Exam (elaborations)
Exam- ALABAMA PERSONAL LINES EXAM|108 QUESTIONS AND ANSWERS
- Course
- Institution
Exam- ALABAMA PERSONAL LINES EXAM|108 QUESTIONS AND ANSWERS
[Show more]
Content preview
Exam- ALABAMA PERSONAL LINES EXAM|108QUESTIONS AND ANSWERS
insurance Correct Answer-transfer of risk from a person or business to an insurer
risk Correct Answer-uncertainty/possibility of a loss
Speculative Risk Correct Answer-A chance of loss, no loss, or gain.
Pure Risk Correct Answer-chance of loss only insurance companies will insure
exposure Correct Answer-possibility that a loss will occur
peril Correct Answer-The cause of a loss (Fire)
direct Correct Answer-physical loss
hazard Correct Answer-Increases the chance of loss
, Exam- ALABAMA PERSONAL LINES EXAM|108
QUESTIONS AND ANSWERS
Physical Hazard Correct Answer-The hazard can be seen
moral hazard Correct Answer-dishonesty
Morale Hazard Correct Answer-carelessness
Method of handling risk Correct Answer-STARR
Sharing
Transfer
Avoidance
Retention
Reduction
contract (policy) Correct Answer-an agreement between the insured and the insurer
1st party Correct Answer-Insured (customer)
, Exam- ALABAMA PERSONAL LINES EXAM|108
QUESTIONS AND ANSWERS
2nd party Correct Answer-insurer, insurance company
Law of Large Numbers Correct Answer-the large the group, the more accurately losses can
be predicted
Elements of an Insurable Risk Correct Answer-CANHAM: Calculable, affordable, Non-
catastrophic, Homogenous (similar exposures), Accidental, Measurable
Adverse Selection Correct Answer-risks that have a greater than average chance of loss
Reinsurance Correct Answer-an insurance company (the ceding company) paying another
insurance company (reinsurer) to take some of the companies risk of catastrophic loss
Stock Insurer Correct Answer-a corporation owned by stockholders
The benefits of buying summaries with Stuvia:
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
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
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 TheeGrades. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $13.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
77254 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now