P&C License Exam – Missouri questions with answers.

P&C License Exam – Missouri questions
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with answers |\




Moral Hazard - CORRECT ANSWERS ✔✔dishonesty or
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character defects in an individual that increase the
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chance of loss, ex: lying on app or faking a loss
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Morale Hazard - CORRECT ANSWERS ✔✔carelessness or
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indifference to a loss because of the existence of |\ |\ |\ |\ |\ |\ |\ |\ |\



insurance, ex: leaving door unlocked |\ |\ |\ |\




Parts of an Insurance Policy (5 Sections) - CORRECT
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ANSWERS ✔✔D-I-C-E-E |\




Declarations
Insuring Agreements |\




Conditions
Endorsements
Exclusions


Declarations Section - CORRECT ANSWERS ✔✔-who what |\ |\ |\ |\ |\ |\ |\



when and where
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-name, location of residence, policy period, coverages,
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limits of liability, deductibles
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,Insuring Agreement Section - CORRECT ANSWERS ✔✔-
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describes the covered perils |\ |\ |\




-summarizes major promises of the policy |\ |\ |\ |\ |\




Conditions Section - CORRECT ANSWERS ✔✔-policy |\ |\ |\ |\ |\ |\



provisions
-rules of conduct |\ |\




-duties
-obligations


Endorsements Section - CORRECT ANSWERS ✔✔-add, |\ |\ |\ |\ |\ |\



modify, or take away coverage|\ |\ |\ |\




The self retention limit - CORRECT ANSWERS ✔✔the amt
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of a loss that the insured must cover out of pocket, acts
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as a deductible unless the umbrella policy covers the
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excess liabilities |\




Insurance uses the risk MGT method of ________ to spread
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the risk among insureds - CORRECT ANSWERS ✔✔Transfer
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The tendency for higher-risk individuals to get and keep
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insurance. This can be avoided using the underwriting
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, process, where insurance companies can identify high risk
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individuals. - CORRECT ANSWERS ✔✔Adverse Selection
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Mutual Insurer - CORRECT ANSWERS ✔✔An insurer that is
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owned by its policyholders, elects its own board of
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directors, and provides insurance to them. The
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policyowners participate in the operating results of the |\ |\ |\ |\ |\ |\ |\ |\



company so they are "PARTICIPATING POLICIES"
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Fraternal Benefit Societies - CORRECT ANSWERS
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✔✔Insurance companies formed to provide insurance only |\ |\ |\ |\ |\ |\



for members of an affiliated lodge, religious organization,
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or fraternal organization
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Reciprocal Insurers - CORRECT ANSWERS |\ |\ |\ |\ |\



✔✔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.
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Lloyd's Association - CORRECT ANSWERS ✔✔group of
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individuals who share the risk and the exposure |\ |\ |\ |\ |\ |\ |\ |\




- known for insuring unusual risks like athletes arms or
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celebs hair |\