Virginia Property and Casualty Insurance EXAM
LATEST (2025) COMPLETE QUESTIONS With 100%
Verified Solutions,
What is based on the principle of Risk Transfer - (ANSWER)Spreading the results
of a financial loss among many persons, so the cost to any one person is small
What kind of risk has an outcome that is uncertain? - (ANSWER)Speculative Risk
What is the reason for a claim? - (ANSWER)A loss is the reason a claim against an
insurance company.
What is the measure of a loss? - (ANSWER)Exposure Units
Name three types of hazards. - (ANSWER)1. Physical Hazard
2. Moral Hazard
3. Morale Hazard
What is a cause of a loss? - (ANSWER)Perils are the causes of possible loss
What is the common way to transfer risk? - (ANSWER)The most common method
of risk transfer is when a homeowner purchases insurance on their home..
Define adverse selection. - (ANSWER)Insuring risks more prone to losses than an
average risk.
, What is the theory of probability that is the basis for insurance? - (ANSWER)The
Law of Large Numbers
Who manages a Mutual Company - (ANSWER)A Boar of Trustees
What is high risk coverage purchased from an unauthorized company? -
(ANSWER)Surplus Lines Insurers
How are insurance companies defined? - (ANSWER)Where they are located,
chartered, or incorporated.
What protects policy holders from an insurer's insolvency? - (ANSWER)Property
and Casualty Insurance Guaranty Association
What must all insurers obtain to conduct insurance business? -
(ANSWER)Certificate of Authority
Who does an agent represent? - (ANSWER)Always deemed to represent an
insurer (company)
What is the authority that is written in a contract? - (ANSWER)Express Authority
What are the four elements of a contract? - (ANSWER)1. Offer and Acceptance
LATEST (2025) COMPLETE QUESTIONS With 100%
Verified Solutions,
What is based on the principle of Risk Transfer - (ANSWER)Spreading the results
of a financial loss among many persons, so the cost to any one person is small
What kind of risk has an outcome that is uncertain? - (ANSWER)Speculative Risk
What is the reason for a claim? - (ANSWER)A loss is the reason a claim against an
insurance company.
What is the measure of a loss? - (ANSWER)Exposure Units
Name three types of hazards. - (ANSWER)1. Physical Hazard
2. Moral Hazard
3. Morale Hazard
What is a cause of a loss? - (ANSWER)Perils are the causes of possible loss
What is the common way to transfer risk? - (ANSWER)The most common method
of risk transfer is when a homeowner purchases insurance on their home..
Define adverse selection. - (ANSWER)Insuring risks more prone to losses than an
average risk.
, What is the theory of probability that is the basis for insurance? - (ANSWER)The
Law of Large Numbers
Who manages a Mutual Company - (ANSWER)A Boar of Trustees
What is high risk coverage purchased from an unauthorized company? -
(ANSWER)Surplus Lines Insurers
How are insurance companies defined? - (ANSWER)Where they are located,
chartered, or incorporated.
What protects policy holders from an insurer's insolvency? - (ANSWER)Property
and Casualty Insurance Guaranty Association
What must all insurers obtain to conduct insurance business? -
(ANSWER)Certificate of Authority
Who does an agent represent? - (ANSWER)Always deemed to represent an
insurer (company)
What is the authority that is written in a contract? - (ANSWER)Express Authority
What are the four elements of a contract? - (ANSWER)1. Offer and Acceptance
