ExamFX Oklahoma Property and Casualty Questions With Complete Solutions

Insurable Interest correct answer: Something that, if damaged, will cause the insured to incur financial loss Risk correct answer: Chance of loss occurring Pure Risk correct answer: Situations that can only result in loss or no change (Insurable) Speculative Risk correct answer: Involves the opportunity for either loss or gain (Not insurable) Peril correct answer: The cause of loss insured against by a policy Hazard correct answer: Conditions or situations that increase probability of an insured loss occurring Physical Hazard correct answer: Hazard that arises from material, structural or operational features of the riskl Moral Hazard correct answer: Applications that lie on an application for insurance or have made false claims Morale Hazard correct answer: An increase in risk arising from the insured's indifference to loss Indemnity (Reimbursement) correct answer: A provision in a policy that states that in the event of a loss, the beneficiary is permitted to collect only to the extent of the financial loss Subrogation correct answer: The insurer's legal right to seek damages from third parties after it has reimbursed the insured for the loss Accident correct answer: A sudden, unplanned and unexpected event resulting in injury or damage Occurrence correct answer: A broader definition of loss that includes those losses caused by continuous or repeated exposure to risks