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KY Property and Casualty Exam Practice
Questions and Correct Answers/ Latest
Update / Already Graded
Which of the following creates an insurable interest?
Ans: House you own but have rented to a tenant, Car on which
you are still paying
What is the primary purpose of insurance?
Ans: Transferring risk
Which of the following is an insurable risk?
Ans: Hail damage to the roof of a car
Define peril in insurance terms.
Ans: The cause of loss
Explain a morale hazard.
Ans: Arises through an individual's carelessness or
irresponsible actions
All rights reserved © 2025/ 2026 |
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Identify the part that is NOT included in an insurance contract.
Ans: Floater
Why is an insurance contract considered a contract of indemnity?
Ans: Insured may collect no more than the amount required to
restore to pre-loss financial condition
Which element of a legal contract does an insurance premium
payment represent?
Ans: Consideration
Why is an insurance policy considered a unilateral contract?
Ans: Insurance company is the only party legally obligated to
perform
What constitutes an agreement to enter into a valid contract?
Ans: A specific offer by one party and acceptance by the other
A nonexclusive agent
Ans: Represents more than one insurance company
All rights reserved © 2025/ 2026 |
KY Property and Casualty Exam Practice
Questions and Correct Answers/ Latest
Update / Already Graded
Which of the following creates an insurable interest?
Ans: House you own but have rented to a tenant, Car on which
you are still paying
What is the primary purpose of insurance?
Ans: Transferring risk
Which of the following is an insurable risk?
Ans: Hail damage to the roof of a car
Define peril in insurance terms.
Ans: The cause of loss
Explain a morale hazard.
Ans: Arises through an individual's carelessness or
irresponsible actions
All rights reserved © 2025/ 2026 |
, Page |2
Identify the part that is NOT included in an insurance contract.
Ans: Floater
Why is an insurance contract considered a contract of indemnity?
Ans: Insured may collect no more than the amount required to
restore to pre-loss financial condition
Which element of a legal contract does an insurance premium
payment represent?
Ans: Consideration
Why is an insurance policy considered a unilateral contract?
Ans: Insurance company is the only party legally obligated to
perform
What constitutes an agreement to enter into a valid contract?
Ans: A specific offer by one party and acceptance by the other
A nonexclusive agent
Ans: Represents more than one insurance company
All rights reserved © 2025/ 2026 |
