Kentucky Property Insurance Exam correctly answered rated A+

Kentucky Property Insurance Examinsurance - correct answer The transfer of PURE risk to the insurance company in consideration for a premium Pure Risk - correct answer the chance of loss without any chance of gain. Chance of loss or no loss. Determining fire/loss damage to a roof. Speculative Risk - correct answer has the possibility of gain or loss and is not insurable. Chance of gain or loss. Risk - correct answer The chance or UNCERTAINTY of loss exposure - correct answer Condition that could result in loss Hazard - correct answer Increases the chance of loss (wet road) The presence of a physical hazard - correct answer increases the chance of a loss occurring Peril - correct answer The cause of a loss (Fire or wind) Calculable - correct answer to be insurable, losses must be Law of Large Numbers (LLN) - correct answer Allows insurers to predict claims more acurately. Applies to large groups, not individuals. The larger the group, the more acurate the predictions are. Predicting the number of losses accurately so they can charge proper premiums Reinsurance - correct answer Most insurers buy this to protect themselves in the event of catastrophic loss