Insurance Risk Quiz

Choose a study mode

Play Quiz

Study Flashcards

Spaced Repetition

Chat to Lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What is the definition of speculative risk?

The potential for losses where there is no viable opportunity for any gain
The possibility of loss that might directly affect an individual, such as injury or death
The possibility of something going wrong that would expose your business to financial damages
Price uncertainty and the potential for losses in investments (correct)

What are the outcomes of speculative risk?

A loss
A gain
Nothing or a loss
Nothing, a loss, or a gain (correct)

What is the most important type of risk for homeowners insurance purposes?

Property risk (correct)
Personal risk
Speculative risk
Pure risk

What is the definition of pure risk?

The potential for losses where there is no viable opportunity for any gain (D) Signup and view all the answers

What is the definition of a peril?

The direct cause of a loss (D) Signup and view all the answers

Which type of hazard results from unintentional carelessness or laziness?

Morale hazard (A) Signup and view all the answers

What is the difference between a moral hazard and a morale hazard?

Intent (C) Signup and view all the answers

Which type of insurance covers only the perils listed in the policy?

Named perils insurance (C) Signup and view all the answers

What does a physical hazard do?

Increases the likelihood of a loss occurring due to inadequacies in the condition, structure, or operation of an insured property (D) Signup and view all the answers