Virginia Property and Casualty Insurance Exam |
Questions with 100% Correct Answers | Verified |
Latest Update 2026
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Terms in this set (100)
What is based on the principle of Spreading the results of a financial loss among
Risk Transfer many persons, so the cost to any one person is
small
What kind of risk has an outcome Speculative Risk
that is uncertain?
What is the reason for a claim? A loss is the reason a claim against an insurance
company.
What is the measure of a loss? Exposure Units
Name three types of hazards. 1. Physical Hazard
2. Moral Hazard
3. Morale Hazard
What is a cause of a loss? Perils are the causes of possible loss
What is the common way to transfer The most common method of risk transfer is when
risk? a homeowner purchases insurance on their home..
, Define adverse selection. Insuring risks more prone to losses than an average
risk.
What is the theory of probability that The Law of Large Numbers
is the basis for insurance?
Who manages a Mutual Company A Boar of Trustees
What is high risk coverage Surplus Lines Insurers
purchased from an unauthorized
company?
How are insurance companies Where they are located, chartered, or
defined? incorporated.
What protects policy holders from Property and Casualty Insurance Guaranty
an insurer's insolvency? Association
What must all insurers obtain to Certificate of Authority
conduct insurance business?
Who does an agent represent? Always deemed to represent an insurer (company)
What is the authority that is written in Express Authority
a contract?
What are the four elements of a 1. Offer and Acceptance
contract? 2. Consideration
3. Competent Parties
4. Legal Purpose
Define a fiduciary. An agent/broker who handles insurer's funds in a
trust capacity
Questions with 100% Correct Answers | Verified |
Latest Update 2026
Save
Terms in this set (100)
What is based on the principle of Spreading the results of a financial loss among
Risk Transfer many persons, so the cost to any one person is
small
What kind of risk has an outcome Speculative Risk
that is uncertain?
What is the reason for a claim? A loss is the reason a claim against an insurance
company.
What is the measure of a loss? Exposure Units
Name three types of hazards. 1. Physical Hazard
2. Moral Hazard
3. Morale Hazard
What is a cause of a loss? Perils are the causes of possible loss
What is the common way to transfer The most common method of risk transfer is when
risk? a homeowner purchases insurance on their home..
, Define adverse selection. Insuring risks more prone to losses than an average
risk.
What is the theory of probability that The Law of Large Numbers
is the basis for insurance?
Who manages a Mutual Company A Boar of Trustees
What is high risk coverage Surplus Lines Insurers
purchased from an unauthorized
company?
How are insurance companies Where they are located, chartered, or
defined? incorporated.
What protects policy holders from Property and Casualty Insurance Guaranty
an insurer's insolvency? Association
What must all insurers obtain to Certificate of Authority
conduct insurance business?
Who does an agent represent? Always deemed to represent an insurer (company)
What is the authority that is written in Express Authority
a contract?
What are the four elements of a 1. Offer and Acceptance
contract? 2. Consideration
3. Competent Parties
4. Legal Purpose
Define a fiduciary. An agent/broker who handles insurer's funds in a
trust capacity
