Ohio Personal Lines (Insurance Exam) Exam NEWEST 2025
COMPLETE QUESTIONS AND CORRECT DETAILED ANSWERS
(VERIFIED ANSWERS) |ALREADY GRADED A+||BRAND NEW
VERSION!!
Alien - CORRECT ANSWER- Insurer oganized under the laws of a country outside of the United States
Domicile - CORRECT ANSWER- Refers to the state in which an insurer is incorporated
Express - CORRECT ANSWER- Authority that is written into the producers agency contract
Implied - CORRECT ANSWER- Authority that in which the public and the insurer assumes the agent
possesses
Apparent - CORRECT ANSWER- Authority created when the agent exceeds express authority and the
insurer does not respond
Stock Insurance Company - CORRECT ANSWER- Issues non-participating policies and is owned by
stockholders who received taxable corporate dividends as a return profit
Reinsurance - CORRECT ANSWER- The transfer of risk between insurance companies. The reinsurer
assumes some or all of the risks of the ceding, or primary, insurance company
Domestic - CORRECT ANSWER- Insurer organized under the laws of the resident state
,Foreign - CORRECT ANSWER- Insurer organized under the laws of another state within the United
States
FCRA - CORRECT ANSWER- Protects consumer privacy by ensuring that any data collected by an
insurer remains confidential, and is accurate, relevant, and used for a proper and specific purpose
Risk - CORRECT ANSWER- The uncertainty of a loss
Peril - CORRECT ANSWER- The cause of a loss
Hazard - CORRECT ANSWER- Increases the possibility of a loss
Indemnity - CORRECT ANSWER- Does not allow the insured to profit from a loss; instead, it restores
the insured to the same financial or economic condition the existed prior to loss
Adhesion - CORRECT ANSWER- One party (the insurer) prepares the contract and presents it to the
second party (the insured), who must accept it on a "take-it-or-leave-it" basis
Types Of Insurers - CORRECT ANSWER- Stock Insurers, Mutual Insurers, Reciprocal Insurers, and Self-
Insurer
Reduction - CORRECT ANSWER- Minimizing the chance of a loss without eliminating the risk
altogether
Retention - CORRECT ANSWER- Assuming responsibility for a loss
Conditional - CORRECT ANSWER- A contract that requires that both parties perform certain duties
Acutuary - CORRECT ANSWER- Determines the probability of loss and sets premium rates
, Physical - CORRECT ANSWER- A hazard that occurs when a physical condition increases the
probability of loss; use, condition, or occupancy of property
Moral - CORRECT ANSWER- A hazard that occurs when dishonest tendencies increase the probability
of a loss; certain characteristics and behaviors of people
Morale - CORRECT ANSWER- A hazard that occurs when a persons attitude increases the probability
of a loss
Speculative Risk - CORRECT ANSWER- Situations where there is a chance or possibility for loss, no loss
or gain
Pure Risk - CORRECT ANSWER- Situations where there is no chance for gain, only loss. The only risk
that can be insured
Misreprensentation - CORRECT ANSWER- False statement contained in the insured's application and
does not usually void coverage or the policy
Fraud - CORRECT ANSWER- An intentional deception of the truth in order to induce another party
with something of value or to surrender a legal right
Concealment - CORRECT ANSWER- The willful holding back or secretion of material facts pertinent to
the issuance of insurance or claim
Reinsurance - CORRECT ANSWER- A contract between the insuring company and the reinsurer, and
does not involve the insured
COMPLETE QUESTIONS AND CORRECT DETAILED ANSWERS
(VERIFIED ANSWERS) |ALREADY GRADED A+||BRAND NEW
VERSION!!
Alien - CORRECT ANSWER- Insurer oganized under the laws of a country outside of the United States
Domicile - CORRECT ANSWER- Refers to the state in which an insurer is incorporated
Express - CORRECT ANSWER- Authority that is written into the producers agency contract
Implied - CORRECT ANSWER- Authority that in which the public and the insurer assumes the agent
possesses
Apparent - CORRECT ANSWER- Authority created when the agent exceeds express authority and the
insurer does not respond
Stock Insurance Company - CORRECT ANSWER- Issues non-participating policies and is owned by
stockholders who received taxable corporate dividends as a return profit
Reinsurance - CORRECT ANSWER- The transfer of risk between insurance companies. The reinsurer
assumes some or all of the risks of the ceding, or primary, insurance company
Domestic - CORRECT ANSWER- Insurer organized under the laws of the resident state
,Foreign - CORRECT ANSWER- Insurer organized under the laws of another state within the United
States
FCRA - CORRECT ANSWER- Protects consumer privacy by ensuring that any data collected by an
insurer remains confidential, and is accurate, relevant, and used for a proper and specific purpose
Risk - CORRECT ANSWER- The uncertainty of a loss
Peril - CORRECT ANSWER- The cause of a loss
Hazard - CORRECT ANSWER- Increases the possibility of a loss
Indemnity - CORRECT ANSWER- Does not allow the insured to profit from a loss; instead, it restores
the insured to the same financial or economic condition the existed prior to loss
Adhesion - CORRECT ANSWER- One party (the insurer) prepares the contract and presents it to the
second party (the insured), who must accept it on a "take-it-or-leave-it" basis
Types Of Insurers - CORRECT ANSWER- Stock Insurers, Mutual Insurers, Reciprocal Insurers, and Self-
Insurer
Reduction - CORRECT ANSWER- Minimizing the chance of a loss without eliminating the risk
altogether
Retention - CORRECT ANSWER- Assuming responsibility for a loss
Conditional - CORRECT ANSWER- A contract that requires that both parties perform certain duties
Acutuary - CORRECT ANSWER- Determines the probability of loss and sets premium rates
, Physical - CORRECT ANSWER- A hazard that occurs when a physical condition increases the
probability of loss; use, condition, or occupancy of property
Moral - CORRECT ANSWER- A hazard that occurs when dishonest tendencies increase the probability
of a loss; certain characteristics and behaviors of people
Morale - CORRECT ANSWER- A hazard that occurs when a persons attitude increases the probability
of a loss
Speculative Risk - CORRECT ANSWER- Situations where there is a chance or possibility for loss, no loss
or gain
Pure Risk - CORRECT ANSWER- Situations where there is no chance for gain, only loss. The only risk
that can be insured
Misreprensentation - CORRECT ANSWER- False statement contained in the insured's application and
does not usually void coverage or the policy
Fraud - CORRECT ANSWER- An intentional deception of the truth in order to induce another party
with something of value or to surrender a legal right
Concealment - CORRECT ANSWER- The willful holding back or secretion of material facts pertinent to
the issuance of insurance or claim
Reinsurance - CORRECT ANSWER- A contract between the insuring company and the reinsurer, and
does not involve the insured
