transfers the risk of loss from an individual or business entity to an insurance company, which in turn spreads the costs of unexpected losses to many individuals define risk - uncertainty concerning the occurrence of a loss What are the 2 types of risk? - Pure and Speculative What is the difference between pure and speculative risk? - only pure risk is insurable since it can only result in a loss or no change speculative risk is not insurable since it can result in a loss or gain (like gambling) What are the 3 types of hazards? - 1) Physical - hazards arising from the material, structural, or operational features