Missouri Property and Casualty |\ |\ |\ |\
Insurance exam questions with answers |\ |\ |\ |\
Risk - CORRECT ANSWERS ✔✔The chance or uncertainty
|\ |\ |\ |\ |\ |\ |\ |\
of loss.
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Exposure - CORRECT ANSWERS ✔✔A condition or |\ |\ |\ |\ |\ |\ |\
situation that presents a possibility of loss.
|\ |\ |\ |\ |\ |\
Ways to manage risk - CORRECT ANSWERS ✔✔Avoid Risk
|\ |\ |\ |\ |\ |\ |\ |\
control risk |\
retain a risk |\ |\
transfer a risk |\ |\
control risk - CORRECT ANSWERS ✔✔techniques that limit
|\ |\ |\ |\ |\ |\ |\
loss severity come under the heading of risk reduction
|\ |\ |\ |\ |\ |\ |\ |\ |\
retain a risk - CORRECT ANSWERS ✔✔if any loss occurs,
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
they will pay for it themselves
|\ |\ |\ |\ |\
can be intentional or unintentional
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Transfer a risk - CORRECT ANSWERS ✔✔Insurance
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,hold harmless agreement
|\ |\
hold harmless agreement - CORRECT ANSWERS ✔✔a
|\ |\ |\ |\ |\ |\ |\
contractual arrangement where one party assumes the
|\ |\ |\ |\ |\ |\ |\
liability of a situation and relieves the other party of
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
responsibility.
Purpose of Insurance - CORRECT ANSWERS ✔✔to transfer
|\ |\ |\ |\ |\ |\ |\ |\
risk
insurance - CORRECT ANSWERS ✔✔a contract or device
|\ |\ |\ |\ |\ |\ |\ |\
for transferring risk from a person, business, or
|\ |\ |\ |\ |\ |\ |\ |\
organization to an insurance company that agrees, in |\ |\ |\ |\ |\ |\ |\ |\
exchange for a premium, to pay for losses through an
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
accumulation of premiums |\ |\
Elements of Insurability - CORRECT ANSWERS ✔✔Pure
|\ |\ |\ |\ |\ |\ |\
Risk
Insurable Interest |\
Definite
Unexpected
Financial Hardship |\
Calculable
Affordable
,Losses are Predictable |\ |\
Adequate Spread of Risk |\ |\ |\
Speculative risks - CORRECT ANSWERS ✔✔risks in which |\ |\ |\ |\ |\ |\ |\ |\
there exists both the possibility of gain and the possibility
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
of loss
|\
pure risks - CORRECT ANSWERS ✔✔involve only the
|\ |\ |\ |\ |\ |\ |\ |\
possibility of loss |\ |\
insurable interest - CORRECT ANSWERS ✔✔before you
|\ |\ |\ |\ |\ |\ |\
can benefit from insurance, you must have a chance of
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
financial loss or a financial interest in the property
|\ |\ |\ |\ |\ |\ |\ |\
Definite - CORRECT ANSWERS ✔✔Risk of loss must be
|\ |\ |\ |\ |\ |\ |\ |\ |\
defined as to time and loss and be difficult to counterfeit
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
or falsify
|\
Unexpected - CORRECT ANSWERS ✔✔If results are |\ |\ |\ |\ |\ |\ |\
expected then it doesn't qualify as a risk.
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Financial Hardship - CORRECT ANSWERS ✔✔Risk must be
|\ |\ |\ |\ |\ |\ |\ |\
large enough for financial hardship for the individual
|\ |\ |\ |\ |\ |\ |\ |\
involved.
, Calculable - CORRECT ANSWERS ✔✔Must be able to be |\ |\ |\ |\ |\ |\ |\ |\ |\
assigned a financial value. |\ |\ |\
Affordable - CORRECT ANSWERS ✔✔The cost of the |\ |\ |\ |\ |\ |\ |\ |\
insurance must be affordable to the consumer and be
|\ |\ |\ |\ |\ |\ |\ |\ |\
able to cover an unexpected loss.
|\ |\ |\ |\ |\
Losses are Predictable - CORRECT ANSWERS ✔✔There
|\ |\ |\ |\ |\ |\ |\
must be a large number of persons with similar potential
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
loss available for the losses to become predictable.
|\ |\ |\ |\ |\ |\ |\
Adequate spread of risk - CORRECT ANSWERS ✔✔Must|\ |\ |\ |\ |\ |\ |\ |\
not happen to a large number of the insured at the same
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
time. Not insuring every person that would be effected by
|\ |\ |\ |\ |\ |\ |\ |\ |\
the same risk.
|\ |\ |\
Peril - CORRECT ANSWERS ✔✔the cause of loss
|\ |\ |\ |\ |\ |\ |\
Hazard - CORRECT ANSWERS ✔✔anything that increases
|\ |\ |\ |\ |\ |\ |\
the chance of loss
|\ |\ |\
physical hazard - CORRECT ANSWERS ✔✔a hazard that
|\ |\ |\ |\ |\ |\ |\ |\
arises from the condition, occupancy, or use of the
|\ |\ |\ |\ |\ |\ |\ |\ |\
property itself |\
Insurance exam questions with answers |\ |\ |\ |\
Risk - CORRECT ANSWERS ✔✔The chance or uncertainty
|\ |\ |\ |\ |\ |\ |\ |\
of loss.
