Arkansas Property & Casualty Practice Exam questions with correct answers

Pay the claims covered under the policy. CORRECT ANSWER A primary obligation of an insurance company is to: Accumulating Risk CORRECT ANSWER Which of the following is not a reaction to risk? An increase in the possibility that a loss may occur. CORRECT ANSWER Which of the following describes a hazard? Requiring the policyholder to carry insurance to value. CORRECT ANSWER Which of the following best meets the test of the "Principle of Indemnity"? Overpayment of a claim CORRECT ANSWER The principle of indemnity is designed to avoid: Flood CORRECT ANSWER Which of the following losses would not be covered on an "all-risk" crop insurance policy? Crime Insurance CORRECT ANSWER The Fair Plan offers what kind of coverage for individuals and businesses in high hazard areas? Embezzlement CORRECT ANSWER An agent who collects premiums and converts those premiums to his own personal use is guilty of: Deductible CORRECT ANSWER Which of the following terms describes what is subtracted from a claim payment t