Tennessee Property and Casualty Insurance Test Graded
A+ Exams 2025!! (Revised 100% Success Rate)
The roof of Robbie's home was badly damaged by hail and had to be replaced. Fortunately, Robbie's
insurance covered losses caused by hail. In this situation, hail is a(n):
-hazard
-risk
-exposure
-peril - Peril
By purchasing an insurance policy, a person manages risk by
-retaining it
-avoiding it
-transferring it
-controlling it - Transferring it
Because the Bender Insurance Company insures a large number of similar convenience stores against
fire:
-Bender faces the possibility of a catastrophic loss.
-Bender can predict its losses with much more accuracy than if it insured only a few stores.
-Bender appears to be a victim of adverse selection.
-Bender is using the risk management technique of loss control. - Bender can predict its losses with
much more accuracy than if it insured only a few stores.
Rory's parents offered to buy him a new car to take to college, but Rory turned them down because
he was afraid the car would be stolen or damaged if he parked it on campus. In deciding not to own a
car, what risk management technique did Rory employ?
-risk reduction
-risk retention
-risk avoidance
-risk prevention - Risk Avoidance
RST Insurance Company sells auto insurance only through the Internet. What type of marketing
system does RST use?
, -direct response marketing
-insurance brokers
-the independent agency system
-the exclusive agency system - Direct Response Marketing
While giving a speech, the state insurance commissioner refers to VWX Insurance Company as an
alien insurer. Assuming the description is accurate, where does VWX Insurance Company have its
headquarters? - Outside the US
Roberto works for an organization that places excess and surplus lines insurance coverage with
nonadmitted insurers. What is Roberto's employer?
-independent insurance agent
-surplus lines broker
-direct writer
-unauthorized entity - Surplus Lines Broker
Emory and a number of other members of his church buy life insurance from a church-related
organization that provides insurance to members of a particular religious body. What kind of
organization is it?
-reciprocal insurer
-county mutual
-purchasing group
-fraternal benefit society - Fraternal Benefit Society
Cindy and Sandy are insurance producers. Although both sell auto insurance, Cindy sells policies for
several insurance companies, while Sandy sells policies for one company. Which statement is
correct?
-Cindy is an exclusive producer, and Sandy is an independent producer.
-Sandy is an exclusive producer, and Cindy is an independent producer.
-Both are exclusive producers.
-Both are independent producers. - Sandy is an exclusive producer, and Cindy is an independent
producer.
A+ Exams 2025!! (Revised 100% Success Rate)
The roof of Robbie's home was badly damaged by hail and had to be replaced. Fortunately, Robbie's
insurance covered losses caused by hail. In this situation, hail is a(n):
-hazard
-risk
-exposure
-peril - Peril
By purchasing an insurance policy, a person manages risk by
-retaining it
-avoiding it
-transferring it
-controlling it - Transferring it
Because the Bender Insurance Company insures a large number of similar convenience stores against
fire:
-Bender faces the possibility of a catastrophic loss.
-Bender can predict its losses with much more accuracy than if it insured only a few stores.
-Bender appears to be a victim of adverse selection.
-Bender is using the risk management technique of loss control. - Bender can predict its losses with
much more accuracy than if it insured only a few stores.
Rory's parents offered to buy him a new car to take to college, but Rory turned them down because
he was afraid the car would be stolen or damaged if he parked it on campus. In deciding not to own a
car, what risk management technique did Rory employ?
-risk reduction
-risk retention
-risk avoidance
-risk prevention - Risk Avoidance
RST Insurance Company sells auto insurance only through the Internet. What type of marketing
system does RST use?
, -direct response marketing
-insurance brokers
-the independent agency system
-the exclusive agency system - Direct Response Marketing
While giving a speech, the state insurance commissioner refers to VWX Insurance Company as an
alien insurer. Assuming the description is accurate, where does VWX Insurance Company have its
headquarters? - Outside the US
Roberto works for an organization that places excess and surplus lines insurance coverage with
nonadmitted insurers. What is Roberto's employer?
-independent insurance agent
-surplus lines broker
-direct writer
-unauthorized entity - Surplus Lines Broker
Emory and a number of other members of his church buy life insurance from a church-related
organization that provides insurance to members of a particular religious body. What kind of
organization is it?
-reciprocal insurer
-county mutual
-purchasing group
-fraternal benefit society - Fraternal Benefit Society
Cindy and Sandy are insurance producers. Although both sell auto insurance, Cindy sells policies for
several insurance companies, while Sandy sells policies for one company. Which statement is
correct?
-Cindy is an exclusive producer, and Sandy is an independent producer.
-Sandy is an exclusive producer, and Cindy is an independent producer.
-Both are exclusive producers.
-Both are independent producers. - Sandy is an exclusive producer, and Cindy is an independent
producer.
