Property and casualty insurance key terms Exam
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replacement cost
Choose an answer
losses may be reimbursed on a replacement cost basis, without deduction for
1
depreciation
2 A cause of loss Ex fire, collision
a fact that would cause an insurer to decline a risk, charge a different premium or
3
change the provisions of a policy that was issued
insurance policies are contracts of indemnity because they restore the insured to
4
approximately the same financial condition he or she was in before a loss
, Don't know?
Terms in this set (49)
A cause of loss Ex fire, collision Peril
Something that increases the chance Hazard
of loss Ex worn brakes on a car
Principle that helps insurers predict law of large numbers
the number of losses that will occur
and allows them to provide large
amounts of insurance for little money
A risk must meet certain criteria to insurable risk
be suitable subject for insurance
insurance policies are contracts of indemnity
indemnity because they restore the
insured to approximately the same
financial condition he or she was in
before a loss
contract that is contingent on Aleatory contract
uncertain event
a contract in which only one party contract of adhesion
draws up the terms and the other
party simply consents to them
| Questions with 100% Correct Answers | Verified |
Latest Update 2026
Save
Practice questions for this set
Learn 1 /7 Study using Learn
replacement cost
Choose an answer
losses may be reimbursed on a replacement cost basis, without deduction for
1
depreciation
2 A cause of loss Ex fire, collision
a fact that would cause an insurer to decline a risk, charge a different premium or
3
change the provisions of a policy that was issued
insurance policies are contracts of indemnity because they restore the insured to
4
approximately the same financial condition he or she was in before a loss
, Don't know?
Terms in this set (49)
A cause of loss Ex fire, collision Peril
Something that increases the chance Hazard
of loss Ex worn brakes on a car
Principle that helps insurers predict law of large numbers
the number of losses that will occur
and allows them to provide large
amounts of insurance for little money
A risk must meet certain criteria to insurable risk
be suitable subject for insurance
insurance policies are contracts of indemnity
indemnity because they restore the
insured to approximately the same
financial condition he or she was in
before a loss
contract that is contingent on Aleatory contract
uncertain event
a contract in which only one party contract of adhesion
draws up the terms and the other
party simply consents to them
