PROPERTY AND CASUALTY
INSURANCE PRACTICE
TEST
QUESTIONS AND ANSWERS
A self-insurer deals with risk by:
-Transferring the risk
-Avoiding the risk
-Retaining the risk
-Eliminating the risk - answer Retaining the risk
A property and casualty agent must complete how many
hours of CE?
-12 hours each year
-12 hours every 2 years by their due date
-complete the approved courses as specified by the law
every year
-Complete the requirements for CLU or CPCU - answer -
12 hours every 2 years by their due date
Actual Cash Value is defined as:
-Original cost of the property
PROPERTY
,-Market values of the property, less depreciation
-Replacement cost of the property-less depreciation,
obsolescence and deterioration
-Original cost of the property less depreciation - answer -
Replacement cost of the property-less depreciation,
obsolescence and deterioration
The replacement cost value is:
-The actual cost value to repair or replace at today's labor
and material costs without allowances for deterioration,
obsolescence and depreciation.
-Equal to market value
-The cost to repair or replace with like kind and quality,
less depreciation and deterioration
-Actual cash value plus depreciation - answer The actual
cost value to repair or replace at today's labor and
material costs without allowances for deterioration,
obsolescence and depreciation
Rates charged for insurance coverage sold in this state
must be:
-Excessive
-adequate
-Unfairly discriminatory
-Set by the commissioner - answer Adequate
PROPERTY
,To meet the requirements for a license in Kansas you
must comply with all the following EXCEPT:
-Have a high school diploma or equivalency
-Be of legal age
-Pay a non-refundable fee
-Be of good business reputation - answer Have a high
school diploma or equivalency.
To restore a person back to their original economic
position before a loss, without provision for material gain
is the principal of:
-Indemnity
-Insurable interest
-Consideration
-Adhesion - answer -Indemnity
Which of the following could void a valid contract?
-The medical examiner fails to detect an adverse health
condition
-The applicant knows of an adverse health condition and
fails to report it
-The agent knows of an adverse health condition and fails
to report it
PROPERTY
, -The office manager makes a change on the application -
answer -The applicant knows of an adverse health
condition and fails to report it
If the commissioner has reason to believe an agent is
engaged in unfair or deceptive practices, their first action
would be to:
-Issue a desist order
-Levy a fine or penalty
-Serve the offender with a statement of charges and
notice of hearing
-Revoke the offender's license - answer Serve the
offender with a statement of charges and notice of
hearing
If a complaint is filed against an agent in this state, The
expense for the examination of the agent's business by
the insurance company:
PROPERTY
INSURANCE PRACTICE
TEST
QUESTIONS AND ANSWERS
A self-insurer deals with risk by:
-Transferring the risk
-Avoiding the risk
-Retaining the risk
-Eliminating the risk - answer Retaining the risk
A property and casualty agent must complete how many
hours of CE?
-12 hours each year
-12 hours every 2 years by their due date
-complete the approved courses as specified by the law
every year
-Complete the requirements for CLU or CPCU - answer -
12 hours every 2 years by their due date
Actual Cash Value is defined as:
-Original cost of the property
PROPERTY
,-Market values of the property, less depreciation
-Replacement cost of the property-less depreciation,
obsolescence and deterioration
-Original cost of the property less depreciation - answer -
Replacement cost of the property-less depreciation,
obsolescence and deterioration
The replacement cost value is:
-The actual cost value to repair or replace at today's labor
and material costs without allowances for deterioration,
obsolescence and depreciation.
-Equal to market value
-The cost to repair or replace with like kind and quality,
less depreciation and deterioration
-Actual cash value plus depreciation - answer The actual
cost value to repair or replace at today's labor and
material costs without allowances for deterioration,
obsolescence and depreciation
Rates charged for insurance coverage sold in this state
must be:
-Excessive
-adequate
-Unfairly discriminatory
-Set by the commissioner - answer Adequate
PROPERTY
,To meet the requirements for a license in Kansas you
must comply with all the following EXCEPT:
-Have a high school diploma or equivalency
-Be of legal age
-Pay a non-refundable fee
-Be of good business reputation - answer Have a high
school diploma or equivalency.
To restore a person back to their original economic
position before a loss, without provision for material gain
is the principal of:
-Indemnity
-Insurable interest
-Consideration
-Adhesion - answer -Indemnity
Which of the following could void a valid contract?
-The medical examiner fails to detect an adverse health
condition
-The applicant knows of an adverse health condition and
fails to report it
-The agent knows of an adverse health condition and fails
to report it
PROPERTY
, -The office manager makes a change on the application -
answer -The applicant knows of an adverse health
condition and fails to report it
If the commissioner has reason to believe an agent is
engaged in unfair or deceptive practices, their first action
would be to:
-Issue a desist order
-Levy a fine or penalty
-Serve the offender with a statement of charges and
notice of hearing
-Revoke the offender's license - answer Serve the
offender with a statement of charges and notice of
hearing
If a complaint is filed against an agent in this state, The
expense for the examination of the agent's business by
the insurance company:
PROPERTY
