Property and Casualty Insurance (Louisiana)
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Terms in this set (200)
A situation in which a person can Pure Risk
experience only a loss and no gain
presents what type of risk?
What is consideration in an insurance Consideration is something of value that each party
contract? gives to the other. Consideration on the part of the
insurer is binding.
A tornado that destroys a property Peril
would be an example of what?
What type of insurer is formed under Foreign
the laws of another state?
What are the 5 characteristics of an 1. due to chance
ideally insurable risk? 2. definite and measurable
3. statistically predictable
4. not catastrophic
5. randomly selected
Wagering on a sporting event is Speculative
known as what type of risk?
, Insurance contracts are aleatory in Unequal values are exchanged between the parties
nature. What does that mean? to a contract.
What does the term unilateral A unilateral contract is a one-sided contract. This
contract mean? means only one party makes an enforceable
promise.
Insurers are classified according to Domestic, Foreign, and Alien
their domicile. What are the 3 types
of insurers?
What do individuals use to transfer Insurance
their risk of loss to a larger group?
What are the 4 elements of an Agreement (Offer and Acceptance)
insurance contract? Consideration
Competent Parties
Legal Purpose
If an insurer holds a certificate of Authorized or Admitted
authority, it is known as what type of
insurer?
Conditions that increase the chance Hazards
of a loss are known as what?
What are the 3 types of hazards? Physical, Moral, and Morale
What does the term reasonable Certain expectations for coverage that a
expectations mean in insurance? reasonable person would have based on sources
other than just the policy language.
Exam | Questions with 100% Correct Answers |
Verified | Latest Update 2026
Save
Terms in this set (200)
A situation in which a person can Pure Risk
experience only a loss and no gain
presents what type of risk?
What is consideration in an insurance Consideration is something of value that each party
contract? gives to the other. Consideration on the part of the
insurer is binding.
A tornado that destroys a property Peril
would be an example of what?
What type of insurer is formed under Foreign
the laws of another state?
What are the 5 characteristics of an 1. due to chance
ideally insurable risk? 2. definite and measurable
3. statistically predictable
4. not catastrophic
5. randomly selected
Wagering on a sporting event is Speculative
known as what type of risk?
, Insurance contracts are aleatory in Unequal values are exchanged between the parties
nature. What does that mean? to a contract.
What does the term unilateral A unilateral contract is a one-sided contract. This
contract mean? means only one party makes an enforceable
promise.
Insurers are classified according to Domestic, Foreign, and Alien
their domicile. What are the 3 types
of insurers?
What do individuals use to transfer Insurance
their risk of loss to a larger group?
What are the 4 elements of an Agreement (Offer and Acceptance)
insurance contract? Consideration
Competent Parties
Legal Purpose
If an insurer holds a certificate of Authorized or Admitted
authority, it is known as what type of
insurer?
Conditions that increase the chance Hazards
of a loss are known as what?
What are the 3 types of hazards? Physical, Moral, and Morale
What does the term reasonable Certain expectations for coverage that a
expectations mean in insurance? reasonable person would have based on sources
other than just the policy language.
