Pennsylvania 2019 Insurance license Exam updated to pass

Pennsylvania 2019 Insurance license ExamInsurance - correct answer Is a contract in which one party (the insurance Company) agrees to indemnify (make whole) the insures party against loss, damage or liability arising from an unknown event. Risk - correct answer Is the uncertainty or chance of a loss occurring. 2 types of risk - correct answer Pure and Speculative Pure Risk - correct answer refers to situations that can only result in a loss or no change. There is no opportunity for gain. Only risk covered by insurance companies speculative risk - correct answer Involves the opportunity for either loss or gain. An example of speculative risk is gambling. These types of risks are not insurable. Hazards - correct answer are conditions or situations that increase the probability of an insured loss occurring. Classified as physical, moral, or morale. Physical Hazard - correct answer Are individual characteristics that increase the chance last of the cause of loss Moral Hazard - correct answer Are tendencies towards increased risk. Involve evaluating the character and reputation of the proposed insured. Morale Hazard - correct answer Arise from a state of mind that causes indifference to loss, such as carelessness. Peril - correct answer Are the causes of loss insured against in an insurance policy