Property Insurance Terms and Related
Comprehensive Practice Test |
Study Guide Newest Actual
Quiz_________________?
2 types of Risk -
Answer✅
Pure Risk and Speculative risk
Pure Risk: situations that can only result in loss or no change. There is no opportunity for
financial gain. Pure risk its the only type of risk insurance companies are wiling to accept
Speculative risk: Opportunity for either loss or gain. Example_ Gambling. These types of
risk are not insurable
Quiz_________________?
Accident -
Answer✅
1
, Sudden, unplanned and unexpected event not under the control of the insured, resulting in
injury or damage that is neither expected or intended.
Quiz_________________?
Direct Loss -
Answer✅
Property insurance on covers direct loss. This means direct physical damage to buildings and
/or personal property.
This also includes other damage where the insured peril was the proximate cause of loss>
Example: insured building catch fire. When the fire dept applies water to put the fire out,
the wall an floor coverings suffer water damage. although water damage is not an insure
peril, the damage is paid under the peril of fire because the fire was the proximate cause.
Quiz_________________?
Examples of Perils -
Answer✅
Life Insurance- Insures against finacila loss caused by premature death of the insured
Health Insurance- insures against medical expense and /or loss of income caused by the
insured's sickness or accidental injury
Property Insurance- insures against loss of physical property or the loss of its income
producing ability
casualty insurance- insures against the loss and /or damage of property and resulting
liabilities.
Quiz_________________?
Hazard -
Answer✅
2
Comprehensive Practice Test |
Study Guide Newest Actual
Quiz_________________?
2 types of Risk -
Answer✅
Pure Risk and Speculative risk
Pure Risk: situations that can only result in loss or no change. There is no opportunity for
financial gain. Pure risk its the only type of risk insurance companies are wiling to accept
Speculative risk: Opportunity for either loss or gain. Example_ Gambling. These types of
risk are not insurable
Quiz_________________?
Accident -
Answer✅
1
, Sudden, unplanned and unexpected event not under the control of the insured, resulting in
injury or damage that is neither expected or intended.
Quiz_________________?
Direct Loss -
Answer✅
Property insurance on covers direct loss. This means direct physical damage to buildings and
/or personal property.
This also includes other damage where the insured peril was the proximate cause of loss>
Example: insured building catch fire. When the fire dept applies water to put the fire out,
the wall an floor coverings suffer water damage. although water damage is not an insure
peril, the damage is paid under the peril of fire because the fire was the proximate cause.
Quiz_________________?
Examples of Perils -
Answer✅
Life Insurance- Insures against finacila loss caused by premature death of the insured
Health Insurance- insures against medical expense and /or loss of income caused by the
insured's sickness or accidental injury
Property Insurance- insures against loss of physical property or the loss of its income
producing ability
casualty insurance- insures against the loss and /or damage of property and resulting
liabilities.
Quiz_________________?
Hazard -
Answer✅
2