|\
Exposure - CORRECT ANSWERS ✔✔A condition or |\ |\ |\ |\ |\ |\ |\
situation that presents a possibility of loss.
|\ |\ |\ |\ |\ |\
Ways to manage risk - CORRECT ANSWERS ✔✔Avoid Risk
|\ |\ |\ |\ |\ |\ |\ |\
control risk |\
retain a risk |\ |\
transfer a risk |\ |\
control risk - CORRECT ANSWERS ✔✔techniques that limit
|\ |\ |\ |\ |\ |\ |\
loss severity come under the heading of risk reduction
|\ |\ |\ |\ |\ |\ |\ |\ |\
retain a risk - CORRECT ANSWERS ✔✔if any loss occurs,
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
they will pay for it themselves
|\ |\ |\ |\ |\
can be intentional or unintentional
|\ |\ |\ |\
Transfer a risk - CORRECT ANSWERS ✔✔Insurance
|\ |\ |\ |\ |\ |\
,hold harmless agreement
|\ |\
hold harmless agreement - CORRECT ANSWERS ✔✔a
|\ |\ |\ |\ |\ |\ |\
contractual arrangement where one party assumes the
|\ |\ |\ |\ |\ |\ |\
liability of a situation and relieves the other party of
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
responsibility.
Purpose of Insurance - CORRECT ANSWERS ✔✔to transfer
|\ |\ |\ |\ |\ |\ |\ |\
risk
insurance - CORRECT ANSWERS ✔✔a contract or device
|\ |\ |\ |\ |\ |\ |\ |\
for transferring risk from a person, business, or
|\ |\ |\ |\ |\ |\ |\ |\
organization to an insurance company that agrees, in |\ |\ |\ |\ |\ |\ |\ |\
exchange for a premium, to pay for losses through an
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
accumulation of premiums |\ |\
Elements of Insurability - CORRECT ANSWERS ✔✔Pure
|\ |\ |\ |\ |\ |\ |\
Risk
Insurable Interest |\
Definite
Unexpected
Financial Hardship |\
Calculable
Affordable
,Losses are Predictable |\ |\
Adequate Spread of Risk |\ |\ |\
Speculative risks - CORRECT ANSWERS ✔✔risks in which |\ |\ |\ |\ |\ |\ |\ |\
there exists both the possibility of gain and the possibility
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
of loss
|\
pure risks - CORRECT ANSWERS ✔✔involve only the
|\ |\ |\ |\ |\ |\ |\ |\
possibility of loss |\ |\
insurable interest - CORRECT ANSWERS ✔✔before you
|\ |\ |\ |\ |\ |\ |\
can benefit from insurance, you must have a chance of
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
financial loss or a financial interest in the property
|\ |\ |\ |\ |\ |\ |\ |\
Definite - CORRECT ANSWERS ✔✔Risk of loss must be
|\ |\ |\ |\ |\ |\ |\ |\ |\
defined as to time and loss and be difficult to counterfeit
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
or falsify
|\
Unexpected - CORRECT ANSWERS ✔✔If results are |\ |\ |\ |\ |\ |\ |\
expected then it doesn't qualify as a risk.
|\ |\ |\ |\ |\ |\ |\
Financial Hardship - CORRECT ANSWERS ✔✔Risk must be
|\ |\ |\ |\ |\ |\ |\ |\
large enough for financial hardship for the individual
|\ |\ |\ |\ |\ |\ |\ |\
involved.
, Calculable - CORRECT ANSWERS ✔✔Must be able to be |\ |\ |\ |\ |\ |\ |\ |\ |\
assigned a financial value. |\ |\ |\
Affordable - CORRECT ANSWERS ✔✔The cost of the |\ |\ |\ |\ |\ |\ |\ |\
insurance must be affordable to the consumer and be
|\ |\ |\ |\ |\ |\ |\ |\ |\
able to cover an unexpected loss.
|\ |\ |\ |\ |\
Losses are Predictable - CORRECT ANSWERS ✔✔There
|\ |\ |\ |\ |\ |\ |\
must be a large number of persons with similar potential
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
loss available for the losses to become predictable.
|\ |\ |\ |\ |\ |\ |\
Adequate spread of risk - CORRECT ANSWERS ✔✔Must|\ |\ |\ |\ |\ |\ |\ |\
not happen to a large number of the insured at the same
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
time. Not insuring every person that would be effected by
|\ |\ |\ |\ |\ |\ |\ |\ |\
the same risk.
|\ |\ |\
Peril - CORRECT ANSWERS ✔✔the cause of loss
|\ |\ |\ |\ |\ |\ |\
Hazard - CORRECT ANSWERS ✔✔anything that increases
|\ |\ |\ |\ |\ |\ |\
the chance of loss
|\ |\ |\
physical hazard - CORRECT ANSWERS ✔✔a hazard that
|\ |\ |\ |\ |\ |\ |\ |\
arises from the condition, occupancy, or use of the
|\ |\ |\ |\ |\ |\ |\ |\ |\
property itself |\
