WebCE Property & Casualty Prep Exam
With Correct Answers
Risk - Correct Answer- Chance of loss
5 Risk or Loss Factors - Correct Answer- 1. Risk 2. Loss 3. Exposure 4. Peril 5. Hazard
Insurance allows: - Correct Answer- Individual or group to transfer over to insurance
company the risk of financial loss from a destructive event
Fundamental purpose of insurance is: - Correct Answer- To indemnify policyholder
against covered losses or restore policyholder back to same financial position they were
in before
Insurance companies may used term risks to refer to insured: - Correct Answer- 1.
Person 2. Property 3. Activity
Loss - Correct Answer- Unplanned or unwelcome reduction in economic value
What is Direct and Indirect loss - Correct Answer- 1. Direct loss - immediate result of
and event caused by a covered peril 2. Indirect loss - remote result of an event caused
by covered peril
Exposure - Correct Answer- State of being subject to a possible loss
Insurer measures exposure by - Correct Answer- Units to the person, property or event
(more exposure units, the greater the premium)
Exposure is also referred to as: - Correct Answer- Total risk an insurer faces with
insured
Peril - Correct Answer- The destructive event that insurance guards against
6 types of peril - Correct Answer- 1. Fire 2. Explosion 3. Windstorm 4. Flood 5.Theft 6.
Collision
Insurance policy provides - Correct Answer- Financial protection against losses caused
by specified peril
Havard - Correct Answer- Is condition that increases the likely occurrence of a peril or
severity of a loss
Name the 3 types of hazards - Correct Answer- 1. Moral 2. Morale 3. Physical
With Correct Answers
Risk - Correct Answer- Chance of loss
5 Risk or Loss Factors - Correct Answer- 1. Risk 2. Loss 3. Exposure 4. Peril 5. Hazard
Insurance allows: - Correct Answer- Individual or group to transfer over to insurance
company the risk of financial loss from a destructive event
Fundamental purpose of insurance is: - Correct Answer- To indemnify policyholder
against covered losses or restore policyholder back to same financial position they were
in before
Insurance companies may used term risks to refer to insured: - Correct Answer- 1.
Person 2. Property 3. Activity
Loss - Correct Answer- Unplanned or unwelcome reduction in economic value
What is Direct and Indirect loss - Correct Answer- 1. Direct loss - immediate result of
and event caused by a covered peril 2. Indirect loss - remote result of an event caused
by covered peril
Exposure - Correct Answer- State of being subject to a possible loss
Insurer measures exposure by - Correct Answer- Units to the person, property or event
(more exposure units, the greater the premium)
Exposure is also referred to as: - Correct Answer- Total risk an insurer faces with
insured
Peril - Correct Answer- The destructive event that insurance guards against
6 types of peril - Correct Answer- 1. Fire 2. Explosion 3. Windstorm 4. Flood 5.Theft 6.
Collision
Insurance policy provides - Correct Answer- Financial protection against losses caused
by specified peril
Havard - Correct Answer- Is condition that increases the likely occurrence of a peril or
severity of a loss
Name the 3 types of hazards - Correct Answer- 1. Moral 2. Morale 3. Physical
