exam for work

hazards are classified as

Physical, Moral, Morale

adverse selection is a concept best described as

Risks with higher probability of loss seeking insurance more often than other risks.

involves the opportunity for either loss or gain.

Speculative risk

Peril is most easily defined as

The cause of loss insured against

what documentation grants express autority to an agent

agents contract with the principal

type of agent also called "percieved authority"

apparent

in insurance an offer is usually made when

applicant submits an application to the insurer

an applicant knowlingly fails to communicate info that would help underwriter mske s solving decision regarding coverage.

concealment

An insurance contract requires both to insured and insurer meet certain conditions in order for the contract to be enforceable. what contract characteristics does this meet?

conditional

When an insured makes truthful statements on the application for insurance and pays the required premium, it is known as which of the following?

consideration

A loss that is specificc as to cause/ time/ place/ amount insurer must be able to determine how much benefit.

definite and measureable

a loss that is outisde insureds control

due to chance

avoidance

eliminating exposure to a loss

The authority granted to an agent through the agents contract is referred as

express authority

what insurance concept is associated with the names of weiss and fitch

guides describing company financial integrity

in insurance transactions fiduciary responsiblilites means

handling insurer funds in a trust capacity

conditions or situtions increase probability of insured loss occuring

hazards

transfers the risk of loss from an individual or business entity to an insurance company, which in turn spreads the costs of unexpected losses to many individuals.

insurance

what law states the larger numbers of people with a similar exposure to loss the more predictable actual losses will be

law of large numbers

defined as reduction, decrease, or disapperance

loss

who are owned by policy owners

mutual companies

stock companies issue

non participationg

who does not pay dividends to policy owners?

nonparitcipatijng

who doesnt share profits or losses? what policy?

nonparticipatijng

mutual companies issues

participating policies

a participating insurance policy may do which of the following

pay divendends to policyowner

a tornado that destroys property would be an example of

peril

what is the cause of loss insured aganist in insurance policy

peril

self insurance, deductibles, and copayments are examples of risk retnetion except

premiums

which of the following statments is an accurate comparasion bw private and goverment insureres

private insurers may be authorized to transact insurance by state insurance department

can only result in loss or no change

pure risk

the risk of loss may be classified as

pure risk and speculative risk

what is the purpose of risk retention?

reduce expenses, and improve cash flow. increase control of claim reserving. fund for loss that cannont be insured.

installing deadbolt locks on the doors is an example of which method of handling risk

reduction

uncertainty or chance of a loss occuring

risk

a reciprocal insurance exchange is a formal

risk sharing arrangement

what is the method of dealing risk for a group of indiviudal or business

sharing

stock companies are owned by

stockholders

taxable divendends are paid to

stockholders

officiers are selectwd by

stockholders and manage stock insurance company

Not all losses are insurable, and there are certain requirements that must be met before a risk is a proper subject for insurance. These requirements include all of the following EXCEPT

the loss be intentional

what is the most effective way to handle risk?

transfer it

an insurance company recieves an application with some info missing but still issues it anyways. what is this issue called?

waiver