Moral hazards - Study guides, Class notes & Summaries

California Life-Only Study Guide with 100% Complete Solutions What does insurance do? - Correct Answer ️️ -transfers the risk of loss from an individual/ business entity to an insurance company, which then spreads the costs of unexpected losses to many individuals What is insurance? - Correct Answer ️️ -the legal agreement/ contract whereby the 2 parties involved agree to the limits of the indemnification, the circumstances under which it will occur and what things of value (consi...

Property and Casualty Insurance EXAM Questions and Answers 100% Pass Specific insurance This type of insurance designates a particular item to be insured Blanket insurance 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 possibility of both gain and loss. Not insurable. Pure only the possibility of loss. Insurable. What are the 5 methods of managing or handling risk? avoid, control, retain, and ...

Specific insurance correct answers This type of insurance designates a particular item to be insured Blanket insurance correct answers 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 answers possibility of both gain and loss. Not insurable. Pure correct answers only the possibility of loss. Insurable. What are the 5 methods of managing or handling risk? correct answers avoid, co...

MONTANA PROPERTY & CASUALTY EXAM 2024/2025 What is insurance? - Precise Answer Transfer of risk to protect from financial loss. Types of Risk - Precise Answer Pure and Speculative Pure Risk - Precise Answer Insurable risk. There is only loss. Speculative Risk - Precise Answer Not insurable. Could loss or gain financially. EX: gambling/stock market. Could win or lose money. Hazard - Precise Answer Conditions that increase the probability for loss. Types of Hazards - Precise An...

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 ri...

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 ...

KY Property and Casualty Study GuideAll of the following are examples of insurable interest EXCEPT a: A.) person's interest in property she intends to purchase next week B.) dry cleaner's interest in his customer's clothing that is still in his custody C.) person's interest in the home she owns D.) person's interest in the improvements he has added to his leased apartment A.) person's interest in property she intends to purchase next week Exclusions are often found in i...

Florida 2-40 health license chapters review already passed 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 ch...

insurance correct answer: transfers risk of loss from an individual or business to entity to an insurance company, spreads cause of unexpected losses to many individuals Insurance transactions correct answer: -solicitation -negotiations -sale (effectuation of a contract of insurance) -Advising an individual concerning coverage or claims Risk correct answer: Uncertainty or chance of loss occuring Pure Risk correct answer: Refers to situations that can only result in a loss or no ...