Property & Casualty Exam Study Guide |
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1 Representation 2 Actual Cash Value Formula
3 Misrepresentation: Fraud 4 Moral Hazard
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Terms in this set (65)
, Actual Cash Value Formula 1. Divide the big year by the small year
2. Take the result and multiply it by current cost
3. Take the result and subtract it from today's cost
Peril Causes a loss (why we file a claim)
Law of Large Numbers Mo' info, mo' accuracy
Hazard Increases chance of loss
Moral Hazard Ethical fault (think, it's against good morals to lie)
Morale Hazard Recklessness (think, a reckless squad makes for
bad morale in the ranks)
Aletory Unequal exchange of $ in insurance; usually in the
buyer's favor (they pay small fee for big protection,
usually as a big pay out)
Mutual Companies People who invest in insurance, dividends go to the
consumers (think mutual benefit)
Stock Company People who invest in insurance, dividends go to
them (think stocks as selfish)
Elements of a legal contract 1. Acceptance (Offer 'n' Acceptance= Application,
issuance, and agreement)
2. Consideration (equal value both ways)
3. Competent Party (Sober)
4. Legal Purpose
Warranty Fact
Questions with 100% Correct Answers | Verified |
Latest Update 2026
Save
Practice questions for this set
Learn 1 /7 Study using Learn
May or may not be true
Choose an answer
1 Representation 2 Actual Cash Value Formula
3 Misrepresentation: Fraud 4 Moral Hazard
Don't know?
Terms in this set (65)
, Actual Cash Value Formula 1. Divide the big year by the small year
2. Take the result and multiply it by current cost
3. Take the result and subtract it from today's cost
Peril Causes a loss (why we file a claim)
Law of Large Numbers Mo' info, mo' accuracy
Hazard Increases chance of loss
Moral Hazard Ethical fault (think, it's against good morals to lie)
Morale Hazard Recklessness (think, a reckless squad makes for
bad morale in the ranks)
Aletory Unequal exchange of $ in insurance; usually in the
buyer's favor (they pay small fee for big protection,
usually as a big pay out)
Mutual Companies People who invest in insurance, dividends go to the
consumers (think mutual benefit)
Stock Company People who invest in insurance, dividends go to
them (think stocks as selfish)
Elements of a legal contract 1. Acceptance (Offer 'n' Acceptance= Application,
issuance, and agreement)
2. Consideration (equal value both ways)
3. Competent Party (Sober)
4. Legal Purpose
Warranty Fact
