Kentucky Insurance Exam- P&C |
Questions with Answers
Risk - -chance or uncertainty of loss
- Exposure - -A condition or situation that presents a possibility of loss
- Avoid risk example - -Never get into a car- avoided getting into auto
collision
- Control Risk Example - -training workers in the safe use of welding tools
can curtail the frequency of fires on the job
- Retain the risk - -They will pay for it themselves
- Transfer Risk - -Includes insurance.
- Insurance - -A contract or device for transferring risk from a person,
business, or organization to an insurance company that agrees, in exchange
for a premium, to pay for losses through an accumulation of premiums
- Speculative risk - -Risks in which there exists both the possibility of gain
and the possibility of loss- Uninsurable
- Pure Risks - -Only possibility of loss(insurance manages this)- Insurable
- Insurable Interest - -Must have a chance of financial loss or a financial
interest in the property.
- Peril - -Cause of loss(fire and collision)
- Hazard - -Anything that increases the chance of loss(poorly tightened gas
connection)
- Physical Hazard - -Hazard that arises from the condition, occupancy, or
use of the property itself(skateboard left on porch steps)
- Morale Hazard - -an individual, through carelessness or by irresponsible
actions, can increase the possibility for a loss( a person who drives a car
carelessly because he knows a loss will be insured if an accident occurs)
- Moral hazard - -A person might create a loss situation on purpose to
collect from the insurance company(prearranged, faked theft)
Questions with Answers
Risk - -chance or uncertainty of loss
- Exposure - -A condition or situation that presents a possibility of loss
- Avoid risk example - -Never get into a car- avoided getting into auto
collision
- Control Risk Example - -training workers in the safe use of welding tools
can curtail the frequency of fires on the job
- Retain the risk - -They will pay for it themselves
- Transfer Risk - -Includes insurance.
- Insurance - -A contract or device for transferring risk from a person,
business, or organization to an insurance company that agrees, in exchange
for a premium, to pay for losses through an accumulation of premiums
- Speculative risk - -Risks in which there exists both the possibility of gain
and the possibility of loss- Uninsurable
- Pure Risks - -Only possibility of loss(insurance manages this)- Insurable
- Insurable Interest - -Must have a chance of financial loss or a financial
interest in the property.
- Peril - -Cause of loss(fire and collision)
- Hazard - -Anything that increases the chance of loss(poorly tightened gas
connection)
- Physical Hazard - -Hazard that arises from the condition, occupancy, or
use of the property itself(skateboard left on porch steps)
- Morale Hazard - -an individual, through carelessness or by irresponsible
actions, can increase the possibility for a loss( a person who drives a car
carelessly because he knows a loss will be insured if an accident occurs)
- Moral hazard - -A person might create a loss situation on purpose to
collect from the insurance company(prearranged, faked theft)
