Texas Property & Casualty Insurance questions with correct answers

A condition or situation that presents a possibility of loss is a (an): CORRECT ANSWER exposure The purpose of insurance is to: CORRECT ANSWER transfer risk Which hazard can be described as a careless attitude or general indifference on the part of the insured toward the occurrence of loss? CORRECT ANSWER morale Which risk is insurable? CORRECT ANSWER pure With regard to insurance, risk can be defined as: CORRECT ANSWER uncertainty regarding loss Treating risk by purchasing insurance is an example of what type of risk management? CORRECT ANSWER transfer Robert and Carolyn live in a busy city and decide that not owning a car is the solution to not experience having a car stolen. What method describes this philosophy? CORRECT ANSWER avoidance Dishonesty on the part of an insured is an example of what? CORRECT ANSWER a moral hazard