Property and Casualty
Insurance Exam/65 Questions
with Detailed Answers/100%
Accurate
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
Insurance Exam/65 Questions
with Detailed Answers/100%
Accurate
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
