6 Questions |
By Fsspc | Last updated: Jan 27, 2016
| Total Attempts: 9903
This chapter reviews basic principles that provide a foundation
for the insurance industry. They range from the concept of risk, to the idea
that individuals and businesses can minimize losses by transferring and sharing
risks, to the application of the law of large numbers. Various principles also
determine why some risks of loss are insurable whereas others are not.
Questions and Answers
LaTonya purchases a house from John. She borrows $75,000 from
First City Bank that, along with her $25,000 down payment, equals the $100,000
purchase price of the home. Who has an insurable interest in this home? Choose
all that apply.
LaTonya's son, who would like to inherit the home some day
First City Bank
Highpoint Industries has an automatic sprinkler system installed in its office
building. This is an example of which risk management method?
Benson Pharmaceutical Company decides not to manufacture a new
drug after determining that it has serious potential side effects. This is an
example of which risk management method?
Because she has always been in good health, Donna decides to
cancel her health insurance policy. This is an example of which risk management
The tread on Alan's automobile tires is very thin. This is an
example of what type of hazard?
Which of the following is a hazard as opposed to a peril?
A contract is a legal agreement
between two or more competent parties that promises a certain performance in
exchange for a certain consideration. When an insurance company agrees to pay
for an insured's losses in exchange...
Questions: 7 | Attempts: 8122 | Last updated: Dec 26, 2012
Which of the following is not a requirement for forming a valid contract?
This quizzes you on how well you learned about car insurance!
Questions: 14 | Attempts: 5688 | Last updated: Oct 22, 2020
What is: Insurance that pays for the cost of injuries to people involved in an accident and protects the insured against financial loss from lawsuits and other legal expenses incurred as a result of an accident. There are two limits: the maximum that will be paid to any one person and the maximum for each accident.