Property & Casualty Insurance BOARD
EVALUATION 2026 GUARANTEED PASS
ANSWERS GRADED A+
● What is a hazard? Answer: Something that increases the chance of a
loss
● What is the difference between a Moral hazard and a Morale Hazard?
Answer: Moral Hazard - dishonesty, against the law
Morale Hazard - carelessness
● What is the method of handling risk that involves a deductible?
Answer: Retention (loss or portion of loss)
● If a fire causes damage to a building, what is the fire considered?
Answer: A Peril
● What are the elements of an insurable risk? Answer: CANHAM
Calculable, Affordable, Non-Catastrophic, Homogeneous, Accidental,
Measurable
● If an insurance company is housed in Tennessee, what type of insurer
are they considered? Answer: Domestic
, ● An insurance company incorporated in Wisconsin and conducting
business in Minnesota is know as what type of insurer? Answer: Foreign
● What is it meant by "Express Authority"? Answer: Authorities are
written in agent contract
● What is a term that is typically used to describe an Insurance Agent?
Answer: Fiduciary - a person in a position of financial trust
● What is a contract or device for transferring risk from a persons,
business, or organization to an insurance company? Answer: Insurance
● What is Reinsurance? Answer: When insurance companies purchase
insurance to cover their own exposures to loss
● What is a fiduciary? Answer: A person in a position of financial trust
● What is it meant by a contract of adhesion? Answer: Policy written by
the insurer with the insured having no input
● What part of the insurance policy shows the premium payment?
Answer: Declarations page
EVALUATION 2026 GUARANTEED PASS
ANSWERS GRADED A+
● What is a hazard? Answer: Something that increases the chance of a
loss
● What is the difference between a Moral hazard and a Morale Hazard?
Answer: Moral Hazard - dishonesty, against the law
Morale Hazard - carelessness
● What is the method of handling risk that involves a deductible?
Answer: Retention (loss or portion of loss)
● If a fire causes damage to a building, what is the fire considered?
Answer: A Peril
● What are the elements of an insurable risk? Answer: CANHAM
Calculable, Affordable, Non-Catastrophic, Homogeneous, Accidental,
Measurable
● If an insurance company is housed in Tennessee, what type of insurer
are they considered? Answer: Domestic
, ● An insurance company incorporated in Wisconsin and conducting
business in Minnesota is know as what type of insurer? Answer: Foreign
● What is it meant by "Express Authority"? Answer: Authorities are
written in agent contract
● What is a term that is typically used to describe an Insurance Agent?
Answer: Fiduciary - a person in a position of financial trust
● What is a contract or device for transferring risk from a persons,
business, or organization to an insurance company? Answer: Insurance
● What is Reinsurance? Answer: When insurance companies purchase
insurance to cover their own exposures to loss
● What is a fiduciary? Answer: A person in a position of financial trust
● What is it meant by a contract of adhesion? Answer: Policy written by
the insurer with the insured having no input
● What part of the insurance policy shows the premium payment?
Answer: Declarations page
