OK Property and Casualty - Motor Vehicle Included (Adjuster)-Section 1 (Introduction to Insurance,

Risk - ANSWER-The uncertainty or possibility of financial loss. (2 types: Speculative risk and Pure risk) Speculative Risk - ANSWER-Chance of financial loss with the possibility of gain or loss. This type of risk is not insurable. Example is gambling. Pure Risk - ANSWER-Chance of financial loss with no possibility of gain. The only potential outcome is loss. Loss - ANSWER-Unintended unforeseen damage or injury measurable in financial terms. Peril - ANSWER-The actual cause of a loss. The reason the loss occurred. (Fire, lightening, wind, etc.) Hazard - ANSWER-Anything that increases the likelihood (frequency) of a loss occurring or the severity of a loss. (3 types: Physical, Moral, and Morale) Physical hazard - ANSWER-Arises from material or structural features. Examples: icy road, oily rag Mo