Insurance and Risk Quiz
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Questions and Answers

What is insurance the transfer of?

  • Hazards
  • Risk (correct)
  • Perils
  • Loss

    • What are the two types of risk?

  • Big Risk & Small Risk
  • Pure Risk & Speculative Risk (correct)
  • Pure Risk & Unsafe Risk
  • General Risk & Speculative Risk

    • What is a peril?

  • Uncertainty
  • Hazard
  • Loss
  • Risk (correct)

    • Which of the following is NOT an example of a peril?

    <p>Wet sidewalk</p> Signup and view all the answers

    Which one of the following is an example of a hazard?

    <p>Slippery floor</p> Signup and view all the answers

    What is an example of a moral hazard?

    <p>Lying on the insurance application</p> Signup and view all the answers

    Who owns certificate of authorization stock companies?

    <p>Shareholders</p> Signup and view all the answers

    What does a domestic insurer refer to?

    <p>Domestic</p> Signup and view all the answers

    Where are foreign insurers situated?

    <p>Not headquartered and selling</p> Signup and view all the answers

    What are the three types of agents of authority?

    <p>Express, implied &amp; apparent</p> Signup and view all the answers

    What does consideration mean in a legal contract?

    <p>Both parties bring something of value</p> Signup and view all the answers

    Who does a competent party exclude?

    <p>A 12-year-old girl</p> Signup and view all the answers

    Which term refers to unequal exchange?

    <p>Aleatory</p> Signup and view all the answers

    What is meant by conditional in an insurance contract?

    <p>Both parties have duties they need to follow</p> Signup and view all the answers

    Which definition describes the term representation best?

    <p>Statements that are believed to be true but are not guaranteed to be true</p> Signup and view all the answers

    Where can you not have an insurable interest?

    <p>Friend</p> Signup and view all the answers

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