key concept

Question 1

risk with a chance of loss, no financial gain, but insurable

Answer 1

pure

Question 2

types of risk

Answer 2

pure speculative

Question 3

peril

Answer 3

cause of loss

Question 4

transfer of loss; protection

Answer 4

insurance

Question 5

insurance =

Answer 5

transfer of risk

Question 6

cause of loss

Answer 6

peril

Question 7

pure risk

Answer 7

chance of loss only no financial gain insurable

Question 8

individual characteristics that increases the chances of the cause of loss

Answer 8

physical hazards

Question 9

relationship of perils to loss

Answer 9

hazards (drinking) to peril (car accident) to loss (death) to insurance (to beneficiary)

Question 10

types of hazards

Answer 10

physical moral morale

Question 11

risk with a chance of loss or gain, financial gain, not insurable

Answer 11

speculative risk

Question 12

moral hazards

Answer 12

tendencies toward increased risk; dishonest on application

Question 13

tendencies toward increased risk

Answer 13

moral hazards

Question 14

physical hazards

Answer 14

individual characteristics that increases the chances of the cause of loss; smoking

Question 15

something that increases probability of having a loss

Answer 15

hazard

Question 16

transfer of risk =

Answer 16

insurance

Question 17

hazard

Answer 17

something that increases probability of having a loss

Question 18

morale hazards

Answer 18

state of mind that causes indifference towards loss; drinking and driving because who cares I’m covered

Question 19

state of mind that causes indifference towards loss

Answer 19

morale hazards

Question 20

reduction of value; basis for a claim

Answer 20

loss

Question 21

speculative risk

Answer 21

chance of loss or gain; gamble not insurable

Question 22

loss

Answer 22

reduction of value; basis for a claim