KY PROPERTY & CASUALTY ASSESSMENT
QUESTIONS 2026 CORRECT ANSWERS
CONFIRMED
⫸ When a person buys insurance what method of handling risk has
been undertaken?
a) transfer
b) reduction
c) avoidance
d) retention. Ans: Transfer
⫸ In property and casualty insurance, insurable interest must exist:
a) at the time a change is made to a policy
b) at the time of policy application
c) at the time of loss
d) at the time of policy solicitation. Ans: At the time of loss
⫸ All of the following actions by a person could be described as a
risk avoidance EXCEPT:
a) investing in the stock market
b) refusing to scuba dive
c) never flying in an airplane
d) taking a flu shot each year. Ans: Investing in the stock market
, ⫸ Which of the following insurance options would be considered a
risk-sharing arrangement ?
a) stock
b) mutual
c) surplus lines
d) reciprocal. Ans: Reciprocal
⫸ Illegal use of narcotics would be an example of:
a) pure hazard
b) morale hazard
c) moral hazard
d) physical hazard. Ans: Moral hazard
⫸ What do individuals use to transfer their risk of loss to a larger
group?
a) insurable interest
b) exposure
c) indemnity
d) insurance. Ans: Insurance
⫸ For the reported losses of an insured group to become more likely
to equal the statistical probability of loss for that particular class, the
insured group must become:
a) more active
b) larger
QUESTIONS 2026 CORRECT ANSWERS
CONFIRMED
⫸ When a person buys insurance what method of handling risk has
been undertaken?
a) transfer
b) reduction
c) avoidance
d) retention. Ans: Transfer
⫸ In property and casualty insurance, insurable interest must exist:
a) at the time a change is made to a policy
b) at the time of policy application
c) at the time of loss
d) at the time of policy solicitation. Ans: At the time of loss
⫸ All of the following actions by a person could be described as a
risk avoidance EXCEPT:
a) investing in the stock market
b) refusing to scuba dive
c) never flying in an airplane
d) taking a flu shot each year. Ans: Investing in the stock market
, ⫸ Which of the following insurance options would be considered a
risk-sharing arrangement ?
a) stock
b) mutual
c) surplus lines
d) reciprocal. Ans: Reciprocal
⫸ Illegal use of narcotics would be an example of:
a) pure hazard
b) morale hazard
c) moral hazard
d) physical hazard. Ans: Moral hazard
⫸ What do individuals use to transfer their risk of loss to a larger
group?
a) insurable interest
b) exposure
c) indemnity
d) insurance. Ans: Insurance
⫸ For the reported losses of an insured group to become more likely
to equal the statistical probability of loss for that particular class, the
insured group must become:
a) more active
b) larger
