P&C Chapter 1 Test with all Correct & 100% Verified
Answers |Latest Update |Already Graded A+
The uncertainty of loss from fire, wind, or hail is a type of: ✔Correct Answer-Pure risk
Rates based on the underwriter's experience describes which rating method? ✔Correct
Answer-Judgment rating
Under the Fair Credit Reporting Act, if a consumer reports to a consumer reporting agency that
they are a victim of fraud, the agency must put a fraud alert on the consumer's file for at least
how long? ✔Correct Answer-90 days
Which of the following is not an element of an insurable risk? ✔Correct Answer-Catastrophic
perils
The most common means of managing risk is: ✔Correct Answer-Purchasing insurance
Agents have all of the following responsibilities, except: ✔Correct Answer-Issue insurance
policies
If a mutual insurer has a surplus at the end of the year after paying all covered claims and
operating expenses, the surplus may be returned as dividends to the company's: ✔Correct
Answer-Policyholders
An insurer with capital that is divided into shares, and is owned by shareholders, is considered
a: ✔Correct Answer-Stock insurance company
If the public or a third party is falsely led to believe that an agent is able to perform a certain
duty, this is known as the producer's: ✔Correct Answer-Apparent authority
Which of the following best describes a surplus lines broker? ✔Correct Answer-A surplus lines
broker places risks with non-admitted insurers when coverage cannot be placed with admitted
carriers
The basis for an insurance claim made by a policyholder is a: ✔Correct Answer-Loss
The purpose of the Fair Credit Reporting Act is to do all of the following, except: ✔Correct
Answer-Allow insurers to use consumer credit reports as the only rating factor
Which term is defined as the possibility of loss? ✔Correct Answer-Risk
Answers |Latest Update |Already Graded A+
The uncertainty of loss from fire, wind, or hail is a type of: ✔Correct Answer-Pure risk
Rates based on the underwriter's experience describes which rating method? ✔Correct
Answer-Judgment rating
Under the Fair Credit Reporting Act, if a consumer reports to a consumer reporting agency that
they are a victim of fraud, the agency must put a fraud alert on the consumer's file for at least
how long? ✔Correct Answer-90 days
Which of the following is not an element of an insurable risk? ✔Correct Answer-Catastrophic
perils
The most common means of managing risk is: ✔Correct Answer-Purchasing insurance
Agents have all of the following responsibilities, except: ✔Correct Answer-Issue insurance
policies
If a mutual insurer has a surplus at the end of the year after paying all covered claims and
operating expenses, the surplus may be returned as dividends to the company's: ✔Correct
Answer-Policyholders
An insurer with capital that is divided into shares, and is owned by shareholders, is considered
a: ✔Correct Answer-Stock insurance company
If the public or a third party is falsely led to believe that an agent is able to perform a certain
duty, this is known as the producer's: ✔Correct Answer-Apparent authority
Which of the following best describes a surplus lines broker? ✔Correct Answer-A surplus lines
broker places risks with non-admitted insurers when coverage cannot be placed with admitted
carriers
The basis for an insurance claim made by a policyholder is a: ✔Correct Answer-Loss
The purpose of the Fair Credit Reporting Act is to do all of the following, except: ✔Correct
Answer-Allow insurers to use consumer credit reports as the only rating factor
Which term is defined as the possibility of loss? ✔Correct Answer-Risk
