Property and Casualty Insurance 301 EXAM Questions with 100% Correct Answers | Verified | Updated

Specific insurance - ️️This type of insurance designates a particular item to be insured Blanket insurance - ️️This type of insurance covers more than one item of property at a single location or one more items of property at multiple locations. Speculative - ️️possibility of both gain and loss. Not insurable. Pure - ️️only the possibility of loss. Insurable. What are the 5 methods of managing or handling risk? - ️️avoid, control, retain, and transfer risk. Hazard - ️️A condition or situation which increases the chance for loss Physical Hazards - ️️a hazard that arises from the condition, occupancy, or use of the property itself. ex: skateboard left on the steps Moral Hazards - ️️when 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 - ️️when a person might create a loss situation on purpose just to collect from the insurance company.