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Property And Casualty


  
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The person, organization or business covered by the insurance policy is referred to as:

 
Insured
To restore an insured to the prior financial condition that existed prior to the loss is considered:
 
Indemnity
Which of the following would NOT be an insurable interest:

 
“Speculative Risk” is a chance of both a gain and a loss. Speculative risks are NOT insurable.
What are the five methods of Risk Management:
 
“Share, Transfer, Avoid, Retain, Reduce” STARR
A contract in which the amount of money to be given up by each party is NOT equal is considered:
 
Aleatory

The definition of a peril is:
 
A cause of loss

Lines of Insurance that require rates to be filed and approved by the state before they can be used would be:
 
Prior Approval

The principle of restoring a victim of loss to the same financial position as before the loss occurred is called:
 
indemnity
Insurance represents which way of dealing with risk?
 
Transfer
For property and casualty insurance, insurable interest must exist:
 
at the time of loss
Things that increase the likelihood of a loss or the seriousness of a loss are called:
 
hazards
An insurer formed under the laws of the state in which an insurance policy is written is called:
 
a domestic insurer

Authority of an agent that the public may reasonably believe the agent to have is called:
 
apparent authority
Failure to use the degree of care of a reasonable person is called:
 
negligence
An unbroken chain of cause and effect between an occurrence of an insured peril and resulting injury is called:
 
proximate cause

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