Fortuitous loss - Study guides, Class notes & Summaries

Defining Property Insurance : -Protection against loss/damage to property -First party insurance -Premium exchanged for protection -Fortuitous losses (sudden and accidental) -Insurable interest -Intangible product Real vs Personal Property : R: buildings or land (can't be moved) P: office desk or machinery (can be transported) Promise that Property Insurance is based on : -Insured promise to pay a premium -Insurers promise to protect and indemnify 2 | P a g e Five elements of an ...

RMI 2101 Exam 3 Latest Update Graded A+ Insurance Supply Insurers are willing to sell insurance at a particular price. Pi Price of insurance Pi = P* + Risk Charge + Loading Pmax the most an individual will pay for insurance for a particular risk. Risks are insurarable if.. Pi < Pmax Why might Pi > Pmax? - Pi is too high - risk charge is too high, loading costs are too high. - Pmax is too low - individuals underestimate the severity or frequency of the loss. Moral haza...

fortuitous loss - Answer a loss that is accidental and unexpected fortuitous loss - Answer a loss that is accidental and unexpected pooling - Answer arrangement that facilitates the grouping of loss exposures and the resources to pay for any losses that may occur independent - Answer uncorrelated with one another. pooling arrangements functions best ( reduce the most risk to the group) when the loss exposures being pooled are these... correlated loss exposures - Answer expo...

2-20 General Lines Florida Insurance Exam Questions and Answers 100% Pass Abandonment Clause - Correct Answer ️️ -often contained in a p/c policy stating that the insured cannot abandon damaged property to the (dump on) insurer and demand reimbursement for the full value. Accounts Receivable Coverage Form - Correct Answer ️️ -Inland Marine Coverage form which insures against loss the insured suffers becasuse of an inability to collect from customers when AR records are damaged. A...

Which of the following is an example of a hazard? A. Wagering $100 on the outcome of Saturday's game B. Bringing a new product to market C. Purchasing a new home D. The cause of a loss E. Building a house near a river CORRECT ANSWER E. Building a house near a river Owning a home near a river carries a physical hazard. Answers A & B are speculative risks. Answer C is a property risk. Insurance 1-1 Which of the following is not one of the elements of an insurable risk? A. Ther...

Iowa Risk Management & Insurance Final Exam Latest Update Graded A Objective risk Objective Risks are measurable and can be improved by Loss Prevention & Loss Control Subjective risk Subjective Risk - A state of mind/worry. Improvement by discussion and understanding What are the principles of when you must show insurable interest for property and life insurance? Property - At the time of Loss Life - At the time of Purchase Define pure and speculative risk Pure - Only Negative Results Specula...

RMIN 4000 Final Exam with Certified Solutions Peril Cause of loss Risk Uncertainty about chance, timing, or amount of loss Chance of Loss Probability that an event will occur Objective Risk The relative variation of actual loss from expected loss; (Actual- Expected)/Expected; higher variation means higher risk Law of Large Numbers Objective risk varies inversely with the square root of the number of cases Subjective Risk Uncertainty based on a person's mental condition or...

RMIN Test 1 pt 2 Questions & Answers All of the following are characteristics of insurance EXCEPT A) risk avoidance. B) pooling of losses. C) payment of fortuitous losses. D) indemnification. - ANS-A) risk avoidance. Which of the following is implied by the pooling of losses? A) sharing of losses by an entire group B) inability to predict losses with any degree of accuracy C) substitution of actual loss for average loss D) increase of objective risk - ANS-A) sharing of losses by...

Major roles of insurance - Risk management to deal with loss exposures; transfer system of financial loss from insured to insurer; business sufficient to pay claims and provide profit; contract between insured and insurer What are risk management techniques? - Loss prevention; loss reduction; risk transfer; loss avoidance Define Insurance Policy - A contract that states the rights and duties of both the insured and the insurer regarding the transfer and costs of losses. Define Exposure Un...

PA property and casualty insurance examProperty -correct answer you can possess/ physically touch BI -correct answer bodily injury PD -correct answer Property damage Liability/casualty -correct answer what you pay the other guy personal lines insurance -correct answer cover needs of individual or family (auto,boat,camper,rv) commercial lines insurance -correct answer needs of a business direct loss -correct answer example - house burns down indirect loss -correct answer exam...