Alabama Property and Casualty Insurance
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Terms in this set (218)
Risk uncertainty, possibility of loss
Two Types of Risk Pure Risk (insurable)
Speculative Risk
Peril direct cause of loss
Hazard increases the chance that loss will occur
Three Types of Hazards Physical
Moral
Morale
Methods off Handling Risk (STARR) Sharing, Transfer, Avoidance, Retention, and
Reduction
Indemnity Restores an insured to approximate condition
existing before loss
Law of Large Numbers The larger the number of exposures (similar units of
risk), the closer the actual results will be to the
predicted results
, Elements of Insurable Risk Calculable, Affordable, Noncatastrophic,
(CANHAM) Homogeneous, Accidental, and Measurable
Adverse Selection The tendency of poor risks to purchase insurance
Types of Insurers Stock
Mutual
Fraternals
Reciprocal
Lloyd's Associations
Risk Retention Groups
Risk Purchasing Groups
Self-Insurance
Government Insurance
Domestic Company Insurer incorporated under the laws of a home
state
Foreign Company Insurer incorporated under the laws of another
state, district, or territory
Alien Company Insurer incorporated under the laws of another
country
Authorized/Admitted Insurer insurer licensed to transact insurance business in
the state
Unauthorized/Nonadmitted Insurer insurer not licensed to transact insurance business
in the state
QuickSheet Exam | Questions with 100% Correct
Answers | Verified | Latest Update 2026
Save
Terms in this set (218)
Risk uncertainty, possibility of loss
Two Types of Risk Pure Risk (insurable)
Speculative Risk
Peril direct cause of loss
Hazard increases the chance that loss will occur
Three Types of Hazards Physical
Moral
Morale
Methods off Handling Risk (STARR) Sharing, Transfer, Avoidance, Retention, and
Reduction
Indemnity Restores an insured to approximate condition
existing before loss
Law of Large Numbers The larger the number of exposures (similar units of
risk), the closer the actual results will be to the
predicted results
, Elements of Insurable Risk Calculable, Affordable, Noncatastrophic,
(CANHAM) Homogeneous, Accidental, and Measurable
Adverse Selection The tendency of poor risks to purchase insurance
Types of Insurers Stock
Mutual
Fraternals
Reciprocal
Lloyd's Associations
Risk Retention Groups
Risk Purchasing Groups
Self-Insurance
Government Insurance
Domestic Company Insurer incorporated under the laws of a home
state
Foreign Company Insurer incorporated under the laws of another
state, district, or territory
Alien Company Insurer incorporated under the laws of another
country
Authorized/Admitted Insurer insurer licensed to transact insurance business in
the state
Unauthorized/Nonadmitted Insurer insurer not licensed to transact insurance business
in the state
