PROPERTY AND CASUALTY INSURANCE TEST QUESTION
NOTES
What is the difference between a Moral hazard and a Morale
3.
Hazard?: Moral Hazard - dishonesty, against the law
Morale Hazard - carelessness
What is the method of handling risk that involves a deductible?:
4.
Retention (loss or portion of loss)
d?: A Peril
5. If a fire causes damage to a building, what is the fire considere
What are the elements of an insurable risk?:
6.
CANHAM Calculable, Attordable, Non-Catastrophic, Homogeneous,
Accidental, Measurable
If an insurance company is housed in Tennessee, what type of insurer
7.
are they considered?: Domestic
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, An insurance company incorporated in Wisconsin and conducting
8.
business in Minnesota is know as what type of insurer?: Foreign
9. What is it meant by "Express Authority"?: Authorities are written in agent contra
10. What is a term that is typically used to describe an Insurance
Agent?: Fiduciary
- A person in a position of financial trust
business,
What is a contract or device for transferring risk from a
11.
persons, or organization to an insurance company?:
Insurance
12.What is Reinsurance?: When insurance companies purchase insurance to cover their own
exposures to loss
13. What is a fiduciary?: A person in a position of financial trust
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NOTES
What is the difference between a Moral hazard and a Morale
3.
Hazard?: Moral Hazard - dishonesty, against the law
Morale Hazard - carelessness
What is the method of handling risk that involves a deductible?:
4.
Retention (loss or portion of loss)
d?: A Peril
5. If a fire causes damage to a building, what is the fire considere
What are the elements of an insurable risk?:
6.
CANHAM Calculable, Attordable, Non-Catastrophic, Homogeneous,
Accidental, Measurable
If an insurance company is housed in Tennessee, what type of insurer
7.
are they considered?: Domestic
1/
14
, An insurance company incorporated in Wisconsin and conducting
8.
business in Minnesota is know as what type of insurer?: Foreign
9. What is it meant by "Express Authority"?: Authorities are written in agent contra
10. What is a term that is typically used to describe an Insurance
Agent?: Fiduciary
- A person in a position of financial trust
business,
What is a contract or device for transferring risk from a
11.
persons, or organization to an insurance company?:
Insurance
12.What is Reinsurance?: When insurance companies purchase insurance to cover their own
exposures to loss
13. What is a fiduciary?: A person in a position of financial trust
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