California Insurance Pre-Licensing Manual 52 Hour Property and Casualty Chapter 1
California Insurance Pre-Licensing
Manual 52 Hour Property and Casualty
Chapter 1 Study Guide Exam Questions
with Answers 2023-2024.
________ is the potential for incurring a loss. People buy insurance because of the
possibilities of a loss - Answer: Loss Exposure
A _____ is the immediate specific event or danger that causes a loss. Fires, thefts,
acts of nature; there are as many perils as there are losses. - Answer: Peril
, California Insurance Pre-Licensing Manual 52 Hour Property and Casualty Chapter 1
A _______ will increase the likelihood or severity of loss as a result of a peril.
Hazards are risk situations that may lead to the possibility of loss. - Answer:
Hazard
A ____ is the unexpected reduction or disappearance something of value.
Principal types of losses are the loss of property, financial loss (money) or those
losses associated with legal liability - Answer: Loss
Can be detected by any of a person's five senses. Bad brakes on a car, poor health,
gas leaks or potholes in a driveway are physical health. - Answer: Physical Hazard
Occur when an applicant lies or is dishonest. False statements on an application
prior fraudulent claims, addicts and/or illegal activity can create oral hazards. -
Answer: Moral Hazards
Morale hazards will occur when a person is indifferent to the consequences of
his/her actions. Speeding and drunk driving are morale hazards. - Answer: Morale
Hazards
Come from court actions that increase the likelihood or size of a loss. They are
usually associated with liability insurance. Lawsuits are the most obvious form of
legal hazard. Discrimination is a common cause for legal hazard in the insurance
industry. - Answer: Legal Hazards
California Insurance Pre-Licensing
Manual 52 Hour Property and Casualty
Chapter 1 Study Guide Exam Questions
with Answers 2023-2024.
________ is the potential for incurring a loss. People buy insurance because of the
possibilities of a loss - Answer: Loss Exposure
A _____ is the immediate specific event or danger that causes a loss. Fires, thefts,
acts of nature; there are as many perils as there are losses. - Answer: Peril
, California Insurance Pre-Licensing Manual 52 Hour Property and Casualty Chapter 1
A _______ will increase the likelihood or severity of loss as a result of a peril.
Hazards are risk situations that may lead to the possibility of loss. - Answer:
Hazard
A ____ is the unexpected reduction or disappearance something of value.
Principal types of losses are the loss of property, financial loss (money) or those
losses associated with legal liability - Answer: Loss
Can be detected by any of a person's five senses. Bad brakes on a car, poor health,
gas leaks or potholes in a driveway are physical health. - Answer: Physical Hazard
Occur when an applicant lies or is dishonest. False statements on an application
prior fraudulent claims, addicts and/or illegal activity can create oral hazards. -
Answer: Moral Hazards
Morale hazards will occur when a person is indifferent to the consequences of
his/her actions. Speeding and drunk driving are morale hazards. - Answer: Morale
Hazards
Come from court actions that increase the likelihood or size of a loss. They are
usually associated with liability insurance. Lawsuits are the most obvious form of
legal hazard. Discrimination is a common cause for legal hazard in the insurance
industry. - Answer: Legal Hazards
