KY Property & Casualty Insurance Exam Already Passed

KY Property & Casualty Insurance Exam Already Passed Faulty wiring in a home is an example of a: a) loss b) peril c) risk d) hazard Hazard When a person buys insurance what method of handling risk has been undertaken? a) transfer b) reduction c) avoidance d) retention Transfer In property and casualty insurance, insurable interest must exist: a) at the time a change is made to a policy b) at the time of policy application c) at the time of loss d) at the time of policy solicitation At the time of loss All of the following actions by a person could be described as a risk avoidance EXCEPT: a) investing in the stock market b) refusing to scuba dive c) never flying in an airplane d) taking a flu shot each year Investing in the stock market Which of the following insurance options would be considered a risk-sharing arrangement ? a) stock b) mutual c) surplus lines d) reciprocal Reciprocal Illegal use of narcotics would be an example of: a) pure hazard b) morale hazard c) moral hazard d) physical hazard Moral hazard What do individuals use to transfer their risk of loss to a larger group? a) insurable interest b) exposure c) indemnity d) insurance Insurance For the reported losses of an insured group to become more likely to equal the statistical probability of loss for that particular class, the insured group must become: a) more active b) larger c) smaller d) older Larger What type of insurance policy insures against all risks of loss that are not specifically excluded by the policy? a) binder policy b) named peril policy c) open peril policy d) specified peril policy Open peril policy