Ohio Property and Casualty Exam Flashcards 2025
Update COMPREHENSIVE FREQUENTLY TESTED
QUESTIONS and verified answers WITH RATIONALES|
accurate answers|100% solved!!
What do individuals use to transfer their risk of loss to a larger group? -
(ANSWER)Insurance
What are the four elements of an insurance contract? - (ANSWER)Agreement
(Offer and Acceptance), Consideration, Competent parties, and legal purpose.
In the agent/insurer relationship, who is considered the principal? -
(ANSWER)Insurer
Insurance contracts are aleatory in nature. What does that mean? -
(ANSWER)Unequal values are exchanged between the parties to a contract.
What are the methods of managing risk? - (ANSWER)Avoidance, transfer, sharing,
retention, and reduction
In insurance contracts, when does acceptance usually occur? - (ANSWER)When
the insurer approves a prepaid application
Wagering on a sporting event is known as what type of risk? -
(ANSWER)Speculative
,A situation in which a person can experience only a loss and no gain presents
what type of risk? - (ANSWER)Pure Risk
What type of insurer is formed under the laws of another state? -
(ANSWER)Foreign
When would a misrepresentation on an insurance application be considered
fraud? - (ANSWER)When it is intentional and material
According to the Law of Agency, who represents the principal? - (ANSWER)Agent
or producer
What does indemnify mean in insurance? - (ANSWER)To restore an insured to the
same financial status as before a loss.
What is a warranty in an insurance contract? - (ANSWER)An absolutely true
statement upon which the validity of the policy depends.
What is the term for the causes of loss insured against in an insurance policy? -
(ANSWER)Peril
What is a risk? - (ANSWER)Uncertainty of loss
, If an insurer holds a Certificate of Authority, it is known as what type of insurer? -
(ANSWER)Authorized or Admitted
What is consideration in an insurance contract? - (ANSWER)Consideration is
something of value that each party gives to the other. Consideration on the part
of the insurer is binding.
What is consideration on the part of the insurer? - (ANSWER)A promise to pay in
the event of a loss
A tornado that destroys a property would be an example of what? -
(ANSWER)Peril
What does the term reasonable expectations mean in insurance? -
(ANSWER)Certain expectations for coverage that a reasonable person would have
based on sources other than just the policy language.
Conditions that increase the chance of loss are known as what? -
(ANSWER)Hazards
What provision states that if a policy allows for greater benefits than the financial
loss incurred, the insured may be compensated only for the amount lost? -
(ANSWER)Indemnity
What are the three types of hazards? - (ANSWER)Physical, moral, and morale
Update COMPREHENSIVE FREQUENTLY TESTED
QUESTIONS and verified answers WITH RATIONALES|
accurate answers|100% solved!!
What do individuals use to transfer their risk of loss to a larger group? -
(ANSWER)Insurance
What are the four elements of an insurance contract? - (ANSWER)Agreement
(Offer and Acceptance), Consideration, Competent parties, and legal purpose.
In the agent/insurer relationship, who is considered the principal? -
(ANSWER)Insurer
Insurance contracts are aleatory in nature. What does that mean? -
(ANSWER)Unequal values are exchanged between the parties to a contract.
What are the methods of managing risk? - (ANSWER)Avoidance, transfer, sharing,
retention, and reduction
In insurance contracts, when does acceptance usually occur? - (ANSWER)When
the insurer approves a prepaid application
Wagering on a sporting event is known as what type of risk? -
(ANSWER)Speculative
,A situation in which a person can experience only a loss and no gain presents
what type of risk? - (ANSWER)Pure Risk
What type of insurer is formed under the laws of another state? -
(ANSWER)Foreign
When would a misrepresentation on an insurance application be considered
fraud? - (ANSWER)When it is intentional and material
According to the Law of Agency, who represents the principal? - (ANSWER)Agent
or producer
What does indemnify mean in insurance? - (ANSWER)To restore an insured to the
same financial status as before a loss.
What is a warranty in an insurance contract? - (ANSWER)An absolutely true
statement upon which the validity of the policy depends.
What is the term for the causes of loss insured against in an insurance policy? -
(ANSWER)Peril
What is a risk? - (ANSWER)Uncertainty of loss
, If an insurer holds a Certificate of Authority, it is known as what type of insurer? -
(ANSWER)Authorized or Admitted
What is consideration in an insurance contract? - (ANSWER)Consideration is
something of value that each party gives to the other. Consideration on the part
of the insurer is binding.
What is consideration on the part of the insurer? - (ANSWER)A promise to pay in
the event of a loss
A tornado that destroys a property would be an example of what? -
(ANSWER)Peril
What does the term reasonable expectations mean in insurance? -
(ANSWER)Certain expectations for coverage that a reasonable person would have
based on sources other than just the policy language.
Conditions that increase the chance of loss are known as what? -
(ANSWER)Hazards
What provision states that if a policy allows for greater benefits than the financial
loss incurred, the insured may be compensated only for the amount lost? -
(ANSWER)Indemnity
What are the three types of hazards? - (ANSWER)Physical, moral, and morale
