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New Hampshire Property & Casualty License
Questions with 100% Correct Answers | Verified |
Latest Update
Risk pools - (answers)Large groups of similar individuals
Law of Large Numbers - (answers)We can predict fairly accurately what will
happen to a large group of similar individuals in a given time period. This allows
insurers to calculate their probable losses and to establish premiums
Acturaries - (answers)Make mathematical predictions about things like how many
of the people in any given risk pool will have their home destroyed by a tornado
Principle of Indemnity - (answers)The principle that insurance policies should
provide a benefit no greater than the loss suffered by an insured.
Insurable Interest - (answers)Any financial interest in life or property such that, if
the life or property were lost or harmed, the insured would suffer financially.
True or false - (answers)With property and casualty insurance polices, insurable
interest must be present at the time of the loss.
Pure risk - (answers)A situation in which there are only the possibilities of loss,
there is never the possibility of a profit or financial gain.
Speculative risk - (answers)a situation in which either profit or loss is possible
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Which are insurable (pure or speculative risks) - (answers)Pure
Static risk - (answers)Insurable. Do not frequently fluctuate and result from a
unchanging environment (flood every 100 years)
dynamic risk - (answers)Not insurable. Risk associated with change (new and fatal
virus)
Fundamental risk - (answers)Insurable. Affect entire groups of people or property
within a society (flood, earthquake)
Particular risk - (answers)Usually insurable. Affect only the individual person or
family and not the entire community or society. (burglary)
Peril - (answers)A peril is the actual cause of loss
Hazard - (answers)a hazard is any condition that increases the possibility or
severity of a loss
Physical Hazards - (answers)the material, structural, environmental, operational
features of an insured risk that may create or increase the opportunity for injury
or damage
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Moral hazard - (answers)a condition that increases the probability that a person
will intentionally cause or create a loss.
Morale hazard - (answers)a condition of inattention to, or disregard for, one's
own life, health, property, or behavior that increases the frequency or severity of
a loss.
risk avoidance - (answers)Risk avoidance simply means avoiding the hazard. For
example, to avoid the risk of an automobile accident or house fire, a person
simply does not purchase a car or house
Transfer of Risk - (answers)This is the most common and most popular method of
handling risk. A person can transfer their risk to an insurance company, in
exchange for paying a regular
premium to the company.
sharing a risk - (answers)Even when a risk is transferred to an insurer, it is
common to share
some of the risk. For example, the deductibles and premiums an insured pays for
insurance,
are a form of risk sharing. The insured accepts responsibility for a small portion of
the risk,
while transferring the larger portion of the risk to the insurer
New Hampshire Property & Casualty License
Questions with 100% Correct Answers | Verified |
Latest Update
Risk pools - (answers)Large groups of similar individuals
Law of Large Numbers - (answers)We can predict fairly accurately what will
happen to a large group of similar individuals in a given time period. This allows
insurers to calculate their probable losses and to establish premiums
Acturaries - (answers)Make mathematical predictions about things like how many
of the people in any given risk pool will have their home destroyed by a tornado
Principle of Indemnity - (answers)The principle that insurance policies should
provide a benefit no greater than the loss suffered by an insured.
Insurable Interest - (answers)Any financial interest in life or property such that, if
the life or property were lost or harmed, the insured would suffer financially.
True or false - (answers)With property and casualty insurance polices, insurable
interest must be present at the time of the loss.
Pure risk - (answers)A situation in which there are only the possibilities of loss,
there is never the possibility of a profit or financial gain.
Speculative risk - (answers)a situation in which either profit or loss is possible
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Which are insurable (pure or speculative risks) - (answers)Pure
Static risk - (answers)Insurable. Do not frequently fluctuate and result from a
unchanging environment (flood every 100 years)
dynamic risk - (answers)Not insurable. Risk associated with change (new and fatal
virus)
Fundamental risk - (answers)Insurable. Affect entire groups of people or property
within a society (flood, earthquake)
Particular risk - (answers)Usually insurable. Affect only the individual person or
family and not the entire community or society. (burglary)
Peril - (answers)A peril is the actual cause of loss
Hazard - (answers)a hazard is any condition that increases the possibility or
severity of a loss
Physical Hazards - (answers)the material, structural, environmental, operational
features of an insured risk that may create or increase the opportunity for injury
or damage
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Moral hazard - (answers)a condition that increases the probability that a person
will intentionally cause or create a loss.
Morale hazard - (answers)a condition of inattention to, or disregard for, one's
own life, health, property, or behavior that increases the frequency or severity of
a loss.
risk avoidance - (answers)Risk avoidance simply means avoiding the hazard. For
example, to avoid the risk of an automobile accident or house fire, a person
simply does not purchase a car or house
Transfer of Risk - (answers)This is the most common and most popular method of
handling risk. A person can transfer their risk to an insurance company, in
exchange for paying a regular
premium to the company.
sharing a risk - (answers)Even when a risk is transferred to an insurer, it is
common to share
some of the risk. For example, the deductibles and premiums an insured pays for
insurance,
are a form of risk sharing. The insured accepts responsibility for a small portion of
the risk,
while transferring the larger portion of the risk to the insurer
