MINNESOTA PROPERTY AND CASUALTY EXAM 2024 NEWEST
EXAM 2 VERSIONS (VERSION A AND B) COMPLETE 400
QUESTIONS WITH DETAILED VERIFIED ANSWERS (100%
CORRECT ANSWERS) / ALREADY GRADED A+ // BRAND NEW!!
moral hazard - ANSWER: dishonesty
morale hazard - ANSWER: carelessness
law of large numbers - ANSWER: the larger the group, the more accurately losses can
be predicted
adverse selection - ANSWER: risks that have a greater than average chance of loss
stock insurer - ANSWER: business formed as a corporation and owned by its
stockholders
mutual insurer - ANSWER: owned by its policyholders(customers), all known as
policy owners
fraternal benefit societies - ANSWER: exist for the benefit of their members and offer
insurance as one of the benefits of membership
reciprocal insurer - ANSWER: unincorporated groups of people that agree to insure
each others losses under a contract
domestic - ANSWER: state where a company is incorporated
foreign - ANSWER: company is incorporated in another state or U.S. territory
alien - ANSWER: company is incorporated in another country
fiduciary - ANSWER: person in a position of financial trust
consideration - ANSWER: exchange of value
adhesion - ANSWER: glue
representation - ANSWER: believed to be true
misrepresentation - ANSWER: info given that is not true but would NOT affect the
insurance company's decision
material misrepresentation - ANSWER: info given that is not true and DOES affect
insurance company's decision
, warranty - ANSWER: promise
property insurance - ANSWER: covers "my stuff", first party loss
casualty insurance - ANSWER: the "other guy", third party loss
declarations - ANSWER: who, what, when, where, and how much
insuring agreement - ANSWER: promise to pay and perils covered
conditions - ANSWER: rules for the policy
endorsements - ANSWER: changes to the original policy
exclusions - ANSWER: items not covered
named insured - ANSWER: listed on the declarations to which the policy is issued
first-named insured - ANSWER: first on the declarations
insureds - ANSWER: by definition
additional insured - ANSWER: added by endorsement
duties after loss - ANSWER: protect property from further damage
underwriting - ANSWER: process of evaluating risk
application - ANSWER: primary source of underwriting information
binder - ANSWER: temporary oral or written statement made by agent that gives the
insured immediate coverage for a specified time
real property - ANSWER: buildings
personal property - ANSWER: moveable contents
specific(scheduled) covered property - ANSWER: detailed list of covered
items(engagement ring)
blanket covered property - ANSWER: no detailed list(inventory)
basic perils - ANSWER: fire, lightning, removal
extended coverage(EC) perils - ANSWER: WCSHAVVER, V&MM
EXAM 2 VERSIONS (VERSION A AND B) COMPLETE 400
QUESTIONS WITH DETAILED VERIFIED ANSWERS (100%
CORRECT ANSWERS) / ALREADY GRADED A+ // BRAND NEW!!
moral hazard - ANSWER: dishonesty
morale hazard - ANSWER: carelessness
law of large numbers - ANSWER: the larger the group, the more accurately losses can
be predicted
adverse selection - ANSWER: risks that have a greater than average chance of loss
stock insurer - ANSWER: business formed as a corporation and owned by its
stockholders
mutual insurer - ANSWER: owned by its policyholders(customers), all known as
policy owners
fraternal benefit societies - ANSWER: exist for the benefit of their members and offer
insurance as one of the benefits of membership
reciprocal insurer - ANSWER: unincorporated groups of people that agree to insure
each others losses under a contract
domestic - ANSWER: state where a company is incorporated
foreign - ANSWER: company is incorporated in another state or U.S. territory
alien - ANSWER: company is incorporated in another country
fiduciary - ANSWER: person in a position of financial trust
consideration - ANSWER: exchange of value
adhesion - ANSWER: glue
representation - ANSWER: believed to be true
misrepresentation - ANSWER: info given that is not true but would NOT affect the
insurance company's decision
material misrepresentation - ANSWER: info given that is not true and DOES affect
insurance company's decision
, warranty - ANSWER: promise
property insurance - ANSWER: covers "my stuff", first party loss
casualty insurance - ANSWER: the "other guy", third party loss
declarations - ANSWER: who, what, when, where, and how much
insuring agreement - ANSWER: promise to pay and perils covered
conditions - ANSWER: rules for the policy
endorsements - ANSWER: changes to the original policy
exclusions - ANSWER: items not covered
named insured - ANSWER: listed on the declarations to which the policy is issued
first-named insured - ANSWER: first on the declarations
insureds - ANSWER: by definition
additional insured - ANSWER: added by endorsement
duties after loss - ANSWER: protect property from further damage
underwriting - ANSWER: process of evaluating risk
application - ANSWER: primary source of underwriting information
binder - ANSWER: temporary oral or written statement made by agent that gives the
insured immediate coverage for a specified time
real property - ANSWER: buildings
personal property - ANSWER: moveable contents
specific(scheduled) covered property - ANSWER: detailed list of covered
items(engagement ring)
blanket covered property - ANSWER: no detailed list(inventory)
basic perils - ANSWER: fire, lightning, removal
extended coverage(EC) perils - ANSWER: WCSHAVVER, V&MM
