Property and Casualty Exam – Texas - Exam FX Key Facts- Questions With Complete Solutions

____ is uncertainty of loss correct answer: risk ____ is a transfer of risk from the insured to the insurer correct answer: insurance ____ risk means there is no chance of gain. It is insurable. correct answer: pure ____ risk means there is a chance of a loss or a gain. It is not insurable. correct answer: speculative a ____ is something that increases the risk. correct answer: hazard the principle of _____ governs property and casualty policies. It states that the purpose of the policy is to restore the insured financially to where they were prior to the loss correct answer: indemnity _____ _____ must exist on a casualty policy at time of loss in order for the policy to provide coverage. correct answer: insurable interest the law of _____ _____ is used to predict the likelihood of loss correct answer: large numbers ____ ____ ____ is replacement cost minus depreciation. correct answer: actual cash value ________ is a tort, or civil wrong; it is grounds for a lawsuit. correct answer: Negligence _______ is the failure to act as a reasonable person would in the same set of circumstances correct answer: negligence an _____ happens over a period of time correct answer: Occurrence a _____ may be oral or written correct answer: binder a _____ provides coverage until the policy is issued. it includes all coverages provided by the policy. correct answer: binder a ____ is a literal truth correct answer: warranty a _______ is a substantial truth. in insurance, statements of the applicant/policyowner are _______ - true to the best of their knowledge correct answer: representation ______ is an omission of a material fact. correct answer: concealment the insurer has the right to sue a negligent third party for damages paid to an insured under the concept of ______ correct answer: subrogation four parts of a policy correct answer: DICE (declarations, insuring agreement, conditions, and exclusions) the ______ list the named insured, policy limits, and premium and policy period correct answer: declarations the ____ __ ____ are found on the declaration page of the policy correct answer: limits of liability the _______ _______ describes the coverages provided correct answer: insuring agreement the _______ list the obligations of both parties, the insurer and the insured correct answer: conditions the ______ list the perils that are not covered correct answer: exclusions If the Insurer and the Insured disagre