20-44 Personal Lines UPDATED ACTUAL
Exam Questions and CORRECT Answers
Risk - CORRECT ANSWER - the chance of financial loss
assumed risk - CORRECT ANSWER - Amount of risk the insured is willing to adsorb.
Pure Risk - CORRECT ANSWER - A situation that present the opportunity for loss but no
opportunity for gain.(Insurable)
Speculative Risk - CORRECT ANSWER - Uncertainty about an event under consideration
that could produce either a profit or a loss
Insurance - CORRECT ANSWER - A contract one indemnifies or pays another a specific
amount
Law of Large Numbers - CORRECT ANSWER - The larger the number of similar
exposure, the more predictable and accurate the estimate of expected losses.
Policy - CORRECT ANSWER - Written contract/agreement for insurance
Declarations Page - CORRECT ANSWER - Named insured, Address, Policy Period,
Premium, Limits, and Loss Payee/Mortgagee
Insuring Agreement - CORRECT ANSWER - insurance promises to make payment for
covered perils to the insured.
Coverage form - CORRECT ANSWER - constructs a policy
Exam Questions and CORRECT Answers
Risk - CORRECT ANSWER - the chance of financial loss
assumed risk - CORRECT ANSWER - Amount of risk the insured is willing to adsorb.
Pure Risk - CORRECT ANSWER - A situation that present the opportunity for loss but no
opportunity for gain.(Insurable)
Speculative Risk - CORRECT ANSWER - Uncertainty about an event under consideration
that could produce either a profit or a loss
Insurance - CORRECT ANSWER - A contract one indemnifies or pays another a specific
amount
Law of Large Numbers - CORRECT ANSWER - The larger the number of similar
exposure, the more predictable and accurate the estimate of expected losses.
Policy - CORRECT ANSWER - Written contract/agreement for insurance
Declarations Page - CORRECT ANSWER - Named insured, Address, Policy Period,
Premium, Limits, and Loss Payee/Mortgagee
Insuring Agreement - CORRECT ANSWER - insurance promises to make payment for
covered perils to the insured.
Coverage form - CORRECT ANSWER - constructs a policy
