CA Life and Health Exam questions with correct answers

What is insurance? ans Insurance is the legal contract where two parties agree that if something will happen, a value will be exchanged. What's the difference between pure risk and speculative risk? ans Pure risk is when you'll lose it all or there will be no change. Speculative risk you can either win or lose. What is peril? ans peril is the causes of loss insured against in an insurance policy What is hazard? ans conditions that increase the probability of something bad happening What's the diff between moral, morale, and physical hazard? ans physical is the hazard that results from physical body issues. Moral hazard is the evaluation of character (lying) morale hazard is an indifference which causes risk. What is the law of large numbers? ans the larger the number of people more exposed to risk, the more predictable the risk outcome. What is an insurable event? ans the more predictable an event, the more insurable it becomes What's the diff between contract and tort law ans tort is non-contract and private