Licentiate Examination - IC 01 - Principles of Insurance Exam - Important Points
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Physical Hazard refers to the Characteristics, and qualities of the Subject-Matter, which is proposed to the insured.
Moral Hazard refers to the Character of the Person, who is approaching the Insurance Company for Insurance.
The Actual Loss, arising out of a Peril-Striking, includes the Costs of (a) Repair, Replacement, or Reinstatement; and (b) Consequential Losses, until Repair, Replacement or Reinstatement.
Consequential losses - Expenses for cleaning up and removal of debris, Loss of rent, production, revenue and profits until normalcy is restored, Possible liability losses for third party injuries
Ways of managing the Risks, include; Prevention of Risk, Reduction of Risk, Retaining the Risk, Transferring the Risk.
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