STATE FARM INSURANCE EXAM
What transfers the risk of loss from an individual or business entity to an insurance
company - Answers -Insurance
The uncertainty of a risk or loss occurring - Answers -risk
A risk that can only result in a loss or no change with no opportunity for financial gain -
Answers -pure risk
A risk that allows an opportunity for loss or gain (such as gambling) - Answers -
speculative risk
CONDITIONS or SITUATIONS that increase the chance of a loss occurring (such as
lifestyle, health conditions, scuba diving, sky diving) - Answers -hazards
The CAUSES of loss...(like fire, explosion, windstorm, flood, theft, collision) - Answers -
perils
insurance for an untimely death (died from heart attack) - Answers -life insurance
insurance for sickness or accidental injury (got cancer or broken bones) - Answers -
health insurance
insurance for the loss of physical property (wind storm damaged the house) - Answers -
property insurance
insurance for the loss or damage of property and resulting liabilities (guy fell off the
ladder while working on the roof) - Answers -casualty insurance
the reduction, decrease or disappearance of value from the person or property insured.
- Answers -loss
a method used to transfer the loss from the person or property to the insurance
company - Answers -insurance
A unit of measurement used for determining rates charged for certain coverages
(insurances) - Answers -exposure
you decide not to fly in an airplane because it's too dangerous so you AVOID it. This is
called risk - Answers -avoidance
What transfers the risk of loss from an individual or business entity to an insurance
company - Answers -Insurance
The uncertainty of a risk or loss occurring - Answers -risk
A risk that can only result in a loss or no change with no opportunity for financial gain -
Answers -pure risk
A risk that allows an opportunity for loss or gain (such as gambling) - Answers -
speculative risk
CONDITIONS or SITUATIONS that increase the chance of a loss occurring (such as
lifestyle, health conditions, scuba diving, sky diving) - Answers -hazards
The CAUSES of loss...(like fire, explosion, windstorm, flood, theft, collision) - Answers -
perils
insurance for an untimely death (died from heart attack) - Answers -life insurance
insurance for sickness or accidental injury (got cancer or broken bones) - Answers -
health insurance
insurance for the loss of physical property (wind storm damaged the house) - Answers -
property insurance
insurance for the loss or damage of property and resulting liabilities (guy fell off the
ladder while working on the roof) - Answers -casualty insurance
the reduction, decrease or disappearance of value from the person or property insured.
- Answers -loss
a method used to transfer the loss from the person or property to the insurance
company - Answers -insurance
A unit of measurement used for determining rates charged for certain coverages
(insurances) - Answers -exposure
you decide not to fly in an airplane because it's too dangerous so you AVOID it. This is
called risk - Answers -avoidance
