©THEBRIGHT 2024/2025 ALL RIGHTS RESERVED 10:15AM A+
P&C License – Missouri Exam Questions
And Answers |Latest 2025 | Guaranteed Pass.
Moral Hazard - Answer✔dishonesty or character defects in an individual that increase the
chance of loss, ex: lying on app or faking a loss
Morale Hazard - Answer✔carelessness or indifference to a loss because of the existence of
insurance, ex: leaving door unlocked
Parts of an Insurance Policy (5 Sections) - Answer✔D-I-C-E-E
Declarations
Insuring Agreements
Conditions
Endorsements
Exclusions
Declarations Section - Answer✔-who what when and where
-name, location of residence, policy period, coverages, limits of liability, deductibles
Insuring Agreement Section - Answer✔-describes the covered perils
-summarizes major promises of the policy
Conditions Section - Answer✔-policy provisions
-rules of conduct
-duties
-obligations
Endorsements Section - Answer✔-add, modify, or take away coverage
1
, ©THEBRIGHT 2024/2025 ALL RIGHTS RESERVED 10:15AM A+
The self retention limit - Answer✔the amt of a loss that the insured must cover out of pocket,
acts as a deductible unless the umbrella policy covers the excess liabilities
Insurance uses the risk MGT method of ________ to spread the risk among insureds -
Answer✔Transfer
The tendency for higher-risk individuals to get and keep insurance. This can be avoided using
the underwriting process, where insurance companies can identify high risk individuals. -
Answer✔Adverse Selection
Mutual Insurer - Answer✔An insurer that is owned by its policyholders, elects its own board of
directors, and provides insurance to them. The policyowners participate in the operating results
of the company so they are "PARTICIPATING POLICIES"
Fraternal Benefit Societies - Answer✔Insurance companies formed to provide insurance only
for members of an affiliated lodge, religious organization, or fraternal organization
Reciprocal Insurers - Answer✔unincorporated groups of people that provide insurance under a
contract. Members are called subscribers and each subscriber is assessed an equal amt to pay
each claim by an attorney-in-fact.
Lloyd's Association - Answer✔group of individuals who share the risk and the exposure
- known for insuring unusual risks like athletes arms or celebs hair
Risk Retention Group - Answer✔A liability insurance company owned by its members, which
are exposed to similar liability risks by virtue of being in the same business or industry.
Risk Purchasing Groups - Answer✔Groups of people with similar insurance needs who form an
organization to BUY insurance as a group.
Surplus Lines Insurance - Answer✔Insurance obtained from nonadmitted insurers when
protection is not available from admitted insurers. Usually exceptionally large or specialized
risks.
independent insurance agent - Answer✔represents many different insurance companies
captive (exclusive) insurance agent - Answer✔works for one particular insurance company
(Kirk)
General Agent (GA) - Answer✔An individual appointed by an insurer to administer its business
in a given territory. A GA is responsible for building the agency and service force.
Directing writing insurance agent - Answer✔Products are sold by its employees, not
independent contractors
2
P&C License – Missouri Exam Questions
And Answers |Latest 2025 | Guaranteed Pass.
Moral Hazard - Answer✔dishonesty or character defects in an individual that increase the
chance of loss, ex: lying on app or faking a loss
Morale Hazard - Answer✔carelessness or indifference to a loss because of the existence of
insurance, ex: leaving door unlocked
Parts of an Insurance Policy (5 Sections) - Answer✔D-I-C-E-E
Declarations
Insuring Agreements
Conditions
Endorsements
Exclusions
Declarations Section - Answer✔-who what when and where
-name, location of residence, policy period, coverages, limits of liability, deductibles
Insuring Agreement Section - Answer✔-describes the covered perils
-summarizes major promises of the policy
Conditions Section - Answer✔-policy provisions
-rules of conduct
-duties
-obligations
Endorsements Section - Answer✔-add, modify, or take away coverage
1
, ©THEBRIGHT 2024/2025 ALL RIGHTS RESERVED 10:15AM A+
The self retention limit - Answer✔the amt of a loss that the insured must cover out of pocket,
acts as a deductible unless the umbrella policy covers the excess liabilities
Insurance uses the risk MGT method of ________ to spread the risk among insureds -
Answer✔Transfer
The tendency for higher-risk individuals to get and keep insurance. This can be avoided using
the underwriting process, where insurance companies can identify high risk individuals. -
Answer✔Adverse Selection
Mutual Insurer - Answer✔An insurer that is owned by its policyholders, elects its own board of
directors, and provides insurance to them. The policyowners participate in the operating results
of the company so they are "PARTICIPATING POLICIES"
Fraternal Benefit Societies - Answer✔Insurance companies formed to provide insurance only
for members of an affiliated lodge, religious organization, or fraternal organization
Reciprocal Insurers - Answer✔unincorporated groups of people that provide insurance under a
contract. Members are called subscribers and each subscriber is assessed an equal amt to pay
each claim by an attorney-in-fact.
Lloyd's Association - Answer✔group of individuals who share the risk and the exposure
- known for insuring unusual risks like athletes arms or celebs hair
Risk Retention Group - Answer✔A liability insurance company owned by its members, which
are exposed to similar liability risks by virtue of being in the same business or industry.
Risk Purchasing Groups - Answer✔Groups of people with similar insurance needs who form an
organization to BUY insurance as a group.
Surplus Lines Insurance - Answer✔Insurance obtained from nonadmitted insurers when
protection is not available from admitted insurers. Usually exceptionally large or specialized
risks.
independent insurance agent - Answer✔represents many different insurance companies
captive (exclusive) insurance agent - Answer✔works for one particular insurance company
(Kirk)
General Agent (GA) - Answer✔An individual appointed by an insurer to administer its business
in a given territory. A GA is responsible for building the agency and service force.
Directing writing insurance agent - Answer✔Products are sold by its employees, not
independent contractors
2
