PROPERTY AND CASUALTY INSURANCE LICENSE EXAM PREP QUESTIONS AND ANSWER | LATEST UPDATE

2024 /2025 | © copyright | This work may not be copied for profit gain | Excel!




PROPERTY AND CASUALTY INSURANCE
LICENSE EXAM PREP QUESTIONS AND
ANSWER | LATEST UPDATE
Insurance


✓ -:- Transferring risk or loss to an insurance company




Law of Large Numbers


✓ -:- Sharing risk between a large pool of people




Statistical Prediction


✓ -:- Using past losses to predict future losses




Insurable Interest


✓ -:- Policy owner must have a financial interest in the insured property




Insurable Risk


✓ -:- Risk that can be covered by insurance




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, 2024 /2025 | © copyright | This work may not be copied for profit gain | Excel!


Pure Risk


✓ -:- Circumstances that can only result in no change or a loss




Speculative Risk


✓ -:- Includes the opportunity for either gain or loss




Perils


✓ -:- Causes of loss that insurance providers cover




Loss Exposure


✓ -:- The potential for loss faced by an individual or entity




Premiums


✓ -:- Payments made to insurance companies for coverage




Homogenous Group


✓ -:- A group of people with similar characteristics or loss exposure




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