WebCE Property And Casualty Prep Exam with Correct Solutions 2024

WebCE Property And Casualty Prep Exam with Correct Solutions 2024 Risk - Answer -Chance of loss 5 Risk or Loss Factors - Answer -1. Risk 2. Loss 3. Exposure 4. Peril 5. Hazard Insurance allows: - Answer -Individual or group to transfer over to insurance company the risk of financial loss from a destructive event Fundamental purpose of insurance is: - Answer -To indemnify policyholder against covered losses or restore policyholder back to same financial position they were in before Insurance companies may used term risks to refer to insured: - Answer -1. Person 2. Property 3. Activity Loss - Answer -Unplanned or unwelcome reduction in economic value What is Direct and Indirect loss - Answer -1. Direct loss - immediate result of and event caused by a covered peril 2. Indirect loss - remote result of an event caused by covered peril Exposure - Answer -State of being subject to a possible loss Insurer measures exposure by - Answer -Units to the person, property or event (more exposure units, the greater the premium) Exposure is also referred to as: - Answer -Total risk an insurer faces with insured Peril - Answer -The destructive event that insurance guards against