KY Property & Casualty Insurance Exam Questions With Correct Answers

KY Property & Casualty Insurance Exam
Questions With Correct Answers

Faulty wiring in a home is an example of a:
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a) loss
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b) peril
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c) risk
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d) hazard - CORRECT ANSWER✔✔-Hazard
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When a person buys insurance what method of handling risk has been
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undertaken?
a) transfer
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b) reduction
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c) avoidance
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d) retention - CORRECT ANSWER✔✔-Transfer
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In property and casualty insurance, insurable interest must exist:
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a) at the time a change is made to a policy
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b) at the time of policy application
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c) at the time of loss
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d) at the time of policy solicitation - CORRECT ANSWER✔✔-At the time of loss
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, All of the following actions by a person could be described as a risk avoidance
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EXCEPT:
a) investing in the stock market
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b) refusing to scuba dive
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c) never flying in an airplane
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d) taking a flu shot each year - CORRECT ANSWER✔✔-Investing in the stock
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market


Which of the following insurance options would be considered a risk-sharing
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arrangement ? |




a) stock
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b) mutual
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c) surplus lines
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d) reciprocal - CORRECT ANSWER✔✔-Reciprocal
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Illegal use of narcotics would be an example of:
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a) pure hazard
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b) morale hazard
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c) moral hazard
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d) physical hazard - CORRECT ANSWER✔✔-Moral hazard
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What do individuals use to transfer their risk of loss to a larger group?
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a) insurable interest
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b) exposure
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