MICHIGAN LIFE AND HEALTH EXAM | QUESTIONS & ANSWERS (VERIFIED) | LATEST UPDATE | GRADED A+

Risk Correct Answer: The uncertainty or chance of a loss occurring. The two types are pure and speculative. Pure Risk Correct Answer: Refers to a situation that can only result in a loss or no change. There is no opportunity for financial gain. Speculative Risk Correct Answer: Involves the opportunity for either loss or gain. Hazards Correct Answer: Conditions or situations that increase the probability of an insured loss occurring. Hazards and classified as physical hazards, moral hazards, or morale hazards. Perils Correct Answer: The causes of loss insured against in an insurance policy. 2 Life Insurance Correct Answer: Insures against the financial loss caused by the premature death of the insured. Health Insurance Correct Answer: Insures against medical expenses Property Insurance Correct Answer: Insures against the loss of physical property or the loss of its income producing abilities Casualty Insurance Correct Answer: Insures against the loss and/or damage of property and resulting liabilities Loss Correct Answer: the reduction, decrease, or disappearance of value of the person or property insured in a policy, caused by a named peril. Avoidanc