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Exam FX Insurance Terms and Related Concepts Questions and Answers Rated A

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Exam FX Insurance Terms and Related Concepts Questions and Answers Rated A Insurance ✔✔Transfers risk of loss from an individual or business to a company Law Of Large Numbers ✔✔States that... the larger # of people with a similar exposure to loss, the more predictable the losses will be Insurable Interest ✔✔The insured would become subject to financial loss if the insured property was damaged. 3 Elements Of Insurable Risk ✔✔* Financial (monetary interest) *Blood (relative) *Business (business partner) Risk ✔✔Uncertainty or chance of loss occurring. Pure Risk ✔✔Situations that can only cause loss and no gain Speculative Risk ✔✔Opportunity for either loss or gain Perils ✔✔Causes of loss insured against in an insurance policy Hazard ✔✔Conditions of situations that increase risk of insured loss occurring. Indemnity (sometimes called reimbursement) ✔✔Permitted to collect only to the extent of financial loss, is not allowed to gain financially because of the existence of insurance contract. Subrogation ✔✔The insurers legal right to seek damages from third parties after it has reimbursed the insured for loss. An Occurrence ✔✔A broader definition of accident becau [Show More]

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