OHIO PROPERTY AND CASUALTY EXAMPREP
BUNDLED EXAMS LATEST KNOWLEDGE
CHECK WITH VERIFIED A+ SOLUTIONS AND
SCENARIOS
◉What are the four elements of an insurance contract? Answer:
Agreement (Offer and Acceptance), Consideration, Competent parties,
and legal purpose.
◉In the agent/insurer relationship, who is considered the principal?
Answer: Insurer
◉Insurance contracts are aleatory in nature. What does that mean?
Answer: Unequal values are exchanged between the parties to a contract.
◉What are the methods of managing risk? Answer: Avoidance, transfer,
sharing, retention, and reduction
◉In insurance contracts, when does acceptance usually occur? Answer:
When the insurer approves a prepaid application
,◉Wagering on a sporting event is known as what type of risk? Answer:
Speculative
◉A situation in which a person can experience only a loss and no gain
presents what type of risk? Answer: Pure Risk
◉What type of insurer is formed under the laws of another state?
Answer: Foreign
◉When would a misrepresentation on an insurance application be
considered fraud? Answer: When it is intentional and material
◉According to the Law of Agency, who represents the principal?
Answer: Agent or producer
◉What does indemnify mean in insurance? Answer: To restore an
insured to the same financial status as before a loss.
◉What is a warranty in an insurance contract? 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? Answer: Peril
,◉What is a risk? Answer: Uncertainty of loss
◉If an insurer holds a Certificate of Authority, it is known as what type
of insurer? Answer: Authorized or Admitted
◉What is consideration in an insurance contract? 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? Answer: A promise to
pay in the event of a loss
◉A tornado that destroys a property would be an example of what?
Answer: Peril
◉What does the term reasonable expectations mean in insurance?
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?
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? Answer: Indemnity
, ◉What are the three types of hazards? Answer: Physical, moral, and
morale
◉What document is required for an insurance company to transact
insurance? Answer: Certificate of Authority
◉What does the term unilateral contract mean? Answer: A unilateral
contract is a one-sided contract. This means only one party makes an
enforceable promise.
◉In insurance contracts, when is the offer usually made? Answer: When
the insurance application is submitted.
◉What are the three types of agent authority? Answer: Express, implied
and apparent
◉Insurers are classified according to their domicile. What are the three
types of insurers? Answer: Domestic, foreign, and alien
◉What type of authority is based on the agent's actions, or words?
Answer: Apparent
BUNDLED EXAMS LATEST KNOWLEDGE
CHECK WITH VERIFIED A+ SOLUTIONS AND
SCENARIOS
◉What are the four elements of an insurance contract? Answer:
Agreement (Offer and Acceptance), Consideration, Competent parties,
and legal purpose.
◉In the agent/insurer relationship, who is considered the principal?
Answer: Insurer
◉Insurance contracts are aleatory in nature. What does that mean?
Answer: Unequal values are exchanged between the parties to a contract.
◉What are the methods of managing risk? Answer: Avoidance, transfer,
sharing, retention, and reduction
◉In insurance contracts, when does acceptance usually occur? Answer:
When the insurer approves a prepaid application
,◉Wagering on a sporting event is known as what type of risk? Answer:
Speculative
◉A situation in which a person can experience only a loss and no gain
presents what type of risk? Answer: Pure Risk
◉What type of insurer is formed under the laws of another state?
Answer: Foreign
◉When would a misrepresentation on an insurance application be
considered fraud? Answer: When it is intentional and material
◉According to the Law of Agency, who represents the principal?
Answer: Agent or producer
◉What does indemnify mean in insurance? Answer: To restore an
insured to the same financial status as before a loss.
◉What is a warranty in an insurance contract? 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? Answer: Peril
,◉What is a risk? Answer: Uncertainty of loss
◉If an insurer holds a Certificate of Authority, it is known as what type
of insurer? Answer: Authorized or Admitted
◉What is consideration in an insurance contract? 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? Answer: A promise to
pay in the event of a loss
◉A tornado that destroys a property would be an example of what?
Answer: Peril
◉What does the term reasonable expectations mean in insurance?
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?
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? Answer: Indemnity
, ◉What are the three types of hazards? Answer: Physical, moral, and
morale
◉What document is required for an insurance company to transact
insurance? Answer: Certificate of Authority
◉What does the term unilateral contract mean? Answer: A unilateral
contract is a one-sided contract. This means only one party makes an
enforceable promise.
◉In insurance contracts, when is the offer usually made? Answer: When
the insurance application is submitted.
◉What are the three types of agent authority? Answer: Express, implied
and apparent
◉Insurers are classified according to their domicile. What are the three
types of insurers? Answer: Domestic, foreign, and alien
◉What type of authority is based on the agent's actions, or words?
Answer: Apparent
