Arkansas Property & Casualty
Practice Exam Question & Answers
2025
Pay the claims covered under the policy. - CORRECT ANSWERS
✔✔A primary obligation of an insurance company is to:
Accumulating Risk - CORRECT ANSWERS ✔✔Which of the following
is not a reaction to risk?
An increase in the possibility that a loss may occur. - CORRECT
ANSWERS ✔✔Which of the following describes a hazard?
Requiring the policyholder to carry insurance to value. - CORRECT
ANSWERS ✔✔Which of the following best meets the test of the
"Principle of Indemnity"?
Overpayment of a claim - CORRECT ANSWERS ✔✔The principle of
indemnity is designed to avoid:
Flood - CORRECT ANSWERS ✔✔Which of the following losses
would not be covered on an "all-risk" crop insurance policy?
Crime Insurance - CORRECT ANSWERS ✔✔The Fair Plan offers
what kind of coverage for individuals and businesses in high hazard
areas?
,Arkansas Property & Casualty
Practice Exam Question & Answers
2025
Embezzlement - CORRECT ANSWERS ✔✔An agent who collects
premiums and converts those premiums to his own personal use is
guilty of:
Deductible - CORRECT ANSWERS ✔✔Which of the following terms
describes what is subtracted from a claim payment to the insured?
Parol Evidence rule - CORRECT ANSWERS ✔✔Oral discussion prior
to the development of a written contract can not be used to extend the
terms of the final document. This because of the:
The agent must be appointed by each company. - CORRECT ANSWERS
✔✔To be licensed by more than one insurance company:
The covered perils - CORRECT ANSWERS ✔✔The basic difference
between the DP-1 and the DP-3 is:
The client - CORRECT ANSWERS ✔✔Which of the following has the
unlimited right to cancel an insurance policy?
The trigger - CORRECT ANSWERS ✔✔The main difference between
a claims made liability coverage and an occurence for liability coverage
is:
, Arkansas Property & Casualty
Practice Exam Question & Answers
2025
Endorsement - CORRECT ANSWERS ✔✔What is used to change an
insurance policy from its original wording?
A claim by the mortgagee can be denied. - CORRECT ANSWERS
✔✔An insured hires someone to burn his home. The insurance
company can prove this fact. All of the following are true except:
Surplus Lines Insurance - CORRECT ANSWERS ✔✔A certificate of
authority is not required for transacting:
Retained Limit - CORRECT ANSWERS ✔✔An umbrella liability policy
has a form of deductible called:
The insured building is vacant for over 60 days. - CORRECT ANSWERS
✔✔Coverage against loss by some perils (vandalism, theft, etc.)
under the Building and Personal Property Coverage form is suspended
if:
A retired person. - CORRECT ANSWERS ✔✔Which of the following
may be competent?
Practice Exam Question & Answers
2025
Pay the claims covered under the policy. - CORRECT ANSWERS
✔✔A primary obligation of an insurance company is to:
Accumulating Risk - CORRECT ANSWERS ✔✔Which of the following
is not a reaction to risk?
An increase in the possibility that a loss may occur. - CORRECT
ANSWERS ✔✔Which of the following describes a hazard?
Requiring the policyholder to carry insurance to value. - CORRECT
ANSWERS ✔✔Which of the following best meets the test of the
"Principle of Indemnity"?
Overpayment of a claim - CORRECT ANSWERS ✔✔The principle of
indemnity is designed to avoid:
Flood - CORRECT ANSWERS ✔✔Which of the following losses
would not be covered on an "all-risk" crop insurance policy?
Crime Insurance - CORRECT ANSWERS ✔✔The Fair Plan offers
what kind of coverage for individuals and businesses in high hazard
areas?
,Arkansas Property & Casualty
Practice Exam Question & Answers
2025
Embezzlement - CORRECT ANSWERS ✔✔An agent who collects
premiums and converts those premiums to his own personal use is
guilty of:
Deductible - CORRECT ANSWERS ✔✔Which of the following terms
describes what is subtracted from a claim payment to the insured?
Parol Evidence rule - CORRECT ANSWERS ✔✔Oral discussion prior
to the development of a written contract can not be used to extend the
terms of the final document. This because of the:
The agent must be appointed by each company. - CORRECT ANSWERS
✔✔To be licensed by more than one insurance company:
The covered perils - CORRECT ANSWERS ✔✔The basic difference
between the DP-1 and the DP-3 is:
The client - CORRECT ANSWERS ✔✔Which of the following has the
unlimited right to cancel an insurance policy?
The trigger - CORRECT ANSWERS ✔✔The main difference between
a claims made liability coverage and an occurence for liability coverage
is:
, Arkansas Property & Casualty
Practice Exam Question & Answers
2025
Endorsement - CORRECT ANSWERS ✔✔What is used to change an
insurance policy from its original wording?
A claim by the mortgagee can be denied. - CORRECT ANSWERS
✔✔An insured hires someone to burn his home. The insurance
company can prove this fact. All of the following are true except:
Surplus Lines Insurance - CORRECT ANSWERS ✔✔A certificate of
authority is not required for transacting:
Retained Limit - CORRECT ANSWERS ✔✔An umbrella liability policy
has a form of deductible called:
The insured building is vacant for over 60 days. - CORRECT ANSWERS
✔✔Coverage against loss by some perils (vandalism, theft, etc.)
under the Building and Personal Property Coverage form is suspended
if:
A retired person. - CORRECT ANSWERS ✔✔Which of the following
may be competent?
