Cram Sheet 1 Flashcards
1
Q
Speculative Rise
A
Chance of loss of gain. Not Insurable
2
Q
Pure Risk
A
Only chance for loss. Will Insure
3
Q
Exposure
A
Roses for which the insurance company will be liable
4
Q
Peril
A
Cause of a loss
5
Q
Physical
A
Hazard can be see
6
Q
Moral
A
Belief that intentionally causing a loss is acceptable
7
Q
Morale
A
Carelessness
8
Q
STARR
A
Sharing, Transfer, Retention, Reduction
9
Q
Law of Large numbers
A
Larger the group the more accurate losses can be predicted
10
Q
Adverse Selection
A
Risk with grater than average chance of loss
11
Q
Stock- Insurer
A
Owned by stockhodlers and shareholders, if company makes money a taxable dividend can be paid
12
Q
Mutual Insurer
A
Owned by Policyholders
13
Q
Self Insurance
A
Pays on claims
14
Q
Residual Market
A
Insurance from state or federal government
15
Q
Certificate of Authority
A
State license for Insurance Company
