LOUISIANA PROPERTY & CASUALTY TEST - PSI &
EXAM FY CONSOLIDATED QUESTIONS AND
ELABORATE ANSWERS RECENT UPDATE 2024-2025
PASS GUARANTEE!!
QUESTION: Indemnity - ANSWER-In property and casualty and in medical-expense insurance, the
principle of making someone "whole" again after a loss by paying only for actual losses is called:
Contracts of adhesion - ANSWER-Because an insurer writes the policy language and the insured has little
or no control over the content, any ambiguity in the wording is usually resolved in favor of the insured.
Because the design and wording of a policy are in the hands of the insurer, insurance policies are said to
be:
QUESTION: Risk - ANSWER-The uncertainty about loss that exists whenever more than one outcome is
possible is called:
QUESTION: Express Authority - ANSWER-The authority of an insurance producer that is spelled out in
the written words of the agency contract between the producer and the insurer is:
,QUESTION: The possibility of loss only - ANSWER-Insurable risks must involve:
QUESTION: The predictions become more accurate as the number of units being considered increases -
ANSWER-The Law of Large Numbers states that:
QUESTION: Consideration - ANSWER-In the formation of a legal contract, each party must give
something of value. Under contract law, this is referred to as:
QUESTION: At the time of application and at the time of loss - ANSWER-In the property and casualty
insurance field, "insurable interest" must exist:
QUESTION: Mutual - ANSWER-In which company may policyholders receive policy dividends when there
is a profit?
QUESTION: Reinsurer - ANSWER-If an insurance company transfers part of their risk to another insurer,
that other insurer is known as a?
QUESTION: Stock - ANSWER-In which company may stockholders share in the profits and losses of the
insurer?
QUESTION: Adhesion - ANSWER-An applicant for insurance must accept the entire policy as written or
none of it under the Doctrine of __________.
,QUESTION: Representations - ANSWER-Statements provided by an applicant for insurance are
considered to be:
QUESTION: Binder - ANSWER-A property and casualty insurance producer frequently has the authority
to provide temporary insurance coverage known as a:
QUESTION: Transferring risk - ANSWER-Insurance is a means of:
QUESTION: General agent - ANSWER-Some producers supervise all of an insurance company's business
within a specified territory. These producers appoint other producers, supervise their business, and
receive an overriding commission on that business. What is the formal name for this type of producer?
QUESTION: Concealment - ANSWER-Failure to disclose known facts when filling out an insurance
application is an act of:
QUESTION: Waiver - ANSWER-Under contract law, the actions by a party may intentionally and
voluntarily give up a known right. When this occurs, it is known as:
QUESTION: Reciprocal insurer - ANSWER-What is the name of the type of insurer consisting of an
unincorporated group of persons who provide insurance among themselves through an inter-exchange
of indemnity agreements?
QUESTION: One of the parties is not competent - ANSWER-Which of the following would cause a
contract not to be enforceable:
, QUESTION: Domestic Insurer - ANSWER-An insurer incorporated under the laws of the state in which it
is operating is considered to be a(n):
QUESTION: Warranty - ANSWER-When a property insurance applicant makes a statement on an
application that becomes part of the contract and includes a promise by the insured, the statement is
considered to be a:
QUESTION: The Insurance Company - ANSWER-A producer is a representative of:
QUESTION: Unilateral - ANSWER-A contract where only one party, the insurer, makes an enforceable
promise is said to be:
QUESTION: Mutual company - ANSWER-An insurance company owned by its policyholders, who receive
a return of unused premiums in the form of policy dividends, is a(n):
QUESTION: Acts of the insurer may lead the public to believe the producer has - ANSWER-Apparent
authority of an insurance producer is the authority:
QUESTION: It is a form of gambling because it may or may not pay off - ANSWER-All of the following are
true about "insurance" EXCEPT:
EXAM FY CONSOLIDATED QUESTIONS AND
ELABORATE ANSWERS RECENT UPDATE 2024-2025
PASS GUARANTEE!!
QUESTION: Indemnity - ANSWER-In property and casualty and in medical-expense insurance, the
principle of making someone "whole" again after a loss by paying only for actual losses is called:
Contracts of adhesion - ANSWER-Because an insurer writes the policy language and the insured has little
or no control over the content, any ambiguity in the wording is usually resolved in favor of the insured.
Because the design and wording of a policy are in the hands of the insurer, insurance policies are said to
be:
QUESTION: Risk - ANSWER-The uncertainty about loss that exists whenever more than one outcome is
possible is called:
QUESTION: Express Authority - ANSWER-The authority of an insurance producer that is spelled out in
the written words of the agency contract between the producer and the insurer is:
,QUESTION: The possibility of loss only - ANSWER-Insurable risks must involve:
QUESTION: The predictions become more accurate as the number of units being considered increases -
ANSWER-The Law of Large Numbers states that:
QUESTION: Consideration - ANSWER-In the formation of a legal contract, each party must give
something of value. Under contract law, this is referred to as:
QUESTION: At the time of application and at the time of loss - ANSWER-In the property and casualty
insurance field, "insurable interest" must exist:
QUESTION: Mutual - ANSWER-In which company may policyholders receive policy dividends when there
is a profit?
QUESTION: Reinsurer - ANSWER-If an insurance company transfers part of their risk to another insurer,
that other insurer is known as a?
QUESTION: Stock - ANSWER-In which company may stockholders share in the profits and losses of the
insurer?
QUESTION: Adhesion - ANSWER-An applicant for insurance must accept the entire policy as written or
none of it under the Doctrine of __________.
,QUESTION: Representations - ANSWER-Statements provided by an applicant for insurance are
considered to be:
QUESTION: Binder - ANSWER-A property and casualty insurance producer frequently has the authority
to provide temporary insurance coverage known as a:
QUESTION: Transferring risk - ANSWER-Insurance is a means of:
QUESTION: General agent - ANSWER-Some producers supervise all of an insurance company's business
within a specified territory. These producers appoint other producers, supervise their business, and
receive an overriding commission on that business. What is the formal name for this type of producer?
QUESTION: Concealment - ANSWER-Failure to disclose known facts when filling out an insurance
application is an act of:
QUESTION: Waiver - ANSWER-Under contract law, the actions by a party may intentionally and
voluntarily give up a known right. When this occurs, it is known as:
QUESTION: Reciprocal insurer - ANSWER-What is the name of the type of insurer consisting of an
unincorporated group of persons who provide insurance among themselves through an inter-exchange
of indemnity agreements?
QUESTION: One of the parties is not competent - ANSWER-Which of the following would cause a
contract not to be enforceable:
, QUESTION: Domestic Insurer - ANSWER-An insurer incorporated under the laws of the state in which it
is operating is considered to be a(n):
QUESTION: Warranty - ANSWER-When a property insurance applicant makes a statement on an
application that becomes part of the contract and includes a promise by the insured, the statement is
considered to be a:
QUESTION: The Insurance Company - ANSWER-A producer is a representative of:
QUESTION: Unilateral - ANSWER-A contract where only one party, the insurer, makes an enforceable
promise is said to be:
QUESTION: Mutual company - ANSWER-An insurance company owned by its policyholders, who receive
a return of unused premiums in the form of policy dividends, is a(n):
QUESTION: Acts of the insurer may lead the public to believe the producer has - ANSWER-Apparent
authority of an insurance producer is the authority:
QUESTION: It is a form of gambling because it may or may not pay off - ANSWER-All of the following are
true about "insurance" EXCEPT:
