NORTH CAROLINA PROPERTY AND
CASUALTY STATE CERTIFICATION
TEST 2026 VERIFIED QUESTIONS
AND ANSWERS GRADED A+
◉ Pure Risk. Answer: Pure risks are those risks where the outcome shall
result in loss only or at best a break-even situation
◉ Speculative Risk. Answer: risks where there is the possibility of gain
or profit
◉ Hazard. Answer: Increases the probability of a loss occurring or
Influences the extent or size of a loss
◉ Physical Hazard. Answer: Material, Structural, operational features of
a risk situation and increases the chances that a loss will occur
◉ Moral Hazard. Answer: Peoples illegal or unethical actions such as
filing fraudulent claims or giving false information
◉ Morale Hazard. Answer: Carelessness and improper maintenance
◉ Legal Hazzard. Answer: Court Actions which increase the size of the
loss
, ◉ Peril. Answer: Cause of Loss
◉ Indemnity. Answer: Insurance policy is required to return an insured
to the same finical status that existed prior to the loss, no better, and no
worse.
◉ Insurable Intrest. Answer: Insured has in an insurable asset, such as
business, vehicle, or residence.
◉ Direct Loss. Answer: Direct Physical or Financial loss to property or
assets because of a covered peril
◉ Indirect loss. Answer: consequence of the direct loss
◉ Negligence. Answer: failure to take proper care in doing something
◉ Establish Negligence. Answer: 1.Legal Duty
2. Breach of Legal Duty Owned
3. Proximate Cause
4. Damages
◉ Endorsement. Answer: Changes policy by broadening or restricting
policies coverage
CASUALTY STATE CERTIFICATION
TEST 2026 VERIFIED QUESTIONS
AND ANSWERS GRADED A+
◉ Pure Risk. Answer: Pure risks are those risks where the outcome shall
result in loss only or at best a break-even situation
◉ Speculative Risk. Answer: risks where there is the possibility of gain
or profit
◉ Hazard. Answer: Increases the probability of a loss occurring or
Influences the extent or size of a loss
◉ Physical Hazard. Answer: Material, Structural, operational features of
a risk situation and increases the chances that a loss will occur
◉ Moral Hazard. Answer: Peoples illegal or unethical actions such as
filing fraudulent claims or giving false information
◉ Morale Hazard. Answer: Carelessness and improper maintenance
◉ Legal Hazzard. Answer: Court Actions which increase the size of the
loss
, ◉ Peril. Answer: Cause of Loss
◉ Indemnity. Answer: Insurance policy is required to return an insured
to the same finical status that existed prior to the loss, no better, and no
worse.
◉ Insurable Intrest. Answer: Insured has in an insurable asset, such as
business, vehicle, or residence.
◉ Direct Loss. Answer: Direct Physical or Financial loss to property or
assets because of a covered peril
◉ Indirect loss. Answer: consequence of the direct loss
◉ Negligence. Answer: failure to take proper care in doing something
◉ Establish Negligence. Answer: 1.Legal Duty
2. Breach of Legal Duty Owned
3. Proximate Cause
4. Damages
◉ Endorsement. Answer: Changes policy by broadening or restricting
policies coverage
