Property and Casualty Exam – Texas questions with correct answers

____ is uncertainty of loss CORRECT ANSWER risk ____ is a transfer of risk from the insured to the insurer CORRECT ANSWER insurance ____ risk means there is no chance of gain. It is insurable. CORRECT ANSWER pure ____ risk means there is a chance of a loss or a gain. It is not insurable. CORRECT ANSWER speculative a ____ is something that increases the risk. CORRECT ANSWER hazard the principle of _____ governs property and casualty policies. It states that the purpose of the policy is to restore the insured financially to where they were prior to the loss CORRECT ANSWER indemnity _____ _____ must exist on a casualty policy at time of loss in order for the policy to provide coverage. CORRECT ANSWER insurable interest the law of _____ _____ is used to predict the likelihood of loss CORRECT ANSWER large numbers ____ ____ ____ is replacement cost minus depreciation. CORRECT ANSWER actual cash value