INSURANCE EXAM QUESTIONS &
ANSWERS ALREADY GRADED A+
Chance of Financial loss or gain - correct answer ✔✔SPECULATIVE RISK
gambling - correct answer ✔✔Speculative risk
Chance of Financial loss, no gain - correct answer ✔✔Pure risk
Unintended unforeseen/ financial - correct answer ✔✔loss
Not sentimental - correct answer ✔✔loss
reason loss occured - correct answer ✔✔peril
Increases likelihood or severity of loss - correct answer ✔✔hazard
Material or structural ( oily rag, icy road ) - correct answer ✔✔Physical hazard
Morality or ethics (intentional, fraud, arson) - correct answer ✔✔Moral hazard
Human carelessness or irresponsibility (cell phones, garage doors) - correct answer ✔✔Morale
hazard
Lowering hazard - correct answer ✔✔4 risk management techniques
,1. reduce
Self-insure or deductible - correct answer ✔✔4 risk management techniques
2. Retain
Do not engage in the activity - correct answer ✔✔4 risk management techniques
3. Avoid
Purchase insurance so the company is at risk not you - correct answer ✔✔4 risk management
techniques
4. transfer
No deductible - correct answer ✔✔First dollar coverage
Transfer of financial risk - correct answer ✔✔insurance
Predicts total future losses, no individual losses - correct answer ✔✔Law of large numbers
Insurance policy - correct answer ✔✔Legally binding contract
temp insurance contract 90 days, written or verbal - correct answer ✔✔binder
Never covered - correct answer ✔✔War or nuclear damage
Financial loss a person suffers when property is destroyed - correct answer ✔✔Insurable
interest
, Must be legal - correct answer ✔✔contract
Both offer and acceptance - correct answer ✔✔Contract
competent parties - not intoxicated, minor or legally insane - correct answer ✔✔Contract
consideration - trade of value
(act, promise, money) - correct answer ✔✔contract
Material facts on an app, insured believes to be true - correct answer ✔✔representations
Leaving out info on purpose - correct answer ✔✔concealment
Written statements guaranteeing something to be true, breach of warranty voids insurance
contract - correct answer ✔✔warranties
Knowing misrepresentation, concealment of material fats - correct answer ✔✔fraud
10,000
Up to 10 years prison
Combination of both - correct answer ✔✔Fraud is a felony
Makes insured financially whole, not allowing gain
-reimbursed without overpaying
-original financial standing - correct answer ✔✔indemnity
ANSWERS ALREADY GRADED A+
Chance of Financial loss or gain - correct answer ✔✔SPECULATIVE RISK
gambling - correct answer ✔✔Speculative risk
Chance of Financial loss, no gain - correct answer ✔✔Pure risk
Unintended unforeseen/ financial - correct answer ✔✔loss
Not sentimental - correct answer ✔✔loss
reason loss occured - correct answer ✔✔peril
Increases likelihood or severity of loss - correct answer ✔✔hazard
Material or structural ( oily rag, icy road ) - correct answer ✔✔Physical hazard
Morality or ethics (intentional, fraud, arson) - correct answer ✔✔Moral hazard
Human carelessness or irresponsibility (cell phones, garage doors) - correct answer ✔✔Morale
hazard
Lowering hazard - correct answer ✔✔4 risk management techniques
,1. reduce
Self-insure or deductible - correct answer ✔✔4 risk management techniques
2. Retain
Do not engage in the activity - correct answer ✔✔4 risk management techniques
3. Avoid
Purchase insurance so the company is at risk not you - correct answer ✔✔4 risk management
techniques
4. transfer
No deductible - correct answer ✔✔First dollar coverage
Transfer of financial risk - correct answer ✔✔insurance
Predicts total future losses, no individual losses - correct answer ✔✔Law of large numbers
Insurance policy - correct answer ✔✔Legally binding contract
temp insurance contract 90 days, written or verbal - correct answer ✔✔binder
Never covered - correct answer ✔✔War or nuclear damage
Financial loss a person suffers when property is destroyed - correct answer ✔✔Insurable
interest
, Must be legal - correct answer ✔✔contract
Both offer and acceptance - correct answer ✔✔Contract
competent parties - not intoxicated, minor or legally insane - correct answer ✔✔Contract
consideration - trade of value
(act, promise, money) - correct answer ✔✔contract
Material facts on an app, insured believes to be true - correct answer ✔✔representations
Leaving out info on purpose - correct answer ✔✔concealment
Written statements guaranteeing something to be true, breach of warranty voids insurance
contract - correct answer ✔✔warranties
Knowing misrepresentation, concealment of material fats - correct answer ✔✔fraud
10,000
Up to 10 years prison
Combination of both - correct answer ✔✔Fraud is a felony
Makes insured financially whole, not allowing gain
-reimbursed without overpaying
-original financial standing - correct answer ✔✔indemnity
