Property/Casualty Illinois for State Exam (Latest
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Practice questions for this set
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conditions/circumstances that increase the probability of an insured loss
occurring
there are 3 types
Choose matching term
1 Furrier's Block 2 Broad CPP
3 hazards 4 Unfair Marketing Practices
Don't know?
,Terms in this set (140)
ISO creates standardized property and casualty
insurance policies that are approved by states and
used as a standard policy for insurers.
ISO (Insurance Services
Office) -they can be modified to comply with state
regulations
-may be modified to a degree for insurance
companies to create their own policy form
Insurance transfers the risk of loss from an individual
or business entity to an insurance company, which in
define insurance
turn spreads the costs of unexpected losses to many
individuals
define risk uncertainty concerning the occurrence of a loss
What are the 2 types of Pure and Speculative
risk?
only pure risk is insurable since it can only result in a
What is the difference loss or no change
between pure and
speculative risk? speculative risk is not insurable since it can result in a
loss or gain (like gambling)
1) Physical - hazards arising from the material,
structural, or operational features
2) Moral - refers to applicants that may lie on their
What are the 3 types of application
hazards?
3) Morale - increase the hazard presented by a risk
arising from the insured's indifference to loss because
of the existence of insurance (combustible material
near a furnace)
peril causes of loss
, conditions/circumstances that increase the probability
of an insured loss occurring
hazards
there are 3 types
direct physical damage to buildings/personal
property
direct loss
*this includes proximate cause: chain of events
resulting from a covered peril
losses considered a result of direct loss; this usually
indirect results from when repairs begin so it could be
loss/consequential losses additional living expenses for homeowners or loss of
profits for businesses
named peril lists of specific perils; no coverage for unlisted perils
open perils (all risk) insures against any risk of loss that is not excluded
vacancy refers to a property that has no people or
Explain the difference personal property in it for 60 days
between vacancy and
unoccupied unoccupied refers to a property that has no people in
it but there is personal property in it
1. Financial (a monetary interest)
3 elements of insurable
2. Blood (a relative)
risk
3. Business (a business partner)
to reimburse or make whole; permitted to collect only
indemnity
to the extent of financial loss (cannot gain)
The process by which an insurer can, after it has paid
a loss under the policy, recover the amount paid from
subrogation
any party (other than the insured) who caused the loss
or is otherwise legally liable for the loss.
Update) Real Questions and Verified
Answers | 100% Correct | Already Graded A+.
Save
Practice questions for this set
Learn 1 /7 Study with Learn
conditions/circumstances that increase the probability of an insured loss
occurring
there are 3 types
Choose matching term
1 Furrier's Block 2 Broad CPP
3 hazards 4 Unfair Marketing Practices
Don't know?
,Terms in this set (140)
ISO creates standardized property and casualty
insurance policies that are approved by states and
used as a standard policy for insurers.
ISO (Insurance Services
Office) -they can be modified to comply with state
regulations
-may be modified to a degree for insurance
companies to create their own policy form
Insurance transfers the risk of loss from an individual
or business entity to an insurance company, which in
define insurance
turn spreads the costs of unexpected losses to many
individuals
define risk uncertainty concerning the occurrence of a loss
What are the 2 types of Pure and Speculative
risk?
only pure risk is insurable since it can only result in a
What is the difference loss or no change
between pure and
speculative risk? speculative risk is not insurable since it can result in a
loss or gain (like gambling)
1) Physical - hazards arising from the material,
structural, or operational features
2) Moral - refers to applicants that may lie on their
What are the 3 types of application
hazards?
3) Morale - increase the hazard presented by a risk
arising from the insured's indifference to loss because
of the existence of insurance (combustible material
near a furnace)
peril causes of loss
, conditions/circumstances that increase the probability
of an insured loss occurring
hazards
there are 3 types
direct physical damage to buildings/personal
property
direct loss
*this includes proximate cause: chain of events
resulting from a covered peril
losses considered a result of direct loss; this usually
indirect results from when repairs begin so it could be
loss/consequential losses additional living expenses for homeowners or loss of
profits for businesses
named peril lists of specific perils; no coverage for unlisted perils
open perils (all risk) insures against any risk of loss that is not excluded
vacancy refers to a property that has no people or
Explain the difference personal property in it for 60 days
between vacancy and
unoccupied unoccupied refers to a property that has no people in
it but there is personal property in it
1. Financial (a monetary interest)
3 elements of insurable
2. Blood (a relative)
risk
3. Business (a business partner)
to reimburse or make whole; permitted to collect only
indemnity
to the extent of financial loss (cannot gain)
The process by which an insurer can, after it has paid
a loss under the policy, recover the amount paid from
subrogation
any party (other than the insured) who caused the loss
or is otherwise legally liable for the loss.
