Alabama- Property and Casualty Chapter 1 – 7 (With complete solution)

The term "Risk" means correct answers Uncertainty of loss Techniques for handling risk correct answers Avoid the Risk Retain the Risk Reduce the Risk Transfer the Risk The Law of Numbers correct answers The more examples used to develop a statistic, the more reliable the statistic will be. Pure Risk correct answers Involves only the possibility of a loss. Peril correct answers The cause of loss. Elements of a legally enforceable contract correct answers Legal offer by offeror Legal acceptance by offeree Consideration Genuine assent Competent parties Principal of Indemnity correct answers Being placed in the same financial position after a loss as before the loss. Endorsement correct answers Form which modifies coverage Purchasing a home without a pool is what type of method of loss control? correct answers Avoidance Insurance contracts are written with what type of limit? correct answers predetermined A insurable interest is correct answers determined as the time of loss. Stock Company correct answers A company that is formed as a corporation and owned by investors. Mutual Company correct answers Policyholders are owners of which of the following type of company. Residual Market correct answers Insurance offered by or subsidized by government entities. Express Authority correct answers Powers given to an agent in the agency contract.