PNC License Exam - Chapter 1
questions well answered
Depreciation
reduction in value, particularly due to wear and tear
Exposure
susceptibility to risk
Implied Warranty
a legal term meaning that a product is suitable for its intended purpose and that it fits an
ordinary buyer's expectations
Insurance policy
a contract between a policyowner (and/or insured) and an insurance company which agrees to
pay the insured or the beneficiary for loss caused by specific events
obsolescence
depreciation in the value of a property due to becoming outdated
, Insurer (principal)
the company who issues an insurance policy
premium
the money paid to the insurance company for the insurance policy
tort
a wrongful act or the violation of someone's rights that leads to legal liability
Law of large numbers
the larger the number of people with similar exposure to loss, the more predictable actual
losses will be (as the number of people in a risk pool increases, future losses become more
predictable)
Insurace
transfer of risk of loss
Insurable Interest
person or property covered by an insurance policy
Three elements of insurable risk
questions well answered
Depreciation
reduction in value, particularly due to wear and tear
Exposure
susceptibility to risk
Implied Warranty
a legal term meaning that a product is suitable for its intended purpose and that it fits an
ordinary buyer's expectations
Insurance policy
a contract between a policyowner (and/or insured) and an insurance company which agrees to
pay the insured or the beneficiary for loss caused by specific events
obsolescence
depreciation in the value of a property due to becoming outdated
, Insurer (principal)
the company who issues an insurance policy
premium
the money paid to the insurance company for the insurance policy
tort
a wrongful act or the violation of someone's rights that leads to legal liability
Law of large numbers
the larger the number of people with similar exposure to loss, the more predictable actual
losses will be (as the number of people in a risk pool increases, future losses become more
predictable)
Insurace
transfer of risk of loss
Insurable Interest
person or property covered by an insurance policy
Three elements of insurable risk
