Exam Fx PROPERTY & CASUALTY | Questions and Answers 100% Pass

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Exam Fx (PROPERTY & CASUALTY) Questions and Answers 100% Pass Law of Large Numbers ✔✔The larger the number of people with a similar exposure to loss, the more predictable actual losses will be.... Insurance ✔✔Transfers the risk of loss from an individual or business entity to an insurance company The three elements of insurable risk are ✔✔1) Financial 2) Blood (relative) 3) Business Risk ✔✔The uncertainty or chance of a loss occurring Types of risks are ✔✔1) Pure risk 2) Speculative risk What type of risk does insurance cover? ✔✔Pure risk What is pure risk? ✔✔It can only result in a loss or no change What type of risk is not insurable? ✔✔speculative risk What is speculative risk? ✔✔Opportunity for loss or gain. For example, gambling. What is a peril? ✔✔a specific cause of loss What is a hazard? ✔✔conditions or situations that increase the probability of a loss occurring What is a loss? ✔✔reduction, decrease or disappearance of value of the person or property insured. What is indemnity? ✔✔provision in an insurance policy that states that in the event of loss, an insured can only collect to the extent of the financial loss. The insured is not allowed to gain financially. Subrogation ✔✔insurer's legal right to seek [Show More]

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