The person, organization or business covered by the insurance policy is referred to as:
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Insured |
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To restore an insured to the prior financial condition that existed prior to the loss is considered:
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Indemnity |
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Which of the following would NOT be an insurable interest:
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“Speculative Risk”
is a chance of both a gain and a loss. Speculative risks are NOT insurable.
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What are the five methods of Risk Management:
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“Share, Transfer, Avoid, Retain, Reduce”
STARR
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A contract in which the amount of money to be given up by each party is NOT equal is considered:
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Aleatory |
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The definition of a peril is: |
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A cause of loss |
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Lines of Insurance that require rates to be filed and approved by the state before they can be used would be:
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Prior Approval |
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The principle of restoring a victim of loss to the same financial position as before the loss occurred is called:
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indemnity |
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Insurance represents which way of dealing with risk? |
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Transfer |
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For property and casualty insurance, insurable interest must exist:
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at the time of loss
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Things that increase the likelihood of a loss or the seriousness of a loss are called: |
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hazards |
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An insurer formed under the laws of the state in which an insurance policy is written is called:
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a domestic insurer |
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Authority of an agent that the public may reasonably believe the agent to have is called:
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apparent authority |
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Failure to use the degree of care of a reasonable person is called:
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negligence |
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An unbroken chain of cause and effect between an occurrence of an insured peril and resulting injury is called:
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proximate cause |
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