FUNDAMENTALS OF INSURANCE BUNDLED EXAM!!!

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...

Fundamentals Of Insurance (BC) Exam Questions & Answers (GRADED A+) Insurance plays an important role in managing financial risk. The main purpose of Insurance is to: A. Enable the consumer to obtain loan or mortgage. B. Provide employment and investment capital. C. Allow spread of risk. ...

Fundamentals of Insurance - Chapter 1- 2 Practice Questions & Answers 100% Correct!!Three Main Categories Of Risk - ANSWER-1) Personal Risk 2)Property Risk 3)Liability Risk What is "Spread of Risk"? - ANSWER-Insurance provides a mechanism in which the losses of few are shared among many Pr...

List the 5 functions of insurance: - ANSWER-1) 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) - ANSWER-1) insurance provides a mea...

List the 5 functions of insurance: - ANSWER-1) 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) - ANSWER-1) insurance provides a mea...

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." - ANSWER-True. Pure Risk: Provides only the potential for financial loss with no chance of gain or profit. Insurance is provid...

The major function of insurance is to achieve a spread of risk. Explain what is meant by "spread of risk" - ANSWER-To 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-- Shifting one'...

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 - ANSWER-c. 30,000 The reinstatement clause...

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 - ANSWER-The answer is (A) by definition Which of the following statements concerning the beneficiary provisions in a life insurance p...

Three Main Categories Of Risk - ANSWER-1) 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 Ca...

Fundamentals of Insurance FINAL (End of Chapter Self-Examination Questions & Study Checklist) with Complete SolutionsChapter 1-Introduction to General Insurance The major function of insurance is to achieve a spread of risk. Explain what is meant by spread of risk. - ANSWER-the major function of ...

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...

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

What is the role of the federal Government when insurers receive federal licensing? - ANWER-Licensing provided only to companies that can meet strict financial standards. Established by the office of the Superintendent of Financial Institutions (OSFI). Insurers are monitored on an ongoing basis. ...