Texas Property & Casualty License EXAM
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Practice questions for this set
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Actuaries use the law of large numbers to estimate claims
Choose an answer
Property vs Casualty: What is
1 2 What is representation?
considered property?
How does the law of large numbers
3 Speculative Risk 4
apply in insurance?
Don't know?
, Terms in this set (106)
Property vs Casualty: Structure & Personal Property
What is considered
property?
Property vs Casualty: Non-property losses. Legal liability to others. 3rd
What is considered Party
casualty?
Risk uncertainty of financial loss
Pure Risk Chance of Loss
Speculative Risk Chance of Loss or Gain (Gamble)
Insurance (covers which Pure Risk Only
type of risk?)
How does the law of large Actuaries use the law of large numbers to estimate
numbers apply in claims
insurance?
as the number of a similar loss exposure increases, the
What is the law of large
more accurate claims can be predicted from the
numbers?
group.
What is a peril? cause of loss
What is a hazard? things that increase the chance of a peril happening
Physical: visible characteristic (dead tree)
Three types of hazards Moral: Dishonest tendencies
Morale: Attitude of carelessness
Proximate Cause First cause in an unbroken chain of events
C - Competent parties (18/Right frame of mind)
Elements of a legal A - Agreement (Both parties agree)
contract (CALC) L - Legal Purpose (The risk is LEGAL)
C - Consideration (It has to be fair)
What is representation? Information believed to be true.
Questions & Answers | 100% Verified solutions
|Questions with Correct Answers 2025 latest
update!!
Save
Practice questions for this set
Learn 1 /7 Study with Learn
Actuaries use the law of large numbers to estimate claims
Choose an answer
Property vs Casualty: What is
1 2 What is representation?
considered property?
How does the law of large numbers
3 Speculative Risk 4
apply in insurance?
Don't know?
, Terms in this set (106)
Property vs Casualty: Structure & Personal Property
What is considered
property?
Property vs Casualty: Non-property losses. Legal liability to others. 3rd
What is considered Party
casualty?
Risk uncertainty of financial loss
Pure Risk Chance of Loss
Speculative Risk Chance of Loss or Gain (Gamble)
Insurance (covers which Pure Risk Only
type of risk?)
How does the law of large Actuaries use the law of large numbers to estimate
numbers apply in claims
insurance?
as the number of a similar loss exposure increases, the
What is the law of large
more accurate claims can be predicted from the
numbers?
group.
What is a peril? cause of loss
What is a hazard? things that increase the chance of a peril happening
Physical: visible characteristic (dead tree)
Three types of hazards Moral: Dishonest tendencies
Morale: Attitude of carelessness
Proximate Cause First cause in an unbroken chain of events
C - Competent parties (18/Right frame of mind)
Elements of a legal A - Agreement (Both parties agree)
contract (CALC) L - Legal Purpose (The risk is LEGAL)
C - Consideration (It has to be fair)
What is representation? Information believed to be true.
