New Mexico health and life insurance exam Questions with Detailed Verified Answers

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New Mexico health and life insurance
exam Questions with Detailed Verified
Answers

Question: risk


Ans: Risk


Question: Uncertainty of financial loss or a chance of loss


Ans:


Question: hazard


Ans: A hazard is a condition that makes a peril more likely to happen or that
increases the seriousness of a loss


Question: hazard


Ans: Any factor that gives rise to peril


Question: peril


Ans: cause of loss


Question: Peril

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Ans: And immediate specific event causing loss in giving rise to risk


Question: Physical Hazard


Ans: Arises from material structural for operational features such as a slippery
floor or unsanitary conditions


Question: Moral hazard


Ans: Arises from people's habits and values such as filing a false claim


Question: Morale Hazard


Ans: Arises from human carelessness or a responsibility such as bailing to take
safety precaution


Question: exposure


Ans:


Question: loss


Ans: Last must be measurable, the insurer must be able to place a specific
monetary value


Question: Methods of Handling Risk

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Ans: Avoidance


Retention


Sharing


Reduction


TransferAvoidance


Question: Elements of insurable risks