Idaho Insurance Licensing Property and Casualty Exam Study Guide with Complete Solutions 100% Verified 2024 Insurance - Correct Answer Is a contract win which one party agrees to indemnify the insured party against loss,damage, or liabilty.Insurance Transfers - Correct Answer The risk of loss from an individual or business entity to an insurance company which in turn spreads the costs of unexpected losses to many individuals.Insurance Transaction - Correct Answer Includes solicitation, negotiations, sale, and advising etc Risk - Correct Answer the uncertainty or chance of loss Pure risk - Correct Answer Refers to situations that can only result in a loss or no change. Always accepting in companies.Speculative Risk - Correct Answer involves the opportunity for either loss or gain. Not Insurable.Hazard - Correct Answer are conditions or situations that increase the probability of an insured loss occurring.Physical Hazard - Correct Answer Are individual characteristics that increase the chances of the cause of loss. Exist because of physical conditions like medical history, birth conditions, or blindness Moral Hazard - Correct Answer Tendencies towards increased risks based on character and reputation.Refers to applicants who lie on applications or have fraudulent insurance claims Morale Hazard - Correct Answer Hazard arising out of an insured's indifference to loss because of the existence of insurance.Perils - Correct Answer are the causes of loss insured against in an insurance policy. 1 / 2
Loss - Correct Answer Is defined as the reduction, decrease, or disappearance of value of the person or property. Insured in a policy, caused by a named peril.Sharing - Correct Answer Is a method of dealing with risk for a group of individual persons or businesses with the same or similar exposure to loss to share the losses that occur within each group transfer - Correct Answer Most effective way to handle risk so loss is borne by another party Avoidance - Correct Answer Eliminating exposure to a loss Retention - Correct Answer Planned assumption of risk by an insured through deductibles, co-pays, or self insurance. Accepting responsibility before insurance company pays Reduction - Correct Answer Attempt to lessen the possibility of severity of a loss. Examples installing smoke detectors or having an annual physical Who is an Agent/Producer - Correct Answer Is an individual licensed to sell,solicit, or negotiate insurance contracts on behalf of the principal (insurer).Law of Agency - Correct Answer Defines relationship between the principal and the agent/acts of the agent/producer within the scope of authority are deemed to be the acts of the insurer Implied Authority - Correct Answer The authority that is not expressed or written into the contract, but which agent is assumed to have in order to transact bussiness Express Authority - Correct Answer The authority granted to an agent by means of the agent's written contract.Apparent Authority - Correct Answer Is the appearance or assumption of authority based on the actions, words, or deeds of the principal.
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