Passitexams

The major function of insurance is to achieve a spread of risk. Explain what is meant by "spread of risk" - ANSWER-To share the losses of a few among the many An analysis of the definition of insurance reveals five important points. Identify these five important points - ANSWER-- Shifting one's financial responsibility for loss to another party - Payment made only in event of certain risk or peril - Payment restricted to the amount required to indemnify the insured - Insurance covers l...

Probably the best way to define risk is to say, "Risk is the chance of financial loss as a result of loss or damage to the object of insurance or some other happening." - ANSWER-True. Pure Risk: Provides only the potential for financial loss with no chance of gain or profit. Insurance is provided for pure risk only. - ANSWER-True. Risk Retention or Self-insurance may be a practical risk management technique when the chance of financial loss amounts to just a few hundred dollars. - ANSWER...

List the 5 functions of insurance: - ANSWER-1) Spread of risk 2) Basis of credit system 3) Eliminate worry and develop entrepreneurship 4) Loss reduction and prevention (road safety, alarms, etc.) 5) Employment opportunity Definition of insurance (3 parts) - ANSWER-1) insurance provides a means of shifting ones financial responsibility from a loss to another party ii) payment will be made only in the event of the happening of a certain risk or peril iii) the amount of the payment is res...

List the 5 functions of insurance: - ANSWER-1) Spread of risk 2) Basis of credit system 3) Eliminate worry and develop entrepreneurship 4) Loss reduction and prevention (road safety, alarms, etc.) 5) Employment opportunity Definition of insurance (3 parts) - ANSWER-1) insurance provides a means of shifting ones financial responsibility from a loss to another party ii) payment will be made only in the event of the happening of a certain risk or peril iii) the amount of the payment is res...

Fundamentals of Insurance - Chapter 1- 2 Practice Questions & Answers 100% Correct!!Three Main Categories Of Risk - ANSWER-1) Personal Risk 2)Property Risk 3)Liability Risk What is "Spread of Risk"? - ANSWER-Insurance provides a mechanism in which the losses of few are shared among many Property and Casualty Insurance includes...(3 types of insurance) - ANSWER-1) Automobile Insurance 2) Property Insurance 3) Liability Insurance What are the 4 common options for dealing with risk? ...

Fundamentals Of Insurance (BC) Exam Questions & Answers (GRADED A+) Insurance plays an important role in managing financial risk. The main purpose of Insurance is to: A. Enable the consumer to obtain loan or mortgage. B. Provide employment and investment capital. C. Allow spread of risk. D. Reduce losses through loss prevention and loss reduction. -ANSWER-C. Allow spread of risk. When the insurer terminates an insurance policy, ALL of the following conditions apply, EXCEPT one. Pic...

Main purpose of Insurance - ANSWER-Allow the spread of risk Definition of Insurance - ANSWER--Payment's made only when a certain peril has damaged the insured object -Payment's limited to actual amount of loss, no more and no less -There's no payment for losses that are deliberately caused by an insured. Five important points to the definition of insurance: - ANSWER--Spread of Risk -Basis of Credit System -Eliminates Worry/Encourages Entrepreneurship -Loss Prevention and Loss Reduc...

The major function of insurance is: a. To reduce the cost of the losses b. To share the losses of the few among the many c. The safeguard the interest of mortgages d. To serve as a basis of existing credit system - ANSWER-b. To share the losses of the few among the many A peril if best defined as: a. The chance of a loss b. The occurrence of a loss c. The cause of a loss d. The result of a loss - ANSWER-c. The cause of a loss Indemnify means: a. Returning the premium of the ...

1) A capacity plate shows the: -ANSWER Maximum horsepower and weight allowed 2) What is the minimum height of the state registration numbers that are displayed on a boat? -ANSWER 3" 3) If a boat transfers ownership, is destroyed, lost, stolen or recovered, the owner must notify the agency which issued the certificate within this many days: -ANSWER 15 4) On a federally documented boat, it must have this number permanently affixed in block type, Arabic numerals not lees than 3" in heigh...

How should a boat's registration number and validation decal be displayed? - ANSWERon both sides of the bow What are the most important factors in choosing a PFD? - ANSWERweight and chest size Information on the capacity plate - ANSWERnumber of people, max weight, sometimes max horsepower Best way to find out about local hazards - ANSWERnautical chart Minimum age to operate a PWC - ANSWER16 years old Type of PFD that turns most people face up - ANSWERoff-shore PFD (type 1) Who...