Iowa Crop Insurance Exam All Answers Correct

Iowa Crop Insurance Exam All Answers Correct Insurable Interest Economic stake in which a loss would result in financial hardship Risk uncertainly or chance of loss Brainpower Read More Two types of risk Pure and Speculative Pure Risk involves only the possibility of loss or no loss Speculative Risk Chance of loss or gain What type if risk does insurance deal with? Pure Risk Hazard condition that creates or increases the probability of a loss Physical hazard example flammable substances Moral Hazard Example Dishonesty or lack of integrity Morale Hazard Example Careless attitude or indifference Peril cause of possible loss Crop example of peril Fire, hail, wind Loss Definition Unintentional decline or disappearance of value due to contingency Two types of Loss Direct and Indirect Direct Loss financial loss resulting directly from loss to property Indirect Loss a result, or consequence, of direct loss. Indemnity Principle of insurance that says in the event of a loss, the insured will be restored the approximate financial amount of loss Actual Cash Value Definition Cost to replace an item or property at time of loss, less the depreciation Actual Cash Value Equation Replacement Cost-Depreciation Limit of Liability Maximum that insurance will pay on a loss What else is limit of liability known as? Policy Limit, limit of insurance, and limit of coverage Coinsurance definition policy condition that requires the insured to pay a portion of a loss if the insurance amount is less than the percentage of the value of the insured at time of loss Occurrence Definition A loss that occurs at a specific time and place over an amount of time- hail storm Negligence Definition lack of reasonable care that's required to protect others from the chance of harm Insuring agreement Definition Section of policy that details what is covered and perils the policy insures against Subrogation Definition Transfer to the insurance company of the insureds right to collect damages from a 3rd party Pro-rata Liability Definition method of handling insurance when more than one coverage applies to a loss. Each c