GEORGIA PROPERTY & CASUALTY Study
PASS Exam / Questions & Answers
INSURANCE Correct Ans-The transfer of financial responsibility associated with a potential of
a loss.
INSURABLE INTEREST Correct Ans-Any interest an insured may have in property that is the
subject of insurance.
RISK Correct Ans-Is the uncertainty or chance of a loss occurring.
PURE RISK Correct Ans-Refers to situations that can only result in a loss or no change.
SPECULATIVE RISK Correct Ans-Involves the opportunity for either loss or gain.
HAZARD Correct Ans-Is a condition or situation which creates or increases the probability of
or extent of a probable loss from a peril.
PHYSICAL HAZARD Correct Ans-A condition of the subject of insurance which creates or
increases the chance of loss, such as structural defects, occupancy, poor housekeeping or
location
PASS Exam / Questions & Answers
INSURANCE Correct Ans-The transfer of financial responsibility associated with a potential of
a loss.
INSURABLE INTEREST Correct Ans-Any interest an insured may have in property that is the
subject of insurance.
RISK Correct Ans-Is the uncertainty or chance of a loss occurring.
PURE RISK Correct Ans-Refers to situations that can only result in a loss or no change.
SPECULATIVE RISK Correct Ans-Involves the opportunity for either loss or gain.
HAZARD Correct Ans-Is a condition or situation which creates or increases the probability of
or extent of a probable loss from a peril.
PHYSICAL HAZARD Correct Ans-A condition of the subject of insurance which creates or
increases the chance of loss, such as structural defects, occupancy, poor housekeeping or
location
