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OHIO PROPERTY AND CASUALTY
EXAM FLASHCARDS 2026 QUESTIONS
AND ANSWERS | A+ GRADED | WITH
EXPERT SOLUTIONS
What do individuals use to transfer their risk of loss to a larger
group? - correct answer-Insurance
What are the four elements of an insurance contract? - correct
answer-Agreement (Offer and Acceptance), Consideration,
Competent parties, and legal purpose.
In the agent/insurer relationship, who is considered the principal?
- correct answer-Insurer
Insurance contracts are aleatory in nature. What does that mean?
- correct answer-Unequal values are exchanged between the
parties to a contract.
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What are the methods of managing risk? - correct answer-
Avoidance, transfer, sharing, retention, and reduction
In insurance contracts, when does acceptance usually occur? -
correct answer-When the insurer approves a prepaid application
Wagering on a sporting event is known as what type of risk? -
correct answer-Speculative
A situation in which a person can experience only a loss and no
gain presents what type of risk? - correct answer-Pure Risk
What type of insurer is formed under the laws of another state? -
correct answer-Foreign
When would a misrepresentation on an insurance application be
considered fraud? - correct answer-When it is intentional and
material
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According to the Law of Agency, who represents the principal? -
correct answer-Agent or producer
What does indemnify mean in insurance? - correct answer-To
restore an insured to the same financial status as before a loss.
What is a warranty in an insurance contract? - correct answer-An
absolutely true statement upon which the validity of the policy
depends.
What is the term for the causes of loss insured against in an
insurance policy? - correct answer-Peril
What is a risk? - correct answer-Uncertainty of loss
If an insurer holds a Certificate of Authority, it is known as what
type of insurer? - correct answer-Authorized or Admitted
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What is consideration in an insurance contract? - correct answer-
Consideration is something of value that each party gives to the
other. Consideration on the part of the insurer is binding.
What is consideration on the part of the insurer? - correct answer-
A promise to pay in the event of a loss
A tornado that destroys a property would be an example of what?
- correct answer-Peril
What does the term reasonable expectations mean in insurance?
- correct answer-Certain expectations for coverage that a
reasonable person would have based on sources other than just
the policy language.
Conditions that increase the chance of loss are known as what? -
correct answer-Hazards
What provision states that if a policy allows for greater benefits
than the financial loss incurred, the insured may be compensated
only for the amount lost? - correct answer-Indemnity
OHIO PROPERTY AND CASUALTY
EXAM FLASHCARDS 2026 QUESTIONS
AND ANSWERS | A+ GRADED | WITH
EXPERT SOLUTIONS
What do individuals use to transfer their risk of loss to a larger
group? - correct answer-Insurance
What are the four elements of an insurance contract? - correct
answer-Agreement (Offer and Acceptance), Consideration,
Competent parties, and legal purpose.
In the agent/insurer relationship, who is considered the principal?
- correct answer-Insurer
Insurance contracts are aleatory in nature. What does that mean?
- correct answer-Unequal values are exchanged between the
parties to a contract.
, Page | 2
What are the methods of managing risk? - correct answer-
Avoidance, transfer, sharing, retention, and reduction
In insurance contracts, when does acceptance usually occur? -
correct answer-When the insurer approves a prepaid application
Wagering on a sporting event is known as what type of risk? -
correct answer-Speculative
A situation in which a person can experience only a loss and no
gain presents what type of risk? - correct answer-Pure Risk
What type of insurer is formed under the laws of another state? -
correct answer-Foreign
When would a misrepresentation on an insurance application be
considered fraud? - correct answer-When it is intentional and
material
, Page | 3
According to the Law of Agency, who represents the principal? -
correct answer-Agent or producer
What does indemnify mean in insurance? - correct answer-To
restore an insured to the same financial status as before a loss.
What is a warranty in an insurance contract? - correct answer-An
absolutely true statement upon which the validity of the policy
depends.
What is the term for the causes of loss insured against in an
insurance policy? - correct answer-Peril
What is a risk? - correct answer-Uncertainty of loss
If an insurer holds a Certificate of Authority, it is known as what
type of insurer? - correct answer-Authorized or Admitted
, Page | 4
What is consideration in an insurance contract? - correct answer-
Consideration is something of value that each party gives to the
other. Consideration on the part of the insurer is binding.
What is consideration on the part of the insurer? - correct answer-
A promise to pay in the event of a loss
A tornado that destroys a property would be an example of what?
- correct answer-Peril
What does the term reasonable expectations mean in insurance?
- correct answer-Certain expectations for coverage that a
reasonable person would have based on sources other than just
the policy language.
Conditions that increase the chance of loss are known as what? -
correct answer-Hazards
What provision states that if a policy allows for greater benefits
than the financial loss incurred, the insured may be compensated
only for the amount lost? - correct answer-Indemnity
