215 Insurance License Exam 2024 with 100% complete solutions

risk pooling correct answersspreading risk over a large group of people law of large numbers correct answerslarger the group, the more certain the predictions speculative risk correct answersnot insurable - involves both chance of loss or gain pure risk correct answersinsurable - involves chance of loss, never gain or profit peril correct answersevent causing loss Ex: fire, death, accident, windstorm, disease hazard correct answersany factor that gives rise to peril or increase likelihood of a loss from a peril physical hazard correct answersslippery floor, blindness, deafness, past medical history moral hazard correct answersintentional act, tendencies to take risks; Ex: alcoholism, drugs, dishonesty morale hazard correct answerscarelessness, indifference Ex: driving recklessly with no fear of injury risk avoidance correct answersavoiding the risk, don't do anything Ex: choosing not to drive, fly or invest (not practical) risk reduction correct answersreducing the risk of a loss