XCEL CHAPTER 2 EXAM 2025
QUESTIONS AND ANSWERS
Which of the following refers to a condition that may increase the chance of a loss? -
ANS Hazard
Which of the following is a circumstance in which there is a possibility of both a loss or a gain? -
ANS Speculative risk
A situation in which there is ONLY a chance of loss or no loss is a - ANS pure risk
Restoring an insured to the same condition as before a loss is known as - ANS Principle of
indemnity
Moral hazard is described as the - ANS increased chance of a loss because of an insured's
dishonest tendencies
Which of the following describes the statement "The more times an event is repeated, the
more predictable the outcome becomes"? - ANS Law of large numbers
Which type of risk is gambling? - ANS Speculative risk
Which of the following is NOT considered a definition of risk? - ANS The cause of a loss
1 @COPYRIGHT THEBRIGHT 2025/2026
QUESTIONS AND ANSWERS
Which of the following refers to a condition that may increase the chance of a loss? -
ANS Hazard
Which of the following is a circumstance in which there is a possibility of both a loss or a gain? -
ANS Speculative risk
A situation in which there is ONLY a chance of loss or no loss is a - ANS pure risk
Restoring an insured to the same condition as before a loss is known as - ANS Principle of
indemnity
Moral hazard is described as the - ANS increased chance of a loss because of an insured's
dishonest tendencies
Which of the following describes the statement "The more times an event is repeated, the
more predictable the outcome becomes"? - ANS Law of large numbers
Which type of risk is gambling? - ANS Speculative risk
Which of the following is NOT considered a definition of risk? - ANS The cause of a loss
1 @COPYRIGHT THEBRIGHT 2025/2026
