SPECULATIVE RISK correct answersChance of Financial loss or gain
Speculative risk correct answersgambling
Pure risk correct answersChance of Financial loss, no gain
loss correct answersUnintended unforeseen/ financial
loss correct answersNot sentimental
peril correct answersreason lo...
INSURANCE EXAM
SPECULATIVE RISK correct answersChance of Financial loss or gain
Speculative risk correct answersgambling
Pure risk correct answersChance of Financial loss, no gain
loss correct answersUnintended unforeseen/ financial
loss correct answersNot sentimental
peril correct answersreason loss occured
hazard correct answersIncreases likelihood or severity of loss
Physical hazard correct answersMaterial or structural ( oily rag, icy road )
Moral hazard correct answersMorality or ethics (intentional, fraud, arson)
Morale hazard correct answersHuman carelessness or irresponsibility (cell phones, garage doors)
4 risk management techniques 1. reduce correct answersLowering hazard
4 risk management techniques
2. Retain correct answersSelf-insure or deductible 4 risk management techniques
3. Avoid correct answersDo not engage in the activity
4 risk management techniques
4. transfer correct answersPurchase insurance so the company is at risk not you
First dollar coverage correct answersNo deductible
insurance correct answersTransfer of financial risk
Law of large numbers correct answersPredicts total future losses, no individual losses
Legally binding contract correct answersInsurance policy
binder correct answerstemp insurance contract 90 days, written or verbal
War or nuclear damage correct answersNever covered
Insurable interest correct answersFinancial loss a person suffers when property is destroyed
contract correct answersMust be legal
Contract correct answersBoth offer and acceptance
Contract correct answerscompetent parties - not intoxicated, minor or legally insane
contract correct answersconsideration - trade of value
(act, promise, money)
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