Florida Property & Casualty Insurance Exam|
Complete Exam Questions and CORRECT
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Terms in this set (79)
Depreciation reduction in value, particularly due to wear and tear
Exposure susceptibility to risk
a legal term meaning that a product is suitable for its
Implied Warranty intended purpose and that it fits an ordinary buyer's
expectations
a contract between a policy owner (and/or insured)
and an insurance company which agrees to pay the
Insurance Policy
insured or the beneficiary for loss caused by specific
events
Insurer (principal) the company who issues an insurance policy
depreciation in the value of a property due to
Obsolescence
becoming outdated
the money paid to the insurance company for the
Premium
insurance policy
a transfer of risk of loss from an individual or a
business entity to an insurance company, which, in
Insurance
turn, spreads the costs of unexpected losses to many
individuals
, the larger the number of people with a similar
exposure to loss, the more predictable actual losses
Law of Large Numbers will be; this law forms the basis for statistical
predication of loss upon which insurance rates are
calculated
an insurance company looks at a large group of
similar risks (35-year-olds with similar lifestyles and
Example of Law of Large health conditions) and makes conclusions based on
Numbers statistics of past losses, allowing for a general idea
about the predicted time of death and to se premiums
accordingly
As the number of people future losses become more predictable
in a risk pool increases
the insured must have insurable interest in the person
Insurable Interest
or property covered by an insurance policy
the insured would incur a financial loss if the insured
Insurable Interest in property was damaged; an insurable interest may be
Property Insurance created by the ownership, custody or control of a
property
Financial (a monetary interest)
3 elements of insurable
Blood (a relative)
risk
Business (a business partner)
In property and casualty insurable interest must exist at the time of the loss
insurance
Risk the uncertainty or change of a loss occurring
The two types of risk pure and speculative
situations that can only result in a loss or no change;
Pure Risk no opportunity for financial gain; the only type of risk
that insurance companies are willing to accept
the opportunity for either loss or gain; gambling is an
Speculative risk
example; these types of risks are not insurable
Complete Exam Questions and CORRECT
Answers| (2025 update) Assured success| grade
A+
Save
Terms in this set (79)
Depreciation reduction in value, particularly due to wear and tear
Exposure susceptibility to risk
a legal term meaning that a product is suitable for its
Implied Warranty intended purpose and that it fits an ordinary buyer's
expectations
a contract between a policy owner (and/or insured)
and an insurance company which agrees to pay the
Insurance Policy
insured or the beneficiary for loss caused by specific
events
Insurer (principal) the company who issues an insurance policy
depreciation in the value of a property due to
Obsolescence
becoming outdated
the money paid to the insurance company for the
Premium
insurance policy
a transfer of risk of loss from an individual or a
business entity to an insurance company, which, in
Insurance
turn, spreads the costs of unexpected losses to many
individuals
, the larger the number of people with a similar
exposure to loss, the more predictable actual losses
Law of Large Numbers will be; this law forms the basis for statistical
predication of loss upon which insurance rates are
calculated
an insurance company looks at a large group of
similar risks (35-year-olds with similar lifestyles and
Example of Law of Large health conditions) and makes conclusions based on
Numbers statistics of past losses, allowing for a general idea
about the predicted time of death and to se premiums
accordingly
As the number of people future losses become more predictable
in a risk pool increases
the insured must have insurable interest in the person
Insurable Interest
or property covered by an insurance policy
the insured would incur a financial loss if the insured
Insurable Interest in property was damaged; an insurable interest may be
Property Insurance created by the ownership, custody or control of a
property
Financial (a monetary interest)
3 elements of insurable
Blood (a relative)
risk
Business (a business partner)
In property and casualty insurable interest must exist at the time of the loss
insurance
Risk the uncertainty or change of a loss occurring
The two types of risk pure and speculative
situations that can only result in a loss or no change;
Pure Risk no opportunity for financial gain; the only type of risk
that insurance companies are willing to accept
the opportunity for either loss or gain; gambling is an
Speculative risk
example; these types of risks are not insurable
