Utah Property and Casualty insurance Exam Qestions & Answers 100% Solved

Insurance - Answer The transfer of risk through a legal contract Property - Answer Covers real property and personal property against damage or loss resulting from covered causes of loss called perils casualty - Answer covers non-property losses (3rd Party) Personal lines - Answer Insurance for families and individuals Commercial Lines - Answer Insurance for Business Risk - Answer Uncertainty of financial loss Pure Risk - Answer Chance of loss only (insurance only covers) Speculative Risk - Answer Chance of loss or gain law of large numbers - Answer as the number of homogenous loss exposures increases, the more accurate claims can be predicted from the group Perils - Answer causes a loss Named Peril - Answer lists the perils that are covered open peril - Answer cover all perils except those specifically excluded by the policy hazard - Answer Are not causes of loss but are things that increase the chance of a peril happening. Physical Hazard - Answer something you can physically look at Moral Hazard - Answer dishonest tendencies morale hazard - Answer attitude of carelessness Direct Loss - Answer immediate physical damage to property indirect loss - Answer loss that happens after the direct loss but due to the loss of use of the property. Also called consequential proximate cause - Answer the first cause in an unbroken chain of events Elements of a legal contract - Answer Competent parties, Agreement, Legal Purpose, consideration Binder - Answer temporary contract of insurance. Pending issue of the policy, good for 30 days