Property/Casualty Illinois for State Exam |
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Answers & Detailed Explanations | Latest
Update 2026 | 2027.
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Practice questions for this set
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NO LONGER GROUNDS FOR CANCELLATION
Choose an answer
after 5 years, personal
1 ISO (Insurance Services Office) 2
auto/property policy are....
Explain the difference between What is the difference between
3 4
vacancy and unoccupied pure and speculative risk?
Don't know?
Terms in this set (140)
,ISO (Insurance Services Office) ISO creates standardized property and casualty
insurance policies that are approved by states
and used as a standard policy for insurers.
-they can be modified to comply with state
regulations
-may be modified to a degree for insurance
companies to create their own policy form
define insurance Insurance transfers the risk of loss from an
individual or business entity to an insurance
company, which in turn spreads the costs of
unexpected losses to many individuals
define risk uncertainty concerning the occurrence of a loss
What are the 2 types of risk? Pure and Speculative
What is the difference between only pure risk is insurable since it can only result
pure and speculative risk? in a loss or no change
speculative risk is not insurable since it can result
in a loss or gain (like gambling)
, What are the 3 types of hazards? 1) Physical - hazards arising from the material,
structural, or operational features
2) Moral - refers to applicants that may lie on
their application
3) Morale - increase the hazard presented by a
risk arising from the insured's indifference to loss
because of the existence of insurance
(combustible material near a furnace)
peril causes of loss
hazards conditions/circumstances that increase the
probability of an insured loss occurring
there are 3 types
direct loss direct physical damage to buildings/personal
property
*this includes proximate cause: chain of events
resulting from a covered peril
indirect loss/consequential losses losses considered a result of direct loss; this
usually results from when repairs begin so it
could be additional living expenses for
homeowners or loss of profits for businesses
named peril lists of specific perils; no coverage for unlisted
perils
open perils (all risk) insures against any risk of loss that is not
excluded
Certified Questions with Verified Correct
Answers & Detailed Explanations | Latest
Update 2026 | 2027.
Save
Practice questions for this set
Learn 1 /7 Study with Learn
NO LONGER GROUNDS FOR CANCELLATION
Choose an answer
after 5 years, personal
1 ISO (Insurance Services Office) 2
auto/property policy are....
Explain the difference between What is the difference between
3 4
vacancy and unoccupied pure and speculative risk?
Don't know?
Terms in this set (140)
,ISO (Insurance Services Office) ISO creates standardized property and casualty
insurance policies that are approved by states
and used as a standard policy for insurers.
-they can be modified to comply with state
regulations
-may be modified to a degree for insurance
companies to create their own policy form
define insurance Insurance transfers the risk of loss from an
individual or business entity to an insurance
company, which in turn spreads the costs of
unexpected losses to many individuals
define risk uncertainty concerning the occurrence of a loss
What are the 2 types of risk? Pure and Speculative
What is the difference between only pure risk is insurable since it can only result
pure and speculative risk? in a loss or no change
speculative risk is not insurable since it can result
in a loss or gain (like gambling)
, What are the 3 types of hazards? 1) Physical - hazards arising from the material,
structural, or operational features
2) Moral - refers to applicants that may lie on
their application
3) Morale - increase the hazard presented by a
risk arising from the insured's indifference to loss
because of the existence of insurance
(combustible material near a furnace)
peril causes of loss
hazards conditions/circumstances that increase the
probability of an insured loss occurring
there are 3 types
direct loss direct physical damage to buildings/personal
property
*this includes proximate cause: chain of events
resulting from a covered peril
indirect loss/consequential losses losses considered a result of direct loss; this
usually results from when repairs begin so it
could be additional living expenses for
homeowners or loss of profits for businesses
named peril lists of specific perils; no coverage for unlisted
perils
open perils (all risk) insures against any risk of loss that is not
excluded
