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10 Cards in this Set
- Front
- Back
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Under The Dwelling '89 Policy the isured dwelling cannot have more than ___ roomers or boarders. |
5
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Definition of Insurance
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the transfer of the possibility of a loss (risk) to an insurance company, which in turn spreads the costs of unexpected losses to many individuals.
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Name the 2 types of risk
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1. Pure Risk
2. Speculative Risk |
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What Type of Risk is insurable
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Pure Risk |
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What is a Hazard?
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a condition or situation which creates or increases the probability of or extent of a probable loss froma peril. |
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What are the 3 types of hazards?
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1. Physical
2. Moral 3. Morale |
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What is a Physical Hazard
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A condition of the subject of insurance which creates or increases the chance of loss, such as structural defects, occupancy, poor housekeeping or location.
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What is a Moral Hazard?
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A dishonest predisposition on the part of an insured which increases the chance of loss. This could include an applicant who has been previously convicted of arson, falsifing an insurance claim, etc. |
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What is a Morale Hazard?
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Applicants who demonstrate a careless attitude that could increase the chance of loss that would be greater than otherwise be the case. indifference |
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What is a peril? |
The cause of a possible loss.
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