100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Previously searched by you
Previously searched by you
logo
Missouri Property and Casualty Insurance Exam Questions and Answers $10.99   Add to cart
Quickly navigate to
Preview
  2.  
  3. Missouri Property And Casualty Insurance
  4.  
  5. Missouri Property and Casualty Insurance

Exam (elaborations)

Missouri Property and Casualty Insurance Exam Questions and Answers
 12 views  0 purchase
  • Course
  • Missouri Property and Casualty Insurance
  • Institution
  • Missouri Property And Casualty Insurance

Risk - ANSWER-The chance or uncertainty of loss. Exposure - ANSWER-A condition or situation that presents a possibility of loss. Ways to manage risk - ANSWER-Avoid Risk control risk retain a risk transfer a risk control risk - ANSWER-techniques that limit loss severity come under the he...

[Show more]

Preview 3 out of 23  pages

Document information

  • May 18, 2024
  • 23
  • 2023/2024
  • Exam (elaborations)
  • Questions & answers

Subjects

  • missouri property and casualty insurance exam ques
  • missouri property and casualty insurance stuvia
  • risk answer the chance or uncertainty of loss

Written for

  • Missouri Property and Casualty Insurance
  • Missouri Property and Casualty Insurance

Seller

avatar-seller
IMORA

Reviews received

Content preview

Missouri Property and Casualty
Insurance Exam Questions and Answers


Risk - ANSWER-The chance or uncertainty of loss.



Exposure - ANSWER-A condition or situation that presents a possibility of loss.



Ways to manage risk - ANSWER-Avoid Risk

control risk

retain a risk

transfer a risk



control risk - ANSWER-techniques that limit loss severity come under the heading of
risk reduction



retain a risk - ANSWER-if any loss occurs, they will pay for it themselves

can be intentional or unintentional



Transfer a risk - ANSWER-Insurance

hold harmless agreement



hold harmless agreement - ANSWER-a contractual arrangement where one party
assumes the liability of a situation and relieves the other party of responsibility.



Purpose of Insurance - ANSWER-to transfer risk



insurance - ANSWER-a contract or device for transferring risk from a person, business,
or organization to an insurance company that agrees, in exchange for a premium, to
pay for losses through an accumulation of premiums

,Elements of Insurability - ANSWER-Pure Risk

Insurable Interest

Definite

Unexpected

Financial Hardship

Calculable

Affordable

Losses are Predictable

Adequate Spread of Risk



Speculative risks - ANSWER-risks in which there exists both the possibility of gain and
the possibility of loss



pure risks - ANSWER-involve only the possibility of loss



insurable interest - ANSWER-before you can benefit from insurance, you must have a
chance of financial loss or a financial interest in the property



Definite - ANSWER-Risk of loss must be defined as to time and loss and be difficult to
counterfeit or falsify



Unexpected - ANSWER-If results are expected then it doesn't qualify as a risk.



Financial Hardship - ANSWER-Risk must be large enough for financial hardship for the
individual involved.



Calculable - ANSWER-Must be able to be assigned a financial value.



Affordable - ANSWER-The cost of the insurance must be affordable to the consumer
and be able to cover an unexpected loss.

, Losses are Predictable - ANSWER-There must be a large number of persons with
similar potential loss available for the losses to become predictable.



Adequate spread of risk - ANSWER-Must not happen to a large number of the insured
at the same time. Not insuring every person that would be effected by the same risk.



Peril - ANSWER-the cause of loss



Hazard - ANSWER-anything that increases the chance of loss



physical hazard - ANSWER-a hazard that arises from the condition, occupancy, or use
of the property itself



morale hazard - ANSWER-an individual, through carelessness or by irresponsible
actions, can increase the possibility for a loss



moral hazard - ANSWER-a person might create a loss situation on purpose just to
collect from the insurance company



contract - ANSWER-legal agreement between two competent parties that promises a
certain performance in exchange for a certain consideration



Elements of a Valid Contract - ANSWER-Competent parties

Legal purpose

Offer and acceptance (agreement)

consideration



Competent Parties - ANSWER-a person who is a minor, insane, or under the influence
of alcohol or drugs is considered incompetent.

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller IMORA. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $10.99. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

80461 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 14 years now

Start selling
$10.99
  • (0)
  Add to cart