1
Property and Casualty Chapter 1 Questions
with Answers (100% Correct Answers)
A chance of loss is called ___? Answer: Risk
Gambling is an example of ____. Answer: Speculative risk
Insurance will only cover ____ risks. Answer: Pure
The transfer of risk from an individual or business to a professional risk taking
company is called ____. Answer: Insurance
Loss is defined as _____ hurt. Answer: Financial
Having your car stolen is an example of a ____ loss, whereas not having the use
of your stolen car would be referred to as an _____ or consequential loss.
Answer: Direct and Indirect
Insurance that covers your stuff is called ____ insurance. Answer: Property
Insurance that protects you when your stuff gets you in trouble with The Other
Guy is called ____ or _____ insurance. Answer: liability or casualty
Property insurance policies are ____ party contracts, whereas liability policies
are ____ party contracts. Answer: Two party contracts, Third party contracts
In insurance lingo, if you have a financial interest in a piece of property, you
are said to have an _____. Answer: Insurable interest
When an insurance company pays a policy owner on a claim, the company is
said to have _____ the insured. Answer: Indemnified
The stated maximum that an insurance company will pay on a claim is called
the _____. Answer: Limit of liability
Losses that are specifically NOT covered by an insurance policy are called
_____. Answer: Exclusions
Property and Casualty Chapter 1 Questions
with Answers (100% Correct Answers)
A chance of loss is called ___? Answer: Risk
Gambling is an example of ____. Answer: Speculative risk
Insurance will only cover ____ risks. Answer: Pure
The transfer of risk from an individual or business to a professional risk taking
company is called ____. Answer: Insurance
Loss is defined as _____ hurt. Answer: Financial
Having your car stolen is an example of a ____ loss, whereas not having the use
of your stolen car would be referred to as an _____ or consequential loss.
Answer: Direct and Indirect
Insurance that covers your stuff is called ____ insurance. Answer: Property
Insurance that protects you when your stuff gets you in trouble with The Other
Guy is called ____ or _____ insurance. Answer: liability or casualty
Property insurance policies are ____ party contracts, whereas liability policies
are ____ party contracts. Answer: Two party contracts, Third party contracts
In insurance lingo, if you have a financial interest in a piece of property, you
are said to have an _____. Answer: Insurable interest
When an insurance company pays a policy owner on a claim, the company is
said to have _____ the insured. Answer: Indemnified
The stated maximum that an insurance company will pay on a claim is called
the _____. Answer: Limit of liability
Losses that are specifically NOT covered by an insurance policy are called
_____. Answer: Exclusions
