P&C License Exam – Missouri Exam
Questions And Answers
Moral Hazard - - correct answer ✅dishonesty or character defects
in an individual that increase the chance of loss, ex: lying on app or
faking a loss
Morale Hazard - - correct answer ✅carelessness or indifference to
a loss because of the existence of insurance, ex: leaving door
unlocked
Parts of an Insurance Policy (5 Sections) - - correct answer ✅D-I-C-
E-E
Declarations
Insuring Agreements
Conditions
Endorsements
Exclusions
Declarations Section - - correct answer ✅-who what when and
where
-name, location of residence, policy period, coverages, limits of
liability, deductibles
,P&C License Exam – Missouri Exam
Questions And Answers
Insuring Agreement Section - - correct answer ✅-describes the
covered perils
-summarizes major promises of the policy
Conditions Section - - correct answer ✅-policy provisions
-rules of conduct
-duties
-obligations
Endorsements Section - - correct answer ✅-add, modify, or take
away coverage
The self retention limit - - correct answer ✅the amt of a loss that
the insured must cover out of pocket, acts as a deductible unless
the umbrella policy covers the excess liabilities
Insurance uses the risk MGT method of ________ to spread the risk
among insureds - - correct answer ✅Transfer
The tendency for higher-risk individuals to get and keep insurance.
This can be avoided using the underwriting process, where
, P&C License Exam – Missouri Exam
Questions And Answers
insurance companies can identify high risk individuals. - - correct
answer ✅Adverse Selection
Mutual Insurer - - correct answer ✅An insurer that is owned by its
policyholders, elects its own board of directors, and provides
insurance to them. The policyowners participate in the operating
results of the company so they are "PARTICIPATING POLICIES"
Fraternal Benefit Societies - - correct answer ✅Insurance
companies formed to provide insurance only for members of an
affiliated lodge, religious organization, or fraternal organization
Reciprocal Insurers - - correct answer ✅unincorporated groups of
people that provide insurance under a contract. Members are
called subscribers and each subscriber is assessed an equal amt to
pay each claim by an attorney-in-fact.
Lloyd's Association - - correct answer ✅group of individuals who
share the risk and the exposure
- known for insuring unusual risks like athletes arms or celebs hair
Questions And Answers
Moral Hazard - - correct answer ✅dishonesty or character defects
in an individual that increase the chance of loss, ex: lying on app or
faking a loss
Morale Hazard - - correct answer ✅carelessness or indifference to
a loss because of the existence of insurance, ex: leaving door
unlocked
Parts of an Insurance Policy (5 Sections) - - correct answer ✅D-I-C-
E-E
Declarations
Insuring Agreements
Conditions
Endorsements
Exclusions
Declarations Section - - correct answer ✅-who what when and
where
-name, location of residence, policy period, coverages, limits of
liability, deductibles
,P&C License Exam – Missouri Exam
Questions And Answers
Insuring Agreement Section - - correct answer ✅-describes the
covered perils
-summarizes major promises of the policy
Conditions Section - - correct answer ✅-policy provisions
-rules of conduct
-duties
-obligations
Endorsements Section - - correct answer ✅-add, modify, or take
away coverage
The self retention limit - - correct answer ✅the amt of a loss that
the insured must cover out of pocket, acts as a deductible unless
the umbrella policy covers the excess liabilities
Insurance uses the risk MGT method of ________ to spread the risk
among insureds - - correct answer ✅Transfer
The tendency for higher-risk individuals to get and keep insurance.
This can be avoided using the underwriting process, where
, P&C License Exam – Missouri Exam
Questions And Answers
insurance companies can identify high risk individuals. - - correct
answer ✅Adverse Selection
Mutual Insurer - - correct answer ✅An insurer that is owned by its
policyholders, elects its own board of directors, and provides
insurance to them. The policyowners participate in the operating
results of the company so they are "PARTICIPATING POLICIES"
Fraternal Benefit Societies - - correct answer ✅Insurance
companies formed to provide insurance only for members of an
affiliated lodge, religious organization, or fraternal organization
Reciprocal Insurers - - correct answer ✅unincorporated groups of
people that provide insurance under a contract. Members are
called subscribers and each subscriber is assessed an equal amt to
pay each claim by an attorney-in-fact.
Lloyd's Association - - correct answer ✅group of individuals who
share the risk and the exposure
- known for insuring unusual risks like athletes arms or celebs hair
