Chapters 1 part 1

What is your Risk

100

Chance of a Loss is?

Risk

200

Risk that is insurable

Pure Risk

300

Gambling, Stock market, and Crypto are examples of what type of Risk

Speculative Risk

400

Daisy chained power strips is an example of a?

Hazard

500

A large number of homes with comparable risk exposure are referred to as?

Homogeneous Units

What had happened was...

100

Fire, Theft, and wind damage are examples of 

Perils

200

What are the three types of Hazards?

Moral, Morale, and Physical

300

Burning my business building is what type of hazard?

Moral

400

I store my gas cans in my garage next to my oil furnace. I am a ___________ hazard

Morale

500

Tree that has fallen into the road around a blind turn is a ___________ Hazard

Physical

Be my STARR

100

What does STARR stand for

Sharing

Transfer

Avoidance

Reduction

Retention

200

I maintain a bank account trust to pay for losses. This is an example of?

Retention

300

I live in Florida. I purchase hurricane windows and have a reinforced roof with clips. I am completing Risk ______.

Reduction

400

Purchasing an Insurance policy is an example of?

Transfer

500

Myself and 30 of my neighbors put together a fund with 5 Million dollars to cover losses. This is an example of Risk __________.

Sharing

To insure or not to...

100

Under this "law" we can understand the likely actions of a large group of people and insure them accurately

Law of Large Numbers

200

When you live in a wildfire zone. The risk of wildfire is higher which creates an risk imbalance causing the cost of the insurance to increase. This principle is known as?

Adverse selection

300

An insurance company sells a specific risk/portion of risk to another company. This is known as purchasing_________.

Reinsurance

400

Citizens insurance of Florida is an example of a _________ insurer

Governmental 

500

A insurance company that is own by it's policy holders is?

Mutual Ins Company

Who am I

100

I am an insurance company that is operating under the laws of the state they are operating in. I am a _________ Insurer

Domestic

200

I am an insurer operating in the USA but not organized in the state you are in. I am a ___________ Insurer

Foreign

300

I am an insurer. But I am not organized under laws of the USA. I am a ____________ Insurer

Alien

400

I am authorized to do business as an insurer in your state. I am an ________ insurer. 

Admitted

500

I am the department of an insurance company that determines what risk levels we will take and how we will price them. I am the _______________ Department. 

Underwriting