Texas Property & Casualty Insurance Exam |
Questions with 100% Correct Answers | Verified |
Latest Update 2026
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Terms in this set (422)
A condition or situation that presents exposure
a possibility of loss is a (an):
The purpose of insurance is to: transfer risk
Which hazard can be described as a morale
careless attitude or general
indifference on the part of the
insured toward the occurrence of
loss?
Which risk is insurable? pure
With regard to insurance, risk can be uncertainty regarding loss
defined as:
Treating risk by purchasing insurance transfer
is an example of what type of risk
management?
,Robert and Carolyn live in a busy city avoidance
and decide that not owning a car is
the solution to not experience
having a car stolen. What method
describes this philosophy?
Dishonesty on the part of an insured a moral hazard
is an example of what?
What is an example of reduction as a Installing a burglar alarm
method of handling risk?
Driving too fast and not wearing a morale hazard
seat belt are examples of?
The risk that involves the chance of speculative risk
both loss and gain is?
Self-insurance is an example of what Retention
kind of risk treatment?
If John's father transfers ownership of Yes because he has an insurable interest.
a house to John, can John buy
insurance?
Fire would be an example of a what? peril
What is the actual cause of a loss? peril
What kind of risk is the stock market? speculative risk
A ____ is a condition that increases the hazard
chance of loss.
, Faulty wiring causes a fire that hazard
destroys a building. The faulty wiring
is considered to be a(n):
A chance, possibility, or uncertainty risk
of loss is known as?
Examples of perils are_____? fire, wind and lightning
Indemnity insurance will _____? restores insured to pre-loss condition
The types of hazards are_____? moral, morale, and physical
________ is when people with a greater Adverse selection
than average exposure to loss to
purchase insurance.
Methods of handling risk are Sharing (ARRTS)
avoidance, reduction, retention,
transfer and _____.
Elements of insurable risk are Measurable (CANHAM)
calculable, affordable, non-
catastrophic, homogenous,
accidental and _____.
Myron, who is 16, signs a contract to He is not competent at 16.
lease a car. This would probably not
be considered a valid contract under
the law because _____.
Questions with 100% Correct Answers | Verified |
Latest Update 2026
Save
Terms in this set (422)
A condition or situation that presents exposure
a possibility of loss is a (an):
The purpose of insurance is to: transfer risk
Which hazard can be described as a morale
careless attitude or general
indifference on the part of the
insured toward the occurrence of
loss?
Which risk is insurable? pure
With regard to insurance, risk can be uncertainty regarding loss
defined as:
Treating risk by purchasing insurance transfer
is an example of what type of risk
management?
,Robert and Carolyn live in a busy city avoidance
and decide that not owning a car is
the solution to not experience
having a car stolen. What method
describes this philosophy?
Dishonesty on the part of an insured a moral hazard
is an example of what?
What is an example of reduction as a Installing a burglar alarm
method of handling risk?
Driving too fast and not wearing a morale hazard
seat belt are examples of?
The risk that involves the chance of speculative risk
both loss and gain is?
Self-insurance is an example of what Retention
kind of risk treatment?
If John's father transfers ownership of Yes because he has an insurable interest.
a house to John, can John buy
insurance?
Fire would be an example of a what? peril
What is the actual cause of a loss? peril
What kind of risk is the stock market? speculative risk
A ____ is a condition that increases the hazard
chance of loss.
, Faulty wiring causes a fire that hazard
destroys a building. The faulty wiring
is considered to be a(n):
A chance, possibility, or uncertainty risk
of loss is known as?
Examples of perils are_____? fire, wind and lightning
Indemnity insurance will _____? restores insured to pre-loss condition
The types of hazards are_____? moral, morale, and physical
________ is when people with a greater Adverse selection
than average exposure to loss to
purchase insurance.
Methods of handling risk are Sharing (ARRTS)
avoidance, reduction, retention,
transfer and _____.
Elements of insurable risk are Measurable (CANHAM)
calculable, affordable, non-
catastrophic, homogenous,
accidental and _____.
Myron, who is 16, signs a contract to He is not competent at 16.
lease a car. This would probably not
be considered a valid contract under
the law because _____.
