Virginia Property and Casualty Insurance

Virginia Property and Casualty Insurance with questions and answers well explained with guaranteed A+ score. What is based on the principle of Risk Transfer - correct answersSpreading the results of a financial loss among many persons, so the cost to any one person is small What kind of risk has an outcome that is uncertain? - correct answersSpeculative Risk What is the reason for a claim? - correct answersA loss is the reason a claim against an insurance company. What is the measure of a loss? - correct answersExposure Units Name three types of hazards. - correct answers1. Physical Hazard 2. Moral Hazard 3. Morale Hazard What is a cause of a loss? - correct answersPerils are the causes of possible loss What is the common way to transfer risk? - correct answersThe most common method of risk transfer is when a homeowner purchases insurance on their home.. Define adverse selection. - correct answersInsuring risks more prone to losses than an average risk. What is the theory of probability that is the basis for insurance? - correct answersThe Law of Large Numbers Who manages a Mutual Company - correct answersA Boar of Trustees What is high risk coverage purchased from an unauthorized company? - correct answersSurplus Lines Insurers How are insurance companies defined? - correct answersWhere they are located, chartered, or incorporated. What protects policy holders from an insurer's insolvency? - correct answersProperty and Casualty Insurance Guaranty Association