Texas Property & Casualty License With Correct Answers

Property vs Casualty: What is considered property? - Correct Answer Structure & Personal Property Property vs Casualty: What is considered casualty? - Correct Answer Non-property losses. Legal liability to others. 3rd Party Risk - Correct Answer uncertainty of financial loss Pure Risk - Correct Answer Chance of Loss Speculative Risk - Correct Answer Chance of Loss or Gain (Gamble) Insurance (covers which type of risk?) - Correct Answer Pure Risk Only How does the law of large numbers apply in insurance? - Correct Answer Actuaries use the law of large numbers to estimate claims What is the law of large numbers? - Correct Answer as the number of a similar loss exposure increases, the more accurate claims can be predicted from the group. What is a peril? - Correct Answer cause of loss What is a hazard? - Correct Answer things that increase the chance of a peril happening Three types of hazards - Correct Answer Physical: visible characteristic (dead tree) Moral: Dishonest tendencies Morale: Attitude of carelessness Proximate Cause - Correct Answer First cause in an unbroken chain of events Elements of a legal contract (CALC) - Correct Answer C - Competent parties (18/Right frame of mind) A - Agreement (Both parties agree) L - Legal Purpose (The risk is LEGAL) C - Consideration (It has to be fair) What is representation? - Correct Answer Information believed to be true. What is misrepresentation? - Correct Answer Information that is not true. False information.