1
For Expert help and assignment solutions, +254707240657
Virginia Property and Casualty Insurance
Questions and Answers (100% Correct
Answers) Already Graded A+
What is based on the principle of Risk Transfer—Ans: 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?—Ans:
© 2025 Assignment Expert
Speculative Risk
What is the reason for a claim?—Ans: A loss is the reason a claim
against an insurance company.
Guru01 - Stuvia
What is the measure of a loss?—Ans: Exposure Units
Name three types of hazards.—Ans: 1. Physical Hazard
2. Moral Hazard
3. Morale Hazard
What is a cause of a loss?—Ans: Perils are the causes of possible
loss
What is the common way to transfer risk?—Ans: The most
common method of risk transfer is when a homeowner purchases
insurance on their home..
Define adverse selection.—Ans: Insuring risks more prone to losses
than an average risk.
What is the theory of probability that is the basis for insurance?—
Ans: The Law of Large Numbers
Who manages a Mutual Company—Ans: A Boar of Trustees
What is high risk coverage purchased from an unauthorized
company?—Ans: Surplus Lines Insurers
, 2
For Expert help and assignment solutions, +254707240657
How are insurance companies defined?—Ans: Where they are
located, chartered, or incorporated.
What protects policy holders from an insurer's insolvency?—Ans:
Property and Casualty Insurance Guaranty Association
What must all insurers obtain to conduct insurance business?—Ans:
Certificate of Authority
Who does an agent represent?—Ans: Always deemed to
represent an insurer (company)
What is the authority that is written in a contract?—Ans: Express
Authority
What are the four elements of a contract?—Ans: 1. Offer and
© 2025 Assignment Expert
Acceptance
2. Consideration
3. Competent Parties
Guru01 - Stuvia
4. Legal Purpose
Define a fiduciary.—Ans: An agent/broker who handles insurer's
funds in a trust capacity
What is a value in a contract?—Ans: The consideration
What is the fine for violating the Fair Credit Reporting Act?—Ans:
A maximum fine of $2,500.00
What must an insured have in regards to their covered property
with their insurer?—Ans: Insurable Interest
When must insurable interest exist if an insured' property is
damaged?—Ans: It must exist at the time of loss
What is the initial screening of an applicant for insurance
coverage?—Ans: Underwriting
Why is a loss ratio formula used?—Ans: To determine the
comparison between premium income losses, paid claim and
claims related cost (this is how insurance company determine
profitability)
For Expert help and assignment solutions, +254707240657
Virginia Property and Casualty Insurance
Questions and Answers (100% Correct
Answers) Already Graded A+
What is based on the principle of Risk Transfer—Ans: 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?—Ans:
© 2025 Assignment Expert
Speculative Risk
What is the reason for a claim?—Ans: A loss is the reason a claim
against an insurance company.
Guru01 - Stuvia
What is the measure of a loss?—Ans: Exposure Units
Name three types of hazards.—Ans: 1. Physical Hazard
2. Moral Hazard
3. Morale Hazard
What is a cause of a loss?—Ans: Perils are the causes of possible
loss
What is the common way to transfer risk?—Ans: The most
common method of risk transfer is when a homeowner purchases
insurance on their home..
Define adverse selection.—Ans: Insuring risks more prone to losses
than an average risk.
What is the theory of probability that is the basis for insurance?—
Ans: The Law of Large Numbers
Who manages a Mutual Company—Ans: A Boar of Trustees
What is high risk coverage purchased from an unauthorized
company?—Ans: Surplus Lines Insurers
, 2
For Expert help and assignment solutions, +254707240657
How are insurance companies defined?—Ans: Where they are
located, chartered, or incorporated.
What protects policy holders from an insurer's insolvency?—Ans:
Property and Casualty Insurance Guaranty Association
What must all insurers obtain to conduct insurance business?—Ans:
Certificate of Authority
Who does an agent represent?—Ans: Always deemed to
represent an insurer (company)
What is the authority that is written in a contract?—Ans: Express
Authority
What are the four elements of a contract?—Ans: 1. Offer and
© 2025 Assignment Expert
Acceptance
2. Consideration
3. Competent Parties
Guru01 - Stuvia
4. Legal Purpose
Define a fiduciary.—Ans: An agent/broker who handles insurer's
funds in a trust capacity
What is a value in a contract?—Ans: The consideration
What is the fine for violating the Fair Credit Reporting Act?—Ans:
A maximum fine of $2,500.00
What must an insured have in regards to their covered property
with their insurer?—Ans: Insurable Interest
When must insurable interest exist if an insured' property is
damaged?—Ans: It must exist at the time of loss
What is the initial screening of an applicant for insurance
coverage?—Ans: Underwriting
Why is a loss ratio formula used?—Ans: To determine the
comparison between premium income losses, paid claim and
claims related cost (this is how insurance company determine
profitability)
