VIRGINIA PROPERTY AND CASUALTY
INSURANCE | COMPREHENSIVE EXAM
PREP, PRACTICE QUESTIONS, CORRECT
ANSWERS AND STUDY GUIDE
| GRADED A+ | GUARANTEED SUCCESS
Updated 2026 Questions and Answers
100% Verified Exam Prep
, What is a cause of a loss? Perils are the causes of possible loss
What is the common way to transfer risk? The most common method of risk transfer is when a homeowner purchases insurance on
their home..
Define adverse selection. Insuring risks more prone to losses than an average risk.
What is the theory of probability that is the basis for The Law of Large Numbers
insurance?
Who manages a Mutual Company A Boar of Trustees
What is high risk coverage purchased from an unauthorized Surplus Lines Insurers
company?
How are insurance companies defined? Where they are located, chartered, or incorporated.
What protects policy holders from an insurer's insolvency? Property and Casualty Insurance Guaranty Association
What must all insurers obtain to conduct insurance business? Certificate of Authority
Who does an agent represent? Always deemed to represent an insurer (company)
What is the authority that is written in a contract? Express Authority
What are the four elements of a contract? 1. Offer and Acceptance
2. Consideration
3. Competent Parties
4. Legal Purpose
Define a fiduciary. An agent/broker who handles insurer's funds in a trust capacity
What is a value in a contract? The consideration
What is the fine for violating the Fair Credit Reporting Act? A maximum fine of $2,500.00
INSURANCE | COMPREHENSIVE EXAM
PREP, PRACTICE QUESTIONS, CORRECT
ANSWERS AND STUDY GUIDE
| GRADED A+ | GUARANTEED SUCCESS
Updated 2026 Questions and Answers
100% Verified Exam Prep
, What is a cause of a loss? Perils are the causes of possible loss
What is the common way to transfer risk? The most common method of risk transfer is when a homeowner purchases insurance on
their home..
Define adverse selection. Insuring risks more prone to losses than an average risk.
What is the theory of probability that is the basis for The Law of Large Numbers
insurance?
Who manages a Mutual Company A Boar of Trustees
What is high risk coverage purchased from an unauthorized Surplus Lines Insurers
company?
How are insurance companies defined? Where they are located, chartered, or incorporated.
What protects policy holders from an insurer's insolvency? Property and Casualty Insurance Guaranty Association
What must all insurers obtain to conduct insurance business? Certificate of Authority
Who does an agent represent? Always deemed to represent an insurer (company)
What is the authority that is written in a contract? Express Authority
What are the four elements of a contract? 1. Offer and Acceptance
2. Consideration
3. Competent Parties
4. Legal Purpose
Define a fiduciary. An agent/broker who handles insurer's funds in a trust capacity
What is a value in a contract? The consideration
What is the fine for violating the Fair Credit Reporting Act? A maximum fine of $2,500.00
