Property and Casualty Insurance Exam Questions With Answers Latest 2024 (GRADED)

Property and Casualty Insurance Exam Questions With Answers Latest 2024 (GRADED) What is a peril? A Peril is a cause of loss What is a hazard? Something that increases the chance of a loss What is the difference between a Moral hazard and a Morale Hazard? Moral Hazard - dishonesty, against the law Morale Hazard - carelessness What is the method of handling risk that involves a deductible? Retention (loss or portion of loss) If a fire causes damage to a building, what is the fire considered? A Peril What are the elements of an insurable risk? CANHAM Calculable, Affordable, Non-Catastrophic, Homogeneous, Accidental, Measurable If an insurance company is housed in Tennessee, what type of insurer are they considered? Domestic An insurance company incorporated in Wisconsin and conducting business in Minnesota is know as what type of insurer? Foreign What is it meant by "Express Authority"? Authorities are written in agent contract What is a term that is typically used to describe an Insurance Agent? 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? Insurance What is Reinsurance? When insurance companies purchase insurance to cover their own exposures to loss What is a fiduciary? A person in a position of financial trust What is it meant by a contract of adhesion? Policy written by the insurer with the insured having no input What part of the insurance policy shows the premium payment? Declarations page What are the duties of the insured after a loss? Notice to insurer, protect property from further damage, Proof of loss, property available for inspection, examination under oath if needed, cooperate with insurer What is the FCRA? Fair Credit Reporting Act - If the insurer uses credit, must inform insured What are the parts to an insurance contract? Declarations, Conditions, Insuring Agreements, and Exclusions When an insured decides to cancel an insurance policy before the expiration date, how is the unearned premium returned? Short-Rate basis What are the three basic perils? Fire, Lightning, and Internal Explosion What are the extended coverage perils?