C81 Part 1

Question 1

Insurance

Answer 1

Contract in which one party (the insurer) for monetary consideration agrees to reimburse another, the insured, for loss or liability for a loss on a defines subject caused by specific hazards or perils

Question 2

Risk

Answer 2

Chance if loss (specifically the possible loss or destruction if property or the possible incurring of a liability. sometimes reffered to as the subject of an insurance contract

Question 3

Psefulative Risk

Answer 3

Insurance term for a situation where the possibility of either a financial loss or gain exists, such as in purchasing shares or betting on horses. not insurative unlike pure risk

Question 4

Pure Risk

Answer 4

Siaution involving a chance of a loss, or no loss but no chance of gain

Question 5

Insurer

Answer 5

The insurance company that undertakes to indepemnity for losses and preform other insurance related operatiions

Question 6

Peril

Answer 6

The event that caused a loss; covered by the policy; for example; fire, windstorm

Question 7

Burglary

Answer 7

Unlawful removal of property from premises involving visible forcable entry

Question 8

Robbery

Answer 8

Unlawfully taking anothers proprty, in the persons presence, by violence or the threat of violence

Question 9

Theft

Answer 9

The wrongful taking of the property of another. it is a broad term and includes larceny, pilfering, holdup, robbery snd pickpocketing

Question 10

Fire

Answer 10

Combustion manifested in light, flame and heat for useful purposes or destrutive puroses

Question 11

Negligence

Answer 11

Failure to use the degree of care expected from s reasonable and prudent person

Question 12

Hazard

Answer 12

1) A tisk or probability that the event inshrer against might occur
2) A condition that wngenders or increases the chance of loss

Question 13

Physical Hazard

Answer 13

A hazard arising from the physical condition or characteristics of the object that is insured

Question 14

Moral Hazard

Answer 14

A hazard arising from the character, interest, havits and lack of integrity of the insured or person convicted

Question 15

Underwriter

Answer 15

1) Insurancr company/group that underwrites or insures a particular risk
2) The individual within an insurance company whose responsibility it is to accept or reject buisness in the particular line in which she specializes (in this way) choose the risks her principals are prepared to underwrite

Question 16

Morale Hazard

Answer 16

A hazard that is based on the insured attitude toward the insured belongings. This hazard exists when the insured no longer cares about the possessions because they are insured

Question 17

Proximate Cause

Answer 17

A cause that, in natural an continuous sequence unbroken by any nee and independent cause, produces an event and without which the event would not have happened

Question 18

Remote Cause

Answer 18

cause that is not the proximate cause of loss & is seperate from the proximate cause in a chin of events leading to a loss

Question 19

Immediate cause

Answer 19

A cause that is not the proximate cause of a loss but is the last link in a chain of events