IDAHO PROPERTY AND CASUALTY
Prep Exam 4 Questions With 100% Correct
Answers (Verified) Latest Update Grade A+
Insurance
Correct Answer: Is a contract win which one party agrees to indemnify the insured
party against loss,damage, or liabilty.
Insurance Transfers
Correct Answer: The risk of loss from an individual or business entity to an insurance
company which in turn spreads the costs of unexpected losses to many individuals.
Insurance Transaction
Correct Answer: Includes solicitation, negotiations, sale, and advising etc
Risk
Correct Answer: the uncertainty or chance of loss
Pure risk
,Correct Answer: Refers to situations that can only result in a loss or no change.
Always accepting in companies.
Speculative Risk
Correct Answer: involves the opportunity for either loss or gain. Not Insurable.
Hazard
Correct Answer: are conditions or situations that increase the probability of an
insured loss occurring.
Physical Hazard
Correct Answer: Are individual characteristics that increase the chances of the cause
of loss. Exist because of physical conditions like medical history, birth conditions, or
blindness
Moral Hazard
Correct Answer: Tendencies towards increased risks based on character and
reputation. Refers to applicants who lie on applications or have fraudulent insurance
claims
Morale Hazard
Correct Answer: Hazard arising out of an insured's indifference to loss because of the
existence of insurance.
, Perils
Correct Answer: are the causes of loss insured against in an insurance policy.
Loss
Correct Answer: Is defined as the reduction, decrease, or disappearance of value of
the person or property. Insured in a policy, caused by a named peril.
Sharing
Correct Answer: Is a method of dealing with risk for a group of individual persons or
businesses with the same or similar exposure to loss to share the losses that occur
within each group
transfer
Correct Answer: Most effective way to handle risk so loss is borne by another party
Avoidance
Correct Answer: Eliminating exposure to a loss
Retention
Correct Answer: Planned assumption of risk by an insured through deductibles, co-
pays, or self insurance. Accepting responsibility before insurance company pays
Prep Exam 4 Questions With 100% Correct
Answers (Verified) Latest Update Grade A+
Insurance
Correct Answer: Is a contract win which one party agrees to indemnify the insured
party against loss,damage, or liabilty.
Insurance Transfers
Correct Answer: The risk of loss from an individual or business entity to an insurance
company which in turn spreads the costs of unexpected losses to many individuals.
Insurance Transaction
Correct Answer: Includes solicitation, negotiations, sale, and advising etc
Risk
Correct Answer: the uncertainty or chance of loss
Pure risk
,Correct Answer: Refers to situations that can only result in a loss or no change.
Always accepting in companies.
Speculative Risk
Correct Answer: involves the opportunity for either loss or gain. Not Insurable.
Hazard
Correct Answer: are conditions or situations that increase the probability of an
insured loss occurring.
Physical Hazard
Correct Answer: Are individual characteristics that increase the chances of the cause
of loss. Exist because of physical conditions like medical history, birth conditions, or
blindness
Moral Hazard
Correct Answer: Tendencies towards increased risks based on character and
reputation. Refers to applicants who lie on applications or have fraudulent insurance
claims
Morale Hazard
Correct Answer: Hazard arising out of an insured's indifference to loss because of the
existence of insurance.
, Perils
Correct Answer: are the causes of loss insured against in an insurance policy.
Loss
Correct Answer: Is defined as the reduction, decrease, or disappearance of value of
the person or property. Insured in a policy, caused by a named peril.
Sharing
Correct Answer: Is a method of dealing with risk for a group of individual persons or
businesses with the same or similar exposure to loss to share the losses that occur
within each group
transfer
Correct Answer: Most effective way to handle risk so loss is borne by another party
Avoidance
Correct Answer: Eliminating exposure to a loss
Retention
Correct Answer: Planned assumption of risk by an insured through deductibles, co-
pays, or self insurance. Accepting responsibility before insurance company pays
