WebCE Property & Casualty Prep Exam With 100% Correct Verified Answers

WebCE Property & Casualty Prep Exam With 100% Correct Verified Answers Risk Correct Answer: Chance of loss 5 Risk or Loss Factors Correct Answer: 1. Risk 2. Loss 3. Exposure 4. Peril 5. Hazard Insurance allows: Correct Answer: Individual or group to transfer over to insurance company the risk of financial loss from a destructive event Fundamental purpose of insurance is: Correct Answer: To indemnify policyholder against covered losses or restore policyholder back to same financial position they were in before Insurance companies may used term risks to refer to insured: Correct Answer: 1. Person 2. Property 3. Activity Loss Correct Answer: Unplanned or unwelcome reduction in economic value What is Direct and Indirect loss Correct Answer: 1. Direct loss - immediate result of and event caused by a covered peril 2. Indirect loss - remote result of an event caused by covered peril Exposure Correct Answer: State of being subject to a possible loss Insurer measures exposure by Correct Answer: Units to the person, property or event (more exposure units, the greater the premium) Exposure is also referred to as: Correct Answer: Total risk an insurer faces with insured Peril Correct Answer: The destructive event that insurance guards against 6 types of peril Correct Answer: 1. Fire 2. Explosion 3. Windstorm 4. Flood 5.Theft 6. Collision Insurance policy provides Correct Answer: Financial protection against losses caused