Insurance Exam with All Correct & 100%
Verified Answers| Latest Version| Already
Graded A+ (Just Released)
SPECULATIVE RISK ✔Correct Answer--Chance of Financial loss or gain
Speculative risk ✔Correct Answer--gambling
Pure risk ✔Correct Answer--Chance of Financial loss, no gain
loss ✔Correct Answer--Unintended unforeseen/ financial
loss ✔Correct Answer--Not sentimental
peril ✔Correct Answer--reason loss occured
hazard ✔Correct Answer--Increases likelihood or severity of loss
Physical hazard ✔Correct Answer--Material or structural ( oily rag, icy road )
Moral hazard ✔Correct Answer--Morality or ethics (intentional, fraud, arson)
Morale hazard ✔Correct Answer--Human carelessness or irresponsibility (cell phones, garage
doors)
4 risk management techniques
1. reduce ✔Correct Answer--Lowering hazard
4 risk management techniques
2. Retain ✔Correct Answer--Self-insure or deductible
4 risk management techniques
3. Avoid ✔Correct Answer--Do not engage in the activity
4 risk management techniques
4. transfer ✔Correct Answer--Purchase insurance so the company is at risk not you
First dollar coverage ✔Correct Answer--No deductible
insurance ✔Correct Answer--Transfer of financial risk
Law of large numbers ✔Correct Answer--Predicts total future losses, no individual losses
Legally binding contract ✔Correct Answer--Insurance policy
binder ✔Correct Answer--temp insurance contract 90 days, written or verbal
, War or nuclear damage ✔Correct Answer--Never covered
Insurable interest ✔Correct Answer--Financial loss a person suffers when property is destroyed
contract ✔Correct Answer--Must be legal
Contract ✔Correct Answer--Both offer and acceptance
Contract ✔Correct Answer--competent parties - not intoxicated, minor or legally insane
contract ✔Correct Answer--consideration - trade of value
(act, promise, money)
representations ✔Correct Answer--Material facts on an app, insured believes to be true
concealment ✔Correct Answer--Leaving out info on purpose
warranties ✔Correct Answer--Written statements guaranteeing something to be true, breach of
warranty voids insurance contract
fraud ✔Correct Answer--Knowing misrepresentation, concealment of material fats
Fraud is a felony ✔Correct Answer--10,000
Up to 10 years prison
Combination of both
indemnity ✔Correct Answer--Makes insured financially whole, not allowing gain
-reimbursed without overpaying
-original financial standing
Adhesion ✔Correct Answer--Written by one party (insurer), insured must adhere to contract
without negotiation (courts will interpret ambiguity to favor insured)
ambiguity ✔Correct Answer--unclear
Aleatory contract ✔Correct Answer--Equal value not given by both parties, money exchange not =
Unilateral contract
NOT BILATERAL ✔Correct Answer--Enforceable by one party
-insurer has duty to perform
-contract enforceable by insured
-insured can sue
Conditional contract ✔Correct Answer--Certain rules required both parties
underrwiter ✔Correct Answer--Selects risks for the insured
adjuster ✔Correct Answer--claims, losses, negotiates claim settlements
actuary ✔Correct Answer--mathmetitcial who develops the rates for the insurer
Verified Answers| Latest Version| Already
Graded A+ (Just Released)
SPECULATIVE RISK ✔Correct Answer--Chance of Financial loss or gain
Speculative risk ✔Correct Answer--gambling
Pure risk ✔Correct Answer--Chance of Financial loss, no gain
loss ✔Correct Answer--Unintended unforeseen/ financial
loss ✔Correct Answer--Not sentimental
peril ✔Correct Answer--reason loss occured
hazard ✔Correct Answer--Increases likelihood or severity of loss
Physical hazard ✔Correct Answer--Material or structural ( oily rag, icy road )
Moral hazard ✔Correct Answer--Morality or ethics (intentional, fraud, arson)
Morale hazard ✔Correct Answer--Human carelessness or irresponsibility (cell phones, garage
doors)
4 risk management techniques
1. reduce ✔Correct Answer--Lowering hazard
4 risk management techniques
2. Retain ✔Correct Answer--Self-insure or deductible
4 risk management techniques
3. Avoid ✔Correct Answer--Do not engage in the activity
4 risk management techniques
4. transfer ✔Correct Answer--Purchase insurance so the company is at risk not you
First dollar coverage ✔Correct Answer--No deductible
insurance ✔Correct Answer--Transfer of financial risk
Law of large numbers ✔Correct Answer--Predicts total future losses, no individual losses
Legally binding contract ✔Correct Answer--Insurance policy
binder ✔Correct Answer--temp insurance contract 90 days, written or verbal
, War or nuclear damage ✔Correct Answer--Never covered
Insurable interest ✔Correct Answer--Financial loss a person suffers when property is destroyed
contract ✔Correct Answer--Must be legal
Contract ✔Correct Answer--Both offer and acceptance
Contract ✔Correct Answer--competent parties - not intoxicated, minor or legally insane
contract ✔Correct Answer--consideration - trade of value
(act, promise, money)
representations ✔Correct Answer--Material facts on an app, insured believes to be true
concealment ✔Correct Answer--Leaving out info on purpose
warranties ✔Correct Answer--Written statements guaranteeing something to be true, breach of
warranty voids insurance contract
fraud ✔Correct Answer--Knowing misrepresentation, concealment of material fats
Fraud is a felony ✔Correct Answer--10,000
Up to 10 years prison
Combination of both
indemnity ✔Correct Answer--Makes insured financially whole, not allowing gain
-reimbursed without overpaying
-original financial standing
Adhesion ✔Correct Answer--Written by one party (insurer), insured must adhere to contract
without negotiation (courts will interpret ambiguity to favor insured)
ambiguity ✔Correct Answer--unclear
Aleatory contract ✔Correct Answer--Equal value not given by both parties, money exchange not =
Unilateral contract
NOT BILATERAL ✔Correct Answer--Enforceable by one party
-insurer has duty to perform
-contract enforceable by insured
-insured can sue
Conditional contract ✔Correct Answer--Certain rules required both parties
underrwiter ✔Correct Answer--Selects risks for the insured
adjuster ✔Correct Answer--claims, losses, negotiates claim settlements
actuary ✔Correct Answer--mathmetitcial who develops the rates for the insurer
