WebCE Property & Casualty Prep Exam With Questions ANd 100%
CORRECT ANSWERS 2025
Terms in this set (36)
Risk Chance of loss
5 Risk or Loss Factors 1. Risk 2. Loss 3. Exposure 4. Peril 5. Hazard
Individual or group to transfer over to insurance company the
Insurance allows:
risk of financial loss from a destructive event
To indemnify policyholder against covered losses or restore
Fundamental purpose of insurance
is: policyholder back to same financial position they were in
before
Insurance companies may used 1. Person 2. Property 3. Activity
term risks to refer to insured:
Loss Unplanned or unwelcome reduction in economic value
1. Direct loss - immediate result of and event caused by a
What is Direct and Indirect loss
covered peril 2. Indirect loss - remote result of an event caused
by covered peril
Exposure State of being subject to a possible loss
Units to the person, property or event (more exposure units,
Insurer measures exposure by
the greater the premium)
Exposure is also referred to as: Total risk an insurer faces with insured
Peril The destructive event that insurance guards against
6 types of peril 1. Fire 2. Explosion 3. Windstorm 4. Flood 5.Theft 6. Collision
Insurance policy provides Financial protection against losses caused by specified peril
Havard Is condition that increases the likely occurrence of a peril or severity of a
loss
Name the 3 types of hazards 1. Moral 2. Morale 3. Physical
Moral hazard Tendencies or traits of an individual that increases the chance of a loss
Tendencies of individual that increase the chance of a loss from
Morale hazard
state of mind, attitude, or indifference
Physical Hazard Physical conditions that increase the chance of loss
1. Insufficient light in high crime commercial area 2. Potholes 3.
Name 6 types of physical hazards:
Slippery floors 4. Unsanitary conditions 5. Congested traffic 6.
Unguarded premises
Legal or regulatory environment characteristics that affect an
Legal hazard
insurer's ability to provide premium at a fair price that reflects
CORRECT ANSWERS 2025
Terms in this set (36)
Risk Chance of loss
5 Risk or Loss Factors 1. Risk 2. Loss 3. Exposure 4. Peril 5. Hazard
Individual or group to transfer over to insurance company the
Insurance allows:
risk of financial loss from a destructive event
To indemnify policyholder against covered losses or restore
Fundamental purpose of insurance
is: policyholder back to same financial position they were in
before
Insurance companies may used 1. Person 2. Property 3. Activity
term risks to refer to insured:
Loss Unplanned or unwelcome reduction in economic value
1. Direct loss - immediate result of and event caused by a
What is Direct and Indirect loss
covered peril 2. Indirect loss - remote result of an event caused
by covered peril
Exposure State of being subject to a possible loss
Units to the person, property or event (more exposure units,
Insurer measures exposure by
the greater the premium)
Exposure is also referred to as: Total risk an insurer faces with insured
Peril The destructive event that insurance guards against
6 types of peril 1. Fire 2. Explosion 3. Windstorm 4. Flood 5.Theft 6. Collision
Insurance policy provides Financial protection against losses caused by specified peril
Havard Is condition that increases the likely occurrence of a peril or severity of a
loss
Name the 3 types of hazards 1. Moral 2. Morale 3. Physical
Moral hazard Tendencies or traits of an individual that increases the chance of a loss
Tendencies of individual that increase the chance of a loss from
Morale hazard
state of mind, attitude, or indifference
Physical Hazard Physical conditions that increase the chance of loss
1. Insufficient light in high crime commercial area 2. Potholes 3.
Name 6 types of physical hazards:
Slippery floors 4. Unsanitary conditions 5. Congested traffic 6.
Unguarded premises
Legal or regulatory environment characteristics that affect an
Legal hazard
insurer's ability to provide premium at a fair price that reflects
