1|Page
MARYLAND PROPERTY AND CASUALTY
INSURANCE EXAM ACTUAL EXAM WITH
QUESTIONS AND 100% CORRECT ANSWERS||
LATEST AND COMPLETE VERSION 2025-2026 WITH
EXPERT VERIFIED SOLUTIONS|| ASSURED PASS
What is the chance of a loss? - ANSWER: Risk
Insurance is designed to protect individuals from____ - ANSWER: Loss
An individual who is indifferent to a loss is____ - ANSWER: Morale Hazard
What is a cause of loss? - ANSWER: Peril
John has a homeowners policy with a replacement cost of $250,000 and a
deductible of $1,000. His house was destroyed by a hurricane, what does this
descrbie? - ANSWER: Peril
Which of the following is risk retention?
A. Joe pays his monthly premium
B. An insurer pays John's disability benefit
C. ABC company decides to self fund the health insurance
D. Insurer A buys a Reinsurance policy from insurer B. - ANSWER: C. Self
insuring or paying your deductible is a form of Risk Retention.
Joe had an active job where he moved everyday. But now he has a desk job where
he sits all day. When Joe gets home he walks 2 miles and stops eating sweets.
How is Joe handling his desk job? - ANSWER: Risk Reduction
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What is true regarding an insurable risk? - ANSWER: The loss must be
calculatable
What helps an insurance company predict which types of individuals in the U.S
will die this year? - ANSWER: Law of Large Numbers
Which term best associated with reinsurance? - ANSWER: Catastrophic
I live in maryland and buy a policy from Maryland life. What type of insurer in
Maryland Life? - ANSWER: Domestic Insurer
I live in Maryland and buy a policy from New York? What type of insurance in
this? - ANSWER: Foreign Insurer
I live in Maryland and buy a policy from SunLife Canada. What type of insurance
is this? - ANSWER: Alien Insurer
I live in Maryland and buy a policy from Purteo Rico Life. What type of insurance
is this? - ANSWER: Foreign Insurer
Whats an Independent rating service? - ANSWER: They determine the financial
stability of all insurance companies
All of the following types of advertising except:
A. TV Ad
B. Radio Ad
C. Newspaper ad
MARYLAND PROPERTY AND CASUALTY
INSURANCE EXAM ACTUAL EXAM WITH
QUESTIONS AND 100% CORRECT ANSWERS||
LATEST AND COMPLETE VERSION 2025-2026 WITH
EXPERT VERIFIED SOLUTIONS|| ASSURED PASS
What is the chance of a loss? - ANSWER: Risk
Insurance is designed to protect individuals from____ - ANSWER: Loss
An individual who is indifferent to a loss is____ - ANSWER: Morale Hazard
What is a cause of loss? - ANSWER: Peril
John has a homeowners policy with a replacement cost of $250,000 and a
deductible of $1,000. His house was destroyed by a hurricane, what does this
descrbie? - ANSWER: Peril
Which of the following is risk retention?
A. Joe pays his monthly premium
B. An insurer pays John's disability benefit
C. ABC company decides to self fund the health insurance
D. Insurer A buys a Reinsurance policy from insurer B. - ANSWER: C. Self
insuring or paying your deductible is a form of Risk Retention.
Joe had an active job where he moved everyday. But now he has a desk job where
he sits all day. When Joe gets home he walks 2 miles and stops eating sweets.
How is Joe handling his desk job? - ANSWER: Risk Reduction
, 2|Page
What is true regarding an insurable risk? - ANSWER: The loss must be
calculatable
What helps an insurance company predict which types of individuals in the U.S
will die this year? - ANSWER: Law of Large Numbers
Which term best associated with reinsurance? - ANSWER: Catastrophic
I live in maryland and buy a policy from Maryland life. What type of insurer in
Maryland Life? - ANSWER: Domestic Insurer
I live in Maryland and buy a policy from New York? What type of insurance in
this? - ANSWER: Foreign Insurer
I live in Maryland and buy a policy from SunLife Canada. What type of insurance
is this? - ANSWER: Alien Insurer
I live in Maryland and buy a policy from Purteo Rico Life. What type of insurance
is this? - ANSWER: Foreign Insurer
Whats an Independent rating service? - ANSWER: They determine the financial
stability of all insurance companies
All of the following types of advertising except:
A. TV Ad
B. Radio Ad
C. Newspaper ad
