Property and Casualty insurance Exam |
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Terms in this set (220)
Insurance The transfer of risk through a legal contract
Property Covers real property and personal property
against damage or loss resulting from covered
causes of loss called perils
casualty covers non-property losses (3rd Party)
Personal lines Insurance for families and individuals
Commercial Lines Insurance for Business
Risk Uncertainty of financial loss
Pure Risk Chance of loss only (insurance only covers)
Speculative Risk Chance of loss or gain
law of large numbers as the number of homogenous loss exposures
increases, the more accurate claims can be
predicted from the group
, Perils causes a loss
Named Peril lists the perils that are covered
open peril cover all perils except those specifically excluded
by the policy
hazard Are not causes of loss but are things that increase
the chance of a peril happening.
Physical Hazard something you can physically look at
Moral Hazard dishonest tendencies
morale hazard attitude of carelessness
Direct Loss immediate physical damage to property
indirect loss loss that happens after the direct loss but due to
the loss of use of the property. Also called
consequential
proximate cause the first cause in an unbroken chain of events
Elements of a legal contract Competent parties, Agreement, Legal Purpose,
consideration
Binder temporary contract of insurance. Pending issue of
the policy, good for 30 days
DICEE 5 major parts to an insurance policy
Questions with 100% Correct Answers | Verified |
Latest Update 2026
Save
Terms in this set (220)
Insurance The transfer of risk through a legal contract
Property Covers real property and personal property
against damage or loss resulting from covered
causes of loss called perils
casualty covers non-property losses (3rd Party)
Personal lines Insurance for families and individuals
Commercial Lines Insurance for Business
Risk Uncertainty of financial loss
Pure Risk Chance of loss only (insurance only covers)
Speculative Risk Chance of loss or gain
law of large numbers as the number of homogenous loss exposures
increases, the more accurate claims can be
predicted from the group
, Perils causes a loss
Named Peril lists the perils that are covered
open peril cover all perils except those specifically excluded
by the policy
hazard Are not causes of loss but are things that increase
the chance of a peril happening.
Physical Hazard something you can physically look at
Moral Hazard dishonest tendencies
morale hazard attitude of carelessness
Direct Loss immediate physical damage to property
indirect loss loss that happens after the direct loss but due to
the loss of use of the property. Also called
consequential
proximate cause the first cause in an unbroken chain of events
Elements of a legal contract Competent parties, Agreement, Legal Purpose,
consideration
Binder temporary contract of insurance. Pending issue of
the policy, good for 30 days
DICEE 5 major parts to an insurance policy
