Property Unit

Question 1

what is risk? EXAM

Answer 1

Risk is chance of loss
we have two risks:
1) pure risk only chance of loss & insurable like fire
2) speculative risk is chance of loss or profit & uninsurable like new businesses

Question 2

Insurable risk?

Answer 2

> Personal: death, physical
property: direct damage like fire to property
indirect damage like consequential cause
Liability: a person’s conduct

Question 3

What is a peril? EXAM

Answer 3

peril is an even t that my cause a loss to occur

like: fire - negligence - riot - theft

Question 4

What is a Hazard? EXAM

Answer 4

a hazard is a condition that may cause a peril to occur or make the loss more severe
we have 2 hazard group:
Physical hazard ( anything you can touch) can be inspected and be fixed like slippery floor, loose tiles

Moral hazard ( anything you cannot touch) is hard to detect but increase the probability or severity of loss

Question 5

What is Proximate cause? EXAM

Answer 5

The proximate cause is a immediate and effective cause of the loss, which in a chain of circumstances leads naturally and directly to the loss, NOT NECESSARY THE LAST EVENT BEFORE THE OCCURRENCE.

Question 6

What insurance means?

Answer 6

Insurance means undertaking by one person or company to INDEMNIFY another person against loss or liability of loss