Georgia Property and Casualty questions with correct answers

Insurance Terms and Related Concepts. What is insurance? CORRECT ANSWER transfers the risk of loss from an individual or business entity to an insurance company, which in turn spreads the costs of unexpected losses to many individuals. Insurance Terms and Related Concepts. What is risk? CORRECT ANSWER the uncertainty or chance of a loss occurring. Insurance Terms and Related Concepts. What are the 3 types of hazards? CORRECT ANSWER Physical, moral and morale. Insurance Terms and Related Concepts. What does indemnify mean? CORRECT ANSWER To "restore" an insured to the same financial status as before the loss. Insurance Terms and Related Concepts. Define subrogation. CORRECT ANSWER the acquisition by an insurer of an insured's rights against any third party for indemnification of loss or other payment, to the extent that the insurer pays the loss. Insurance Terms and Related Concepts. What is the difference between an accident and an occurrence? CORRECT ANSWER Both result in injury to persons or damage to property that is neither intended nor expected; however, a