KY PROPERTY & CASUALTY ACTUAL TEST
SET 2026 PRECISE SOLUTIONS DELIVERED
◍ Purpose of insurance Answer: To transfer risk from a person,
business or organization to an insurance company in exchange for a
deductible
◍ The type of insurance company in which the policy holder is
considered an owner, with right to vote & share in profits is a Answer:
Mutual company
◍ What is not an element of insurability? Answer: Risk of loss must
be speculative
◍ The principle that states that an insured should be stored to approx
the same financial position after loss is Answer: Indemnity
◍ What part of an insurance policy personalizes the policy as to who
and what are insured? Answer: Declarations
◍ An insurance policy is prepared by the company, with little or no
input from the insured. This means that an policy is a/an Answer:
Adhesion contract
, ◍ An individual who owns and lives in a condo can obtain both
broad coverage for person property in the condo under which
homeowners form? Answer: HO-6
◍ What is the purpose is the fair credit reporting act? Answer: To
give the recourse if insurance is denied in the basis of a credit report
◍ Which is not a liability loss? Answer: A fire that was caused the
insured negligence burns a neighboring building
◍ What rating method involves nosying the premium based on the
insured loss experience over a specific time? Answer: Experience
rating
◍ Most Flood insurance coverage is provided by Answer: a federal
government program
◍ What type of business could be emigre for a business owners
policy? Answer: Rest Easy Motel
◍ What type of benefit is generally not provided by a state worker
compensation law? Answer: Pain and suffering
◍ What describes an insurance company doing business in a state
other than one where it is incorporated? Answer: Foreign
SET 2026 PRECISE SOLUTIONS DELIVERED
◍ Purpose of insurance Answer: To transfer risk from a person,
business or organization to an insurance company in exchange for a
deductible
◍ The type of insurance company in which the policy holder is
considered an owner, with right to vote & share in profits is a Answer:
Mutual company
◍ What is not an element of insurability? Answer: Risk of loss must
be speculative
◍ The principle that states that an insured should be stored to approx
the same financial position after loss is Answer: Indemnity
◍ What part of an insurance policy personalizes the policy as to who
and what are insured? Answer: Declarations
◍ An insurance policy is prepared by the company, with little or no
input from the insured. This means that an policy is a/an Answer:
Adhesion contract
, ◍ An individual who owns and lives in a condo can obtain both
broad coverage for person property in the condo under which
homeowners form? Answer: HO-6
◍ What is the purpose is the fair credit reporting act? Answer: To
give the recourse if insurance is denied in the basis of a credit report
◍ Which is not a liability loss? Answer: A fire that was caused the
insured negligence burns a neighboring building
◍ What rating method involves nosying the premium based on the
insured loss experience over a specific time? Answer: Experience
rating
◍ Most Flood insurance coverage is provided by Answer: a federal
government program
◍ What type of business could be emigre for a business owners
policy? Answer: Rest Easy Motel
◍ What type of benefit is generally not provided by a state worker
compensation law? Answer: Pain and suffering
◍ What describes an insurance company doing business in a state
other than one where it is incorporated? Answer: Foreign
