Morale hazards Study guides, Class notes & Summaries

Arizona Health Insurance Exam Questions and Answers 100% Pass Insurance a contract in which one party (the insurance company) agrees to "make whole" the insured party against loss, damage or liability arising from an unlikely event In ___________ insurance, the policy protects survivors from losses suffered after the insured's death Life Insurance __________ the risk of loss from an individual or business to an insurance company Transfers Risk the uncertainty or chance of a loss occurring ...

PA LIFE INSURANCE LATEST VERSION GRADED A+ Insurance created as a practical means to reduce the financial impact of an unexpected loss. life insurance transfers to a life insurance company the risk of financial loss resulting from the death of an insured person. The life insurance company guarantees to pay a specified amount of money to a beneficiary when the insured dies. annuity A cash contract between a person (the annuity owner) and a life insurance company (the annuity issuer...

Risk - Answer-Chance of loss Insurance - Answer-A contract in which one party agrees to indemnify the insured party against loss, damage or liability arising from an unknown event. Pure risk - Answer-Chance of loss only Speculative - Answer-Chance of loss or gain 2 types of risk - Answer-Pure & speculative Only risk insurance covers? - Answer-Pure Exposure - Answer-Unit of measurement. Measures the amount of risk. Hazard - Answer-Condition that INCREASES the chance of loss. Types of haz...

Property and Casualty Insurance EXAMSpecific insurance - correct answer This type of insurance designates a particular item to be insured Blanket insurance - correct answer This type of insurance covers more than one item of property at a single location or one more items of property at multiple locations. Speculative - correct answer possibility of both gain and loss. Not insurable. Pure - correct answer only the possibility of loss. Insurable. What are the 5 methods of managing or ...

What is insurance? - correct answer Insurance is a contract in which one party (the insurance company) agrees to indemnify (make whole) the insured party against loss, damage or liability arising from an unknown event. It transfers the risk of loss from an individual or business to an insurance company. Insurance transaction - correct answer Solicitation, Negotiations, Sale, Advising an individual concerning coverage or claims. Two kinds of risk - correct answer Pure risk (situation ...

SC Personal Lines Questions and Answers Graded A+ 6 loss valuation methods actual cash value, replacement value, functional replacement value, market value, stated amount, agreed value waiver & estoppel a person has given up a known or legal right 4 components of a legal contract agreement, consideration, competent parties, legal purpose 6 classes of insurers authorized(admitted), unauthorized(nonadmitted), domestic, foreign, alien, independent rating services 5 marketing dis...

Loss Sharing The spreading or pooling of risks over a large group of individuals Risk pooling Same as loss sharing Law of large numbers Science of probability and experience of mortality (death) & morbidity (sickness). The larger and more homogenous the group the more certain the predictions Risk Is defined as uncertainty regarding loss Speculative risk The chance of both loss and gain Pure risk Involve only the chance of loss. Only Pure risk is insurable Peril Is an immediate specific e...

Specific insurance - ANSWER This type of insurance designates a particular item to be insured Blanket insurance - ANSWER This type of insurance covers more than one item of property at a single location or one more items of property at multiple locations. Speculative - ANSWER possibility of both gain and loss. Not insurable. Pure - ANSWER only the possibility of loss. Insurable. What are the 5 methods of managing or handling risk? - ANSWER avoid, control, retain, and transfer risk. ...

4 Types of Risk- CORRECT ANSWER "POSS: 1. Pure Risk: change of loss or no loss (no chance of gain) 2. Objective Risk: measurable and quantifiable risk based on stats 3. Speculative Risk: chance of profit, loss or no loss. 4. Subjecive Risk: Risk that is based upon perception of individual " Perils/Hazards- CORRECT ANSWER "Perils are the acutal cause of the loss (i.e. tornado, fire, earthquake). There are 3 types of Hazards: 1. Moral Hazard: a hazard of character (someone making a ...

Insurance a contract in which one party (the insurance company) agrees to "make whole" the insured party against loss, damage or liability arising from an unlikely event In ___________ insurance, the policy protects survivors from losses suffered after the insured's death Life Insurance __________ the risk of loss from an individual or business to an insurance company Transfers Risk the uncertainty or chance of a loss occurring Pure Risk situations that can only result in a loss or no ...