Fundamentals of Insurance Exam Bundle

Main purpose of Insurance - Answer Allow the spread of risk Definition of Insurance - Answer -Payment's made only when a certain peril has damaged the insured object -Payment's limited to actual amount of loss, no more and no less -There's no payment for losses that are deliberately caused b...

Three Main Categories Of Risk - Answer1) Personal Risk 2)Property Risk 3)Liability Risk What is "Spread of Risk"? - AnswerInsurance provides a mechanism in which the losses of few are shared among many Property and Casualty Insurance includes...(3 types of insurance) - Answer1) Automobile ...

- Answer The major function of insurance is to achieve a spread of risk. Explain what is meant by "spread of risk" - AnswerTo share the losses of a few among the many An analysis of the definition of insurance reveals five important points. Identify these five important points - Answer- Shif...

Chapter 1 - Intro - ANSWER List the 5 functions of insurance: - ANSWER1) Spread of risk 2) Basis of credit system 3) Eliminate worry and develop entrepreneurship 4) Loss reduction and prevention (road safety, alarms, etc.) 5) Employment opportunity Definition of insurance (3 parts) - ANSWE...

Probably the best way to define risk is to say, "Risk is the chance of financial loss as a result of loss or damage to the object of insurance or some other happening." - AnswerTrue. Pure Risk: Provides only the potential for financial loss with no chance of gain or profit. Insurance is provide...

A loss exposure is defined as: (A) a loss that might occur (B) an undesirable end result of a risk (C) the largest possible loss (D) the probability of a loss - AnswerThe answer is (A) by definition Which of the following statements concerning the beneficiary provisions in a life insurance po...

A building valued at $120,000 is insured for $30,000 and there is an 80% co-insurance clause on the policy. The building was totally destroyed by fire last weekend. The insured would receive a settlement of: a. 7,000 b. 12,000 c. 30,000 d. 37,5000 - Answerc. 30,000 The reinstatement clause ...

Three Main Categories Of Risk - Anawer1) Personal Risk 2)Property Risk 3)Liability Risk What are the FIVE elements of a contract? A) Agreement, Risk, Loss, Consideration, Legality B) Legal Capacity, Legality of Object, Consideration, Agreement, Genuine Intention C) Agreement, Legal Cap...

Chapter 1 - AnswerIntroduction to General Insurance The major function of insurance is to achieve a spread of risk. Explain what is meant by spread of risk. - Answerthe major function of insurance is to share the losses of the few among the many What are the five functions of insurance? - Answ...

The coverage limits on Homeowners Insurance Policies are determined after calculating the Replacement Cost of the dwelling building. Once this value is determined, the rest of the coverage limits are calculated. Which of the following coverage limits is correct? a) Personal Property- 100% of Covera...

every policy of fire insurance ly covers fire,smoke, and specified types of explosions required by law to cover fire, windstorm,and lightning s fire,explosion, and windstorm required by law to cover at least fire, lightning, and specified types of explosions - A required by law to cover at l...

Insurance - Answerassurance given to the insured by the insurer to lessen the financial damage suffered during an insured occurrence Peril - Answerthe cause of a financial loss (ie. fire, water, earthquake) Risk - Answerthe chance of financial loss Purpose of insurance - Answerto allow the ...

Risk - AnswerThe Chance of loss happening Insurance Policy - Answerlegal contract designed to cover specific future losses Product Option - AnswerSpecial features added to a basic policy that increase the cost of the premium Insured - AnswerIndividual who agrees to transfer risk by paying c...

Your client has made application for "appraisal". The intent of the appraisal process is to settle the dispute between your client and the insurer regarding the: a. Amount of the settlement being offered b. Denial of insurance coverage under the policy c. Right of the insured to purchase the sa...