Missouri Insurance
Licensing 2026 | Exam
Prep, Practice Questions &
Study Guide
|Graded A+ | Guaranteed
success|
Updated 2026 Questions and Answers
100% Verified Exam Prep and Comprehensive
Rationales
Included
, Moral Hazard A hazard caused by the dishonesty of the insured. (criminAL, financiAL,
intentionAL)
Ex. - asron, intentional damage, fraud
Morale Hazard A hazard caused by the CARELESSNESS of the insured or the failure to do
something (carelessness, absentmindedness, bad attitude, or indifference)
Ex. - Leaving keys in your car at the grocery store, smoking in bed, texting and
driving.
Physical Hazard A hazard caused by something you can see/tangible/touch, a material, structural,
operational, a feature that may increase injury.
Ex. - Toys on the staircase, a broken step, a location (beach house).
Accident A sudden, unexpected and unforeseen event. Results in loss or damage.
(Happens in a hurry, specific type of occurence)
Occurence A continuous and repeated exposure to the same conditions and can include an
accident. (Happens over time)
All accidents are ____________. Occurences.
Peril Cause of loss, the reason the loss occurred. These are the losses that the
insurance policy will cover.
Ex. - fire, lightning, theft.
Risk The chance, uncertainty, or possibility of a loss. Insurance covers your risk!
Types of risk. Speculative and Pure
Speculative risk You can win or lose! Speculative risks are NOT insurable.
Ex. - Gambling
Pure risk The chance of loss without the chance of gain. No chance to profit. You can only
LOSE!
Pure risks are insurable - insurance deals with PURE RISKS ONLY.
"Loss or no loss"
Ex. - Auto insurance is a pure risk.
Licensing 2026 | Exam
Prep, Practice Questions &
Study Guide
|Graded A+ | Guaranteed
success|
Updated 2026 Questions and Answers
100% Verified Exam Prep and Comprehensive
Rationales
Included
, Moral Hazard A hazard caused by the dishonesty of the insured. (criminAL, financiAL,
intentionAL)
Ex. - asron, intentional damage, fraud
Morale Hazard A hazard caused by the CARELESSNESS of the insured or the failure to do
something (carelessness, absentmindedness, bad attitude, or indifference)
Ex. - Leaving keys in your car at the grocery store, smoking in bed, texting and
driving.
Physical Hazard A hazard caused by something you can see/tangible/touch, a material, structural,
operational, a feature that may increase injury.
Ex. - Toys on the staircase, a broken step, a location (beach house).
Accident A sudden, unexpected and unforeseen event. Results in loss or damage.
(Happens in a hurry, specific type of occurence)
Occurence A continuous and repeated exposure to the same conditions and can include an
accident. (Happens over time)
All accidents are ____________. Occurences.
Peril Cause of loss, the reason the loss occurred. These are the losses that the
insurance policy will cover.
Ex. - fire, lightning, theft.
Risk The chance, uncertainty, or possibility of a loss. Insurance covers your risk!
Types of risk. Speculative and Pure
Speculative risk You can win or lose! Speculative risks are NOT insurable.
Ex. - Gambling
Pure risk The chance of loss without the chance of gain. No chance to profit. You can only
LOSE!
Pure risks are insurable - insurance deals with PURE RISKS ONLY.
"Loss or no loss"
Ex. - Auto insurance is a pure risk.
