PROPERTY AND CASUALTY INSURANCE TEST
QUESTION ACTUAL 2026 QUESTIONS AND
VERIFIED ANSWERS
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Terms in this set (301)
Specific insurance This type of insurance designates a particular
item to be insured
Blanket insurance This type of insurance covers more than one item
of property at a single location or one more
items of property at multiple locations.
Speculative possibility of both gain and loss. Not insurable.
Pure only the possibility of loss. Insurable.
What are the 5 methods of avoid, control, retain, and transfer risk.
managing or handling risk?
Hazard A condition or situation which increases the
chance for loss
, Physical Hazards a hazard that arises from the condition,
occupancy, or use of the property itself.
ex: skateboard left on the steps
Moral Hazards when an individual through carelessness or by
irresponsible actions can increase the possibly
for a loss.
ex: person who drives carelessly just because
they know they are insured.
Morale Hazards when a person might create a loss situation on
purpose just to collect from the insurance
company.
ex: Prearranged, faked theft of someone's old
vehicle so they can get an insurance payout to
buy a new vehicle.
Replacement Cost The amount of money it would take to replace a
damaged or destroyed item with one of like kind
and quality AT THE TIME OF LOSS. No deduction
for depreciation.
Actual Cash Value (ACV) Replacement Cost, minus depreciation.
Pair and Set Clause Loss to one item of a pair or set does not
constitute loss to the entire pair or set.
QUESTION ACTUAL 2026 QUESTIONS AND
VERIFIED ANSWERS
Save
Terms in this set (301)
Specific insurance This type of insurance designates a particular
item to be insured
Blanket insurance This type of insurance covers more than one item
of property at a single location or one more
items of property at multiple locations.
Speculative possibility of both gain and loss. Not insurable.
Pure only the possibility of loss. Insurable.
What are the 5 methods of avoid, control, retain, and transfer risk.
managing or handling risk?
Hazard A condition or situation which increases the
chance for loss
, Physical Hazards a hazard that arises from the condition,
occupancy, or use of the property itself.
ex: skateboard left on the steps
Moral Hazards when an individual through carelessness or by
irresponsible actions can increase the possibly
for a loss.
ex: person who drives carelessly just because
they know they are insured.
Morale Hazards when a person might create a loss situation on
purpose just to collect from the insurance
company.
ex: Prearranged, faked theft of someone's old
vehicle so they can get an insurance payout to
buy a new vehicle.
Replacement Cost The amount of money it would take to replace a
damaged or destroyed item with one of like kind
and quality AT THE TIME OF LOSS. No deduction
for depreciation.
Actual Cash Value (ACV) Replacement Cost, minus depreciation.
Pair and Set Clause Loss to one item of a pair or set does not
constitute loss to the entire pair or set.
