KY Property & Casualty Insurance Exam|
43 Questions with Verified Answers
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
- Insurance is the transfer of:
a) peril
b) risk
c) loss
d) hazard - -Risk
- Which one of the following is NOT an element of insurability?
a) loss must be expected
b) risk of loss is speculative
c) loss is calculable
d) risk of loss must represent a financial hardship - -Risk of loss is
speculative
- All of the following are examples of hazards EXCEPT:
a) a fire in the kitchen of a home
b) trash or debris in the basement of a home
c) faulty wiring in a home
d) broken step or hand railing on the porch - -A fire in the kitchen of a home
- What hazard would you be concerned about if you lived next to an
explosive contractor?
a) morale
b) dangerous
c) physical
d) moral - -Physical
43 Questions with Verified Answers
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
- Insurance is the transfer of:
a) peril
b) risk
c) loss
d) hazard - -Risk
- Which one of the following is NOT an element of insurability?
a) loss must be expected
b) risk of loss is speculative
c) loss is calculable
d) risk of loss must represent a financial hardship - -Risk of loss is
speculative
- All of the following are examples of hazards EXCEPT:
a) a fire in the kitchen of a home
b) trash or debris in the basement of a home
c) faulty wiring in a home
d) broken step or hand railing on the porch - -A fire in the kitchen of a home
- What hazard would you be concerned about if you lived next to an
explosive contractor?
a) morale
b) dangerous
c) physical
d) moral - -Physical
