PROPERTY AND CASUALTY INSURANCE
PRINCIPLES AND CONCEPTS Exam | Questions
with 100% Correct Answers | Verified | Latest
Update 2026
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Practice questions for this set
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Losses that result from lost profits and expenses due to the interruption of a
customer or supplier's business operations.
Choose an answer
1 Property Insurance 2 Contingent loss
3 Statutory Funds 4 Risk Appetite
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Terms in this set (93)
, Property Insurance Contracts designed to transfer risk of unexpected
financial loss from the property owner to the
insurance company.
Liability Contracts Also known as casualty policies, they focus on
reimbursement to third parties for negligent acts
leading to injury or damage.
Insurable Interest An individual has a financial stake in something and
would experience monetary loss if that something
was lost, damaged, or destroyed.
Underwriting The process of assessing risks to determine if they
are acceptable and how much premium will be
charged.
Risk Appetite Describes what risks an insurer finds acceptable
and is willing to underwrite.
Sources of Information for Include statements made by the applicant,
Underwriting underwriting maps, and third-party verification.
Standard Rates Normal, average rates assessed on an average risk
for coverage.
Loss Ratio Compares a company's incurred losses to the
amount of earned insurance premiums, expressed
as a percentage.
Expense Ratio Shows what percentage of premiums collected has
been used to pay expenses associated with
insurance policies.
PRINCIPLES AND CONCEPTS Exam | Questions
with 100% Correct Answers | Verified | Latest
Update 2026
Save
Practice questions for this set
Learn 1 /7 Study using Learn
Losses that result from lost profits and expenses due to the interruption of a
customer or supplier's business operations.
Choose an answer
1 Property Insurance 2 Contingent loss
3 Statutory Funds 4 Risk Appetite
Don't know?
Terms in this set (93)
, Property Insurance Contracts designed to transfer risk of unexpected
financial loss from the property owner to the
insurance company.
Liability Contracts Also known as casualty policies, they focus on
reimbursement to third parties for negligent acts
leading to injury or damage.
Insurable Interest An individual has a financial stake in something and
would experience monetary loss if that something
was lost, damaged, or destroyed.
Underwriting The process of assessing risks to determine if they
are acceptable and how much premium will be
charged.
Risk Appetite Describes what risks an insurer finds acceptable
and is willing to underwrite.
Sources of Information for Include statements made by the applicant,
Underwriting underwriting maps, and third-party verification.
Standard Rates Normal, average rates assessed on an average risk
for coverage.
Loss Ratio Compares a company's incurred losses to the
amount of earned insurance premiums, expressed
as a percentage.
Expense Ratio Shows what percentage of premiums collected has
been used to pay expenses associated with
insurance policies.
