TN Property and Casualty Exam Questions and Answers (Solved Papers) Insurance - Correct Answers ✅Social device used for transferring risk from individuals or business to an insurance company Law of Large Numbers - Correct Answers ✅The larger the group the less uncertainty Insurable Interest - Correct Answers ✅must have a legitimate interest in the property/subject that is to be insured risk - Correct Answers ✅Uncertainty or chance of possible loss Property risk are called - Correct Answers ✅perils Casualty risk are called - Correct Answers ✅Liability and Accident Losses What kind of risk are insurable - Correct Answers ✅Pure risk What are speculative risk? - Correct Answers ✅provide the chance of a gain and are NOT insurable. Example: gambing 1 / 4
TN Property and Casualty Exam Questions and Answers (Solved Papers) Hazard - Correct Answers ✅Anything that would increase the likelihood that a loss might occur or increase the seriousness of the loss What are the three types of Hazards - Correct Answers ✅1) Physical 2)Moral 3)Morale Physical Hazard - Correct Answers ✅Structural, material or proximity to Moral Hazard - Correct Answers ✅Has to do with the insureds habits (dishonest) Morale Hazards - Correct Answers ✅The insureds carelessness Peril - Correct Answers ✅Cause of a possible loss What are examples of a peril - Correct Answers ✅Flood Fire Accident Explosion 2 / 4
TN Property and Casualty Exam Questions and Answers (Solved Papers) Loss - Correct Answers ✅Decrease in value, Property, quality of life or liability owed What are the two types of losses - Correct Answers ✅Direct indirect Direct Loss - Correct Answers ✅Actual Physical damage to the property Indirect loss- - Correct Answers ✅Loss resulting from a peril but not directly Actual Cash Value (ACV) - Correct Answers ✅Replacement cost (cost new)-less depreciation Replacement Cost - Correct Answers ✅Cost new ( no deduction for deprication) Market Value - Correct Answers ✅What it can be sold for at the time of loss Stated Value - Correct Answers ✅Value that meets coinsurance value 3 / 4
TN Property and Casualty Exam Questions and Answers (Solved Papers) Salvage value - Correct Answers ✅Insurer takes damaged property after payment for a total loss and sells it to reduce their loss Proximate Clause - Correct Answers ✅Resulting cause of loss or damage. The unbroken chain of cause and edict between the occurrence of an insured peril or a negligent act resulting in injury or damage Decuctible - Correct Answers ✅The dollar amount that must be paid by the insured before any benefits are payable by the insurer.Standard Deductible for Homeowners - Correct Answers
✅$250
Standard Deductible for commercial Property - Correct Answers ✅$250 What are the 4 reasons for a deductible - Correct Answers ✅1) To keep premiums affordable and reduce small claims 2) To increase profits of company 3) To make premiums excessive 4) increase the number insured
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