KY Property & Casualty Insurance Exam
KY PROPERTY & CASUALTY
INSURANCE EXAM 2025 EXAM
Faulty wiring in a home is an example of a:
a) loss
b) peril
c) risk
d) hazard - Hazard
When a person buys insurance what method of handling risk has been undertaken?
a) transfer
b) reduction
c) avoidance
d) retention - Transfer
In property and casualty insurance, insurable interest must exist:
a) at the time a change is made to a policy
b) at the time of policy application
c) at the time of loss
d) at the time of policy solicitation - At the time of loss
All of the following actions by a person could be described as a risk avoidance
EXCEPT:
a) investing in the stock market
KY Property & Casualty Insurance Exam
, KY Property & Casualty Insurance Exam
b) refusing to scuba dive
c) never flying in an airplane
d) taking a flu shot each year - Investing in the stock market
Which of the following insurance options would be considered a risk-sharing
arrangement ?
a) stock
b) mutual
c) surplus lines
d) reciprocal - Reciprocal
Illegal use of narcotics would be an example of:
a) pure hazard
b) morale hazard
c) moral hazard
d) physical hazard - Moral hazard
What do individuals use to transfer their risk of loss to a larger group?
a) insurable interest
b) exposure
c) indemnity
d) insurance - Insurance
KY Property & Casualty Insurance Exam
KY PROPERTY & CASUALTY
INSURANCE EXAM 2025 EXAM
Faulty wiring in a home is an example of a:
a) loss
b) peril
c) risk
d) hazard - Hazard
When a person buys insurance what method of handling risk has been undertaken?
a) transfer
b) reduction
c) avoidance
d) retention - Transfer
In property and casualty insurance, insurable interest must exist:
a) at the time a change is made to a policy
b) at the time of policy application
c) at the time of loss
d) at the time of policy solicitation - At the time of loss
All of the following actions by a person could be described as a risk avoidance
EXCEPT:
a) investing in the stock market
KY Property & Casualty Insurance Exam
, KY Property & Casualty Insurance Exam
b) refusing to scuba dive
c) never flying in an airplane
d) taking a flu shot each year - Investing in the stock market
Which of the following insurance options would be considered a risk-sharing
arrangement ?
a) stock
b) mutual
c) surplus lines
d) reciprocal - Reciprocal
Illegal use of narcotics would be an example of:
a) pure hazard
b) morale hazard
c) moral hazard
d) physical hazard - Moral hazard
What do individuals use to transfer their risk of loss to a larger group?
a) insurable interest
b) exposure
c) indemnity
d) insurance - Insurance
KY Property & Casualty Insurance Exam
