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Fundamentals of Insurance Ch.1 Intro to General Insurance Questions and
Answers with Solutions UPDATED!!!
1. Insurance provides a means of shifting one's financial
responsibility for a loss to another party - ANSWER Insurance
covers cost of a loss for something that you would otherwise
not have the money to do so alone
2. Payment will be made only in the event of the happening of a
certain risk or peril - ANSWER you only get payed or receive
benefits of insurance when that item is damaged/exposed
3. The amount of the payment is restricted to the amount
required to indemnify the insured - ANSWER people receive
actual amount of loss, no more or no less, determine value as
existed immediately prior to loss
4. Insurance covers losses to which the object of insurance MAY
be exposed - ANSWER insurance pays for losses that are
accidental and future.
Fundamentals of Insurance Ch.1 Intro to General Insurance Questions and
Answers with Solutions UPDATED!!!
1. Insurance provides a means of shifting one's financial
responsibility for a loss to another party - ANSWER Insurance
covers cost of a loss for something that you would otherwise
not have the money to do so alone
2. Payment will be made only in the event of the happening of a
certain risk or peril - ANSWER you only get payed or receive
benefits of insurance when that item is damaged/exposed
3. The amount of the payment is restricted to the amount
required to indemnify the insured - ANSWER people receive
actual amount of loss, no more or no less, determine value as
existed immediately prior to loss
4. Insurance covers losses to which the object of insurance MAY
be exposed - ANSWER insurance pays for losses that are
accidental and future.
