CA LIFE AND HEALTH EXAM 2024

CA LIFE AND HEALTH EXAM 2024 WITH 100% CORRECT ANSWERS What is insurance? - correct answer Insurance is the legal contract where two parties agree that if something will happen, a value will be exchanged. What's the difference between pure risk and speculative risk? - correct answer Pure risk is when you'll lose it all or there will be no change. Speculative risk you can either win or lose. What is peril? - correct answer peril is the causes of loss insured against in an insurance policy What is hazard? - correct answer conditions that increase the probability of something bad happening What's the diff between moral, morale, and physical hazard? - correct answer physical is the hazard that results from physical body issues. Moral hazard is the evaluation of character (lying) morale hazard is an indifference which causes risk. What is the law of large numbers? - correct answer the larger the number of people more exposed to risk, the more predictable the risk outcome. What is an insurable event? - correct answer the more predictable an event, the more insurable it becomes