Property and Casualty Insurance 95 Test Question With Complete Solutions

What is a peril? - ️️A Peril is a cause of loss What is a hazard? - ️️Something that increases the chance of a loss What is the difference between a Moral hazard and a Morale Hazard? - ️️Moral Hazard - dishonesty, against the law Morale Hazard - carelessness What is the method of handling risk that involves a deductible? - ️️Retention (loss or portion of loss) If a fire causes damage to a building, what is the fire considered? - ️️A Peril What are the elements of an insurable risk? - ️️CANHAM Calculable, Affordable, Non-Catastrophic, Homogeneous, Accidental, Measurable If an insurance company is housed in Tennessee, what type of insurer are they considered? - ️️Domestic An insurance company incorporated in Wisconsin and conducting business in Minnesota is know as what type of insurer? - ️️Foreign What is it meant by "Express Authority"? - ️️Authorities are written in agent contract