Ohio Personal Lines (Insurance Exam) COMPLETE
QUESTIONS AND CORRECT ANSWERS \VERIFIED
100% ALREADY GRADED A+
Hazard
Increases the possibility of a loss
Indemnity
Does not allow the insured to profit from a loss; instead, it restores the
insured to the same financial or economic condition the existed prior to
loss
Adhesion
One party (the insurer) prepares the contract and presents it to the second
party (the insured), who must accept it on a "take-it-or-leave-it" basis
Types Of Insurers
Stock Insurers, Mutual Insurers, Reciprocal Insurers, and Self-Insurer
Reduction
Minimizing the chance of a loss without eliminating the risk altogether
,Retention
Assuming responsibility for a loss
Conditional
A contract that requires that both parties perform certain duties
Acutuary
Determines the probability of loss and sets premium rates
Physical
A hazard that occurs when a physical condition increases the
probability of loss; use, condition, or occupancy of property
Moral
A hazard that occurs when dishonest tendencies increase the
probability of a loss; certain characteristics and behaviors of people
,Morale
A hazard that occurs when a persons attitude increases the probability of a
loss
Speculative Risk
Situations where there is a chance or possibility for loss, no loss or gain
Pure Risk
Situations where there is no chance for gain, only loss. The only risk that
can be insured
Misreprensentation
False statement contained in the insured's application and does not
usually void coverage or the policy
Fraud
An intentional deception of the truth in order to induce another party with
something of value or to surrender a legal right
Concealment
The willful holding back or secretion of material facts pertinent to the
issuance of insurance or claim
, Reinsurance
A contract between the insuring company and the reinsurer, and does
not involve the insured
Underwriter
Responsible for the selection of risks and rating that determines actual
policy premium
Underwriting
The process of selecting, classifying, and rating a risk for the purpose of
insurance coverage
Waiver
Voluntary surrender of a known right, claim or privilege
Estoppel
Prevents the denial of a fact, if the fact was admitted to be true previously
Agreement
One party must make and communicate an offer to the other party and
the second party must accept that offer
QUESTIONS AND CORRECT ANSWERS \VERIFIED
100% ALREADY GRADED A+
Hazard
Increases the possibility of a loss
Indemnity
Does not allow the insured to profit from a loss; instead, it restores the
insured to the same financial or economic condition the existed prior to
loss
Adhesion
One party (the insurer) prepares the contract and presents it to the second
party (the insured), who must accept it on a "take-it-or-leave-it" basis
Types Of Insurers
Stock Insurers, Mutual Insurers, Reciprocal Insurers, and Self-Insurer
Reduction
Minimizing the chance of a loss without eliminating the risk altogether
,Retention
Assuming responsibility for a loss
Conditional
A contract that requires that both parties perform certain duties
Acutuary
Determines the probability of loss and sets premium rates
Physical
A hazard that occurs when a physical condition increases the
probability of loss; use, condition, or occupancy of property
Moral
A hazard that occurs when dishonest tendencies increase the
probability of a loss; certain characteristics and behaviors of people
,Morale
A hazard that occurs when a persons attitude increases the probability of a
loss
Speculative Risk
Situations where there is a chance or possibility for loss, no loss or gain
Pure Risk
Situations where there is no chance for gain, only loss. The only risk that
can be insured
Misreprensentation
False statement contained in the insured's application and does not
usually void coverage or the policy
Fraud
An intentional deception of the truth in order to induce another party with
something of value or to surrender a legal right
Concealment
The willful holding back or secretion of material facts pertinent to the
issuance of insurance or claim
, Reinsurance
A contract between the insuring company and the reinsurer, and does
not involve the insured
Underwriter
Responsible for the selection of risks and rating that determines actual
policy premium
Underwriting
The process of selecting, classifying, and rating a risk for the purpose of
insurance coverage
Waiver
Voluntary surrender of a known right, claim or privilege
Estoppel
Prevents the denial of a fact, if the fact was admitted to be true previously
Agreement
One party must make and communicate an offer to the other party and
the second party must accept that offer
