PROPERTY AND CASUALTY ARIZONA /IDAHO PROPERTY
AND CASUALTY INSURANCE EXAM 2026
Utmost Good Faith - ANSWER ->The insurer must be able
to rely on the statements in the application, and the
insured must be able to rely on the insurer to pay valid
claims. In the forming of an insurance contract, this is
referred to as
Hazards - ANSWER ->Events or conditions that increase
the chances of an insured loss occurring are referred to
as
Adhesion - ANSWER ->Type of contract that is prepared
bu only the insurer causing the insureds only options to
accept or reject the policy
,Reinsurance - ANSWER ->What method do insurers use
to protect themselves against catastrophic losses?
Larger - ANSWER ->For the reported losses of an insured
group to become more likely to equal the statistical
probability of loss for that particular class, the insured
group must become
A statement by the applicant that upon discovery, would
affect the underwriting decision of the insurance
company - ANSWER ->What is material
misrepresentation?
Exchange of unequal values - ANSWER ->Which of the
following best describes the aleatory nature of an
insurance contract?
The loss must be catastrophic. - ANSWER ->Which of the
following is NOT a characteristic of an insurable risk?
Restores an insured person to the same financial state as
before the loss - ANSWER ->In case of a loss, the
indemnity provision in insurance policies
,The application given to a prospective insured - ANSWER
->Which of the following is NOT the consideration in a
policy?
Domestic - ANSWER ->Which of the following best
describes an insurance company that has been formed
under the laws of this state
First name insured - ANSWER ->Which of the following
would be named on the declarations of a property or
liability policy?
A statement that earthquake damage is not covered -
ANSWER ->The declarations page of the homeowners
policy provides all of the following information EXCEPT
At a time of loss - ANSWER ->INSURABLE INTEREST IN
THE PROPERTY COVERED IN A POLICY MUST BE PROVEN
WHEN?
A house - ANSWER ->Which of the following would NOT
be classified as personal property for insurance
purposes?
Renewal dates - ANSWER ->What type of information
would be found in a policys insuring agreement?
, Stated Amount - ANSWER ->When the amount of
insurance written in a property policy is not subject to
any coinsurance provision and that amount is paid in the
event of a covered loss, the coverage is said to be written
as
His policy has been in effect for at least 60 days -
ANSWER ->Otto fails to pay the premium on a personal
lines property policy. Ottos policy can be canceled if
Insurance Guaranty Association - ANSWER ->Which of
the following entities protects policyowners, insureds,
and beneficiaries under insurance contracts when
insurers fail to perform contractual obligations due to
financial impairment?
Exclusions - ANSWER ->All of the following are found in
the declarations section of a policy EXCEPT the
Cancellation - ANSWER ->The termination of an in-force
insurance policy by either the insured or the insurer prior
to the expiration date shown in the policy is known as
AND CASUALTY INSURANCE EXAM 2026
Utmost Good Faith - ANSWER ->The insurer must be able
to rely on the statements in the application, and the
insured must be able to rely on the insurer to pay valid
claims. In the forming of an insurance contract, this is
referred to as
Hazards - ANSWER ->Events or conditions that increase
the chances of an insured loss occurring are referred to
as
Adhesion - ANSWER ->Type of contract that is prepared
bu only the insurer causing the insureds only options to
accept or reject the policy
,Reinsurance - ANSWER ->What method do insurers use
to protect themselves against catastrophic losses?
Larger - ANSWER ->For the reported losses of an insured
group to become more likely to equal the statistical
probability of loss for that particular class, the insured
group must become
A statement by the applicant that upon discovery, would
affect the underwriting decision of the insurance
company - ANSWER ->What is material
misrepresentation?
Exchange of unequal values - ANSWER ->Which of the
following best describes the aleatory nature of an
insurance contract?
The loss must be catastrophic. - ANSWER ->Which of the
following is NOT a characteristic of an insurable risk?
Restores an insured person to the same financial state as
before the loss - ANSWER ->In case of a loss, the
indemnity provision in insurance policies
,The application given to a prospective insured - ANSWER
->Which of the following is NOT the consideration in a
policy?
Domestic - ANSWER ->Which of the following best
describes an insurance company that has been formed
under the laws of this state
First name insured - ANSWER ->Which of the following
would be named on the declarations of a property or
liability policy?
A statement that earthquake damage is not covered -
ANSWER ->The declarations page of the homeowners
policy provides all of the following information EXCEPT
At a time of loss - ANSWER ->INSURABLE INTEREST IN
THE PROPERTY COVERED IN A POLICY MUST BE PROVEN
WHEN?
A house - ANSWER ->Which of the following would NOT
be classified as personal property for insurance
purposes?
Renewal dates - ANSWER ->What type of information
would be found in a policys insuring agreement?
, Stated Amount - ANSWER ->When the amount of
insurance written in a property policy is not subject to
any coinsurance provision and that amount is paid in the
event of a covered loss, the coverage is said to be written
as
His policy has been in effect for at least 60 days -
ANSWER ->Otto fails to pay the premium on a personal
lines property policy. Ottos policy can be canceled if
Insurance Guaranty Association - ANSWER ->Which of
the following entities protects policyowners, insureds,
and beneficiaries under insurance contracts when
insurers fail to perform contractual obligations due to
financial impairment?
Exclusions - ANSWER ->All of the following are found in
the declarations section of a policy EXCEPT the
Cancellation - ANSWER ->The termination of an in-force
insurance policy by either the insured or the insurer prior
to the expiration date shown in the policy is known as
