For each item or event in the table below, select the best description/explanation from the following list and enter the corresponding number in the table. Provide a brief explanation for each answer

1.insurable interest

2.morale hazard

3.moral hazard

4.loss control

5.underwriting

6.law of large number

7.indemnification

8.pooling

9.adverse selection

10.peril

11.pure risk

12.contract of adhesion

1)

I have my 10-year-old Ford vehicle insured with a standard auto policy and my policy expires on April 30^th of this year. I sell the Ford on April 23^rd to my neighbor, but never remove the Ford from my insurance policy. The Ford is damages by a hail storm in my neighbor's driveway on April 28^th. I file a claim with my insurance company, but they refuse to pay.

2)

My wife has a very expensive collection of jewelry that she used to keep In a safety deposit box at the bank, only taking a piece out once in a while to wear on special occasions. A month ago I purchased a personal articles policy that covers any damage or theft of the jewelry with no deductible. Now my wife wears the jewelry all the time and even takes it on vacation with us, leaving the pieces she is not wearing in the hotel room drawer.

3)

Your homeowner's policy states that damage to the foundation of the house caused by "ground water" is not covered. However, "ground water" is not defined in the policy. Your neighbor's underground waterpipes burst, causing underground flooding that damages your foundation. The insurance company refuses to pay due to the "ground water" exclusion. You argue that "ground water" implies natural occurring water and should not include a man-made problem. You win in court.

4)

An employee slips and falls on Sunday while washing his car. He hurts his back, but manages to get to work on Monday morning, and then pretends to fall. The company's workers' compensation insurance covers his medical bills.

5)

This past year I noticed my eyesight at night is getting worse and I am worried because I have been assigned night classes in both Johnstown and Monroeville that will increase my nighttime driving dramatically. I'm able to renew my auto policy, however, at my current rate because my insurance company is unaware of the increased risk.