Property and Casualty Insurance EXAM Correct Questions & Answers(Latest Update 2023)

Specific insurance - ANSWERSThis type of insurance designates a particular item to be insured Blanket insurance - ANSWERSThis type of insurance covers more than one item of property at a single location or one more items of property at multiple locations. Speculative - ANSWERSpossibility of both gain and loss. Not insurable. Pure - ANSWERSonly the possibility of loss. Insurable. What are the 5 methods of managing or handling risk? - ANSWERSavoid, control, retain, and transfer risk. Hazard - ANSWERSA condition or situation which increases the chance for loss Physical Hazards - ANSWERSa hazard that arises from the condition, occupancy, or use of the property itself. ex: skateboard left on the steps Moral Hazards - ANSWERSwhen an individual through carelessness or by irresponsible actions can increase the possibly for a loss. ex: person who drives carelessly just because they know they are insured. Morale Hazards - ANSWERSwhen a person might create a loss situation on purpose just to collect from the insurance company. ex: Prearranged, faked theft of someone's old vehicle so the