PROPERTY AND CASUALTY INSURANCE Exam | Questions & 100% Correct Answers (Verified) | Latest Update | Grade A+

Insurance Correct Answer: The transfer of risk through a legal contract Property Correct Answer: Covers real property and personal property against damage or loss resulting from covered causes of loss called perils casualty Correct Answer: covers non-property losses (3rd Party) Personal lines Correct Answer: Insurance for families and individuals Commercial Lines Correct Answer: Insurance for Business Risk 2 Correct Answer: Uncertainty of financial loss Pure Risk Correct Answer: Chance of loss only (insurance only covers) Speculative Risk Correct Answer: Chance of loss or gain law of large numbers Correct Answer: as the number of homogenous loss exposures increases, the more accurate claims can be predicted from the group Perils Correct Answer: causes a loss Named Peril Correct Answer: lists the perils that are covered open peril Correct Answer: cover all perils except those specifically excluded by the policy hazard 3 Correct Answer: Are not causes of loss but are things that increase the chance of a peril happening. Physical Hazard Correct Answer: something you can physically look at Moral Hazard Correct Answer: dishonest tendencies morale hazard Correct Answer: attitude of carelessness Direct Loss Correct Answer: immediate physical damage to property indirect loss Correct Answer: loss that happens after the direct loss but due to the loss of use of the property. Also called consequential proximate cause Correct Answer: the first cause in an unbroken chain of events Elements of a legal contrac