KY Property & Casualty Insurance Exam EXAM PRACTICE
QUESTIONS AND CORRECT ANSWERS (VERIFIED ANSWERS) PLUS
RATIONALES 2026-2027 Q&A | INSTANT DOWNLOAD PDF
What type of insurance policy insures against all risks of loss that are not
specifically excluded by the policy?
a) binder policy
b) named peril policy
c) open peril policy
d) specified peril policy
Open peril policy
Insurance is the transfer of:
a) peril
b) risk
c) loss
d) hazard
Risk
Which one of the following is NOT an element of insurability?
a) loss must be expected
b) risk of loss is speculative
c) loss is calculable
d) risk of loss must represent a financial hardship
Risk of loss is speculative
,All of the following are examples of hazards EXCEPT:
a) a fire in the kitchen of a home
b) trash or debris in the basement of a home
c) faulty wiring in a home
d) broken step or hand railing on the porch
A fire in the kitchen of a home
What hazard would you be concerned about if you lived next to an explosive
contractor?
a) morale
b) dangerous
c) physical
d) moral
Physical
When a homeowner purchases insurance on his home, what risk management
technique is he or she practicing?
a) retention
b) transfer
c) avoidance
d) sharing
Transfer
, Following a career change, an insured is no longer required to perform many
physical activities, so he has implemented a program where he walks and jogs
for 45 minutes
each morning. The insured also eliminated most fatty foods from his diet. Which
method of dealing with risk does this scenario describe?
a) transfer
b) avoidance
c) retention
d) reduction
Reduction
Rates that are established based on the similarities of the risk with other risks
are known as:
a) experience rates
b) "A" rates
c) merit rates
d) manual rates
Manual Rates
QUESTIONS AND CORRECT ANSWERS (VERIFIED ANSWERS) PLUS
RATIONALES 2026-2027 Q&A | INSTANT DOWNLOAD PDF
What type of insurance policy insures against all risks of loss that are not
specifically excluded by the policy?
a) binder policy
b) named peril policy
c) open peril policy
d) specified peril policy
Open peril policy
Insurance is the transfer of:
a) peril
b) risk
c) loss
d) hazard
Risk
Which one of the following is NOT an element of insurability?
a) loss must be expected
b) risk of loss is speculative
c) loss is calculable
d) risk of loss must represent a financial hardship
Risk of loss is speculative
,All of the following are examples of hazards EXCEPT:
a) a fire in the kitchen of a home
b) trash or debris in the basement of a home
c) faulty wiring in a home
d) broken step or hand railing on the porch
A fire in the kitchen of a home
What hazard would you be concerned about if you lived next to an explosive
contractor?
a) morale
b) dangerous
c) physical
d) moral
Physical
When a homeowner purchases insurance on his home, what risk management
technique is he or she practicing?
a) retention
b) transfer
c) avoidance
d) sharing
Transfer
, Following a career change, an insured is no longer required to perform many
physical activities, so he has implemented a program where he walks and jogs
for 45 minutes
each morning. The insured also eliminated most fatty foods from his diet. Which
method of dealing with risk does this scenario describe?
a) transfer
b) avoidance
c) retention
d) reduction
Reduction
Rates that are established based on the similarities of the risk with other risks
are known as:
a) experience rates
b) "A" rates
c) merit rates
d) manual rates
Manual Rates
