Texas Property & Casualty License Questions and Answers Graded A

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Texas Property & Casualty License Questions and Answers Graded A Property vs Casualty: What is considered property? ✔✔Structure & Personal Property Property vs Casualty: What is considered casu... alty? ✔✔Non-property losses. Legal liability to others. 3rd Party Risk ✔✔uncertainty of financial loss Pure Risk ✔✔Chance of Loss Speculative Risk ✔✔Chance of Loss or Gain (Gamble) Insurance (covers which type of risk?) ✔✔Pure Risk Only How does the law of large numbers apply in insurance? ✔✔Actuaries use the law of large numbers to estimate claims What is the law of large numbers? ✔✔as the number of a similar loss exposure increases, the more accurate claims can be predicted from the group. What is a peril? ✔✔cause of loss What is a hazard? ✔✔things that increase the chance of a peril happening Three types of hazards ✔✔Physical: visible characteristic (dead tree) Moral: Dishonest tendencies Morale: Attitude of carelessness Proximate Cause ✔✔First cause in an unbroken chain of events Elements of a legal contract (CALC) ✔✔C - Competent parties (18/Right frame of mind) A - Agreement (Both parties agree) L - Legal Purpose (The risk is LEGAL) C - Consideration (It has to be fair) What is representation? ✔✔Information believed to be true. What is misrepresentation? ✔✔Information that is not true. False information. What is material misrepresentation? ✔✔ [Show More]

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