Louisiana Property and Casualty Exam Questions and
Correct Answers | Latest Update 2026/2027 | Graded
A+ | Guaranteed Success.
Because an insurer writes the policy language and the insured has little or no
control over the content, any ambiguity in the wording is usually resolved in favor
of the insured. Because the design and wording of a policy are in the hands of the
insurer, insurance policies are said to be:
Ans: Contracts of adhesion
The authority of an insurance producer that is spelled out in the written words of
the agency contract between the producer and the insurer is:
Ans: Express Authority
Insurable risks must involve:
Ans: The possibility of loss only
The uncertainty about loss that exists whenever more than one outcome is
possible is called:
Ans: Risk
In property and casualty and in medical-expense insurance, the principle of
making someone "whole" again after a loss by paying only for actual losses is
called:
Ans: Indemnity
,The Law of Large Numbers states that:
Ans: The predictions become more accurate as the number of units being
considered increases
In the formation of a legal contract, each party must give something of value.
Under contract law, this is referred to as:
Ans: Consideration
In which company may policyholders receive policy dividends when there is a
profit?
Ans: Mutual
If an insurance company transfers part of their risk to another insurer, that other
insurer is known as a?
Ans: Reinsurer
An applicant for insurance must accept the entire policy as written or none of it
under the Doctrine of __________.
Ans: Adhesion
Statements provided by an applicant for insurance are considered to be:
Ans: Representations
A property and casualty insurance producer frequently has the authority to
provide temporary insurance coverage known as a:
,Ans: Binder
Insurance is a means of:
Ans: Transferring risk
In the property and casualty insurance field, "insurable interest" must exist:
Ans: At the time of application and at the time of loss
In which company may stockholders share in the profits and losses of the insurer?
Ans: Stock
Some producers supervise all of an insurance company's business within a
specified territory. These producers appoint other producers, supervise their
business, and receive an overriding commission on that business. What is the
formal name for this type of producer?
Ans: General agent
Failure to disclose known facts when filling out an insurance application is an act
of:
Ans: Concealment
Under contract law, the actions by a party may intentionally and voluntarily give
up a known right. When this occurs, it is known as:
Ans: Waiver
, What is the name of the type of insurer consisting of an unincorporated group of
persons who provide insurance among themselves through an inter-exchange of
indemnity agreements?
Ans: Reciprocal insurer
When a property insurance applicant makes a statement on an application that
becomes part of the contract and includes a promise by the insured, the
statement is considered to be a:
Ans: Warranty
A producer is a representative of:
Ans: The Insurance Company
A contract where only one party, the insurer, makes an enforceable promise is said
to be:
Ans: Unilateral
An insurance company owned by its policyholders, who receive a return of unused
premiums in the form of policy dividends, is a(n):
Ans: Mutual company
Apparent authority of an insurance producer is the authority:
Ans: Acts of the insurer may lead the public to believe the producer has
All of the following are true about "insurance" EXCEPT:
Ans: It is a form of gambling because it may or may not pay off
Correct Answers | Latest Update 2026/2027 | Graded
A+ | Guaranteed Success.
Because an insurer writes the policy language and the insured has little or no
control over the content, any ambiguity in the wording is usually resolved in favor
of the insured. Because the design and wording of a policy are in the hands of the
insurer, insurance policies are said to be:
Ans: Contracts of adhesion
The authority of an insurance producer that is spelled out in the written words of
the agency contract between the producer and the insurer is:
Ans: Express Authority
Insurable risks must involve:
Ans: The possibility of loss only
The uncertainty about loss that exists whenever more than one outcome is
possible is called:
Ans: Risk
In property and casualty and in medical-expense insurance, the principle of
making someone "whole" again after a loss by paying only for actual losses is
called:
Ans: Indemnity
,The Law of Large Numbers states that:
Ans: The predictions become more accurate as the number of units being
considered increases
In the formation of a legal contract, each party must give something of value.
Under contract law, this is referred to as:
Ans: Consideration
In which company may policyholders receive policy dividends when there is a
profit?
Ans: Mutual
If an insurance company transfers part of their risk to another insurer, that other
insurer is known as a?
Ans: Reinsurer
An applicant for insurance must accept the entire policy as written or none of it
under the Doctrine of __________.
Ans: Adhesion
Statements provided by an applicant for insurance are considered to be:
Ans: Representations
A property and casualty insurance producer frequently has the authority to
provide temporary insurance coverage known as a:
,Ans: Binder
Insurance is a means of:
Ans: Transferring risk
In the property and casualty insurance field, "insurable interest" must exist:
Ans: At the time of application and at the time of loss
In which company may stockholders share in the profits and losses of the insurer?
Ans: Stock
Some producers supervise all of an insurance company's business within a
specified territory. These producers appoint other producers, supervise their
business, and receive an overriding commission on that business. What is the
formal name for this type of producer?
Ans: General agent
Failure to disclose known facts when filling out an insurance application is an act
of:
Ans: Concealment
Under contract law, the actions by a party may intentionally and voluntarily give
up a known right. When this occurs, it is known as:
Ans: Waiver
, What is the name of the type of insurer consisting of an unincorporated group of
persons who provide insurance among themselves through an inter-exchange of
indemnity agreements?
Ans: Reciprocal insurer
When a property insurance applicant makes a statement on an application that
becomes part of the contract and includes a promise by the insured, the
statement is considered to be a:
Ans: Warranty
A producer is a representative of:
Ans: The Insurance Company
A contract where only one party, the insurer, makes an enforceable promise is said
to be:
Ans: Unilateral
An insurance company owned by its policyholders, who receive a return of unused
premiums in the form of policy dividends, is a(n):
Ans: Mutual company
Apparent authority of an insurance producer is the authority:
Ans: Acts of the insurer may lead the public to believe the producer has
All of the following are true about "insurance" EXCEPT:
Ans: It is a form of gambling because it may or may not pay off
