Property/Casualty Illinois for
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,Terms in this set (140)
ISO creates standardized property
and casualty insurance policies
that are approved by states and
used as a standard policy for
insurers.
ISO (Insurance
Services Office)
-they can be modified to comply
with state regulations
-may be modified to a degree for
insurance companies to create
their own policy form
Insurance transfers the risk of loss
from an individual or business
define entity to an insurance company,
insurance which in turn spreads the costs of
unexpected losses to many
individuals
uncertainty concerning the
define risk
occurrence of a loss
What are the 2 Pure and Speculative
types of risk?
, only pure risk is insurable since it
What is the can only result in a loss or no
difference change
between pure
and speculative speculative risk is not insurable
risk? since it can result in a loss or gain
(like gambling)
1) Physical - hazards arising from
the material, structural, or
operational features
2) Moral - refers to applicants that
What are the 3 may lie on their application
types of
hazards? 3) Morale - increase the hazard
presented by a risk arising from the
insured's indifference to loss
because of the existence of
insurance (combustible material
near a furnace)
peril causes of loss
, conditions/circumstances that
increase the probability of an
hazards insured loss occurring
there are 3 types
direct physical damage to
buildings/personal property
direct loss
*this includes proximate cause:
chain of events resulting from a
covered peril
losses considered a result of direct
loss; this usually results from when
indirect
repairs begin so it could be
loss/consequen
additional living expenses for
tial losses
homeowners or loss of profits for
businesses
lists of specific perils; no coverage
named peril
for unlisted perils
open perils (all insures against any risk of loss that
risk) is not excluded
State Exam / Actual Exam
Questions with Certified Solutions
/ Newest
Save
Practice questions for this set
Learn
Studied 7 terms
Nice work, you're crushing it
Continue studying in Learn
,Terms in this set (140)
ISO creates standardized property
and casualty insurance policies
that are approved by states and
used as a standard policy for
insurers.
ISO (Insurance
Services Office)
-they can be modified to comply
with state regulations
-may be modified to a degree for
insurance companies to create
their own policy form
Insurance transfers the risk of loss
from an individual or business
define entity to an insurance company,
insurance which in turn spreads the costs of
unexpected losses to many
individuals
uncertainty concerning the
define risk
occurrence of a loss
What are the 2 Pure and Speculative
types of risk?
, only pure risk is insurable since it
What is the can only result in a loss or no
difference change
between pure
and speculative speculative risk is not insurable
risk? since it can result in a loss or gain
(like gambling)
1) Physical - hazards arising from
the material, structural, or
operational features
2) Moral - refers to applicants that
What are the 3 may lie on their application
types of
hazards? 3) Morale - increase the hazard
presented by a risk arising from the
insured's indifference to loss
because of the existence of
insurance (combustible material
near a furnace)
peril causes of loss
, conditions/circumstances that
increase the probability of an
hazards insured loss occurring
there are 3 types
direct physical damage to
buildings/personal property
direct loss
*this includes proximate cause:
chain of events resulting from a
covered peril
losses considered a result of direct
loss; this usually results from when
indirect
repairs begin so it could be
loss/consequen
additional living expenses for
tial losses
homeowners or loss of profits for
businesses
lists of specific perils; no coverage
named peril
for unlisted perils
open perils (all insures against any risk of loss that
risk) is not excluded
