Property and Casualty Insurance Test Questions with correct answers

What is a peril? CORRECT ANSWER A Peril is a cause of loss What is a hazard? CORRECT ANSWER Something that increases the chance of a loss What is the difference between a Moral hazard and a Morale Hazard? CORRECT ANSWER Moral Hazard - dishonesty, against the law Morale Hazard - carelessness What is the method of handling risk that involves a deductible? CORRECT ANSWER Retention (loss or portion of loss) If a fire causes damage to a building, what is the fire considered? CORRECT ANSWER A Peril What are the elements of an insurable risk? CORRECT ANSWER CANHAM Calculable, Affordable, Non-Catastrophic, Homogeneous, Accidental, Measurable If an insurance company is housed in Tennessee, what type of insurer are they considered? CORRECT ANSWER D