NC Personal Lines Licensing Exam Part 1 Terms and Concepts Q&A Latest Update

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NC Personal Lines Licensing Exam Part 1 Terms and Concepts | Q&A Latest 2025/2026 | 100% PASS Risk - Answer -The uncertainty or chance of a loss occurring. Pure- Insurable, only a chance of loss, no financial gain Speculative- Not insurable, chance of loss or gain (ex: gambling) Hazard - Answer -Conditions or situations that increase the probability of an insured loss occurring Types: Physical (individual characteristics increase chances of the cause of loss) Moral (lying on application) Morale (indifference) Peril - Answer -The cause of a loss (loss is the basis of a claim) Economic Loss - Answer -The estimated total cost (both insured and uninsured) of an accident. Indemnity - Answer -Reimbursement to the extent of the financial loss, not profit Insurable Interest - Answer -The insured must be in a position to lose financially if a covered loss occurs, must exist at the time of the loss