TEXAS PROPERTY & CASUALTY
INSURANCE
1. Which hazard can be described as a careless attitude or general indifference
on the part of the insured toward the occurrence of loss?:
Morale
2. Which risk is insurable?:
Pure
3. A condition or situation that presents a possibility of loss is a (an)::
Exposure
4. The purpose of insurance is to::
transfer risk
5. With regard to insurance, risk can be defined as::
uncertainty regarding loss
6. Treating risk by purchasing insurance is an example of what type of risk
,management?:
Transfer
7. Robert and Carolyn live in a busy city and decide that not owning a car is
the solution to not experience having a car stolen. What method describes this
philosophy?:
Avoidance
8. Dishonesty on the part of an insured is an example of what?:
a moral hazard
9. What is an example of reduction as a method of handling risk?:
Installing a burglar alarm
10. Driving too fast and not wearing a seat belt are examples of?:
morale hazard
11. The risk that involves the chance of both loss and gain is?:
speculative risk
12. Self-insurance is an example of what kind of risk treatment?:
, Retention
13. If John's father transfers ownership of a house to John, can John buy
insurance?:
Yes because he has an insurable interest.
14. Fire would be an example of a what?:
Peril
15. What is the actual cause of a loss?:
Peril
16. What kind of risk is the stock market?:
speculative risk
17. A is a condition that increases the chance of loss.:
Hazard
18. Faulty wiring causes a fire that destroys a building. The faulty wiring is
considered to be a(n)::
, Hazard
19. A chance, possibility, or uncertainty of loss is known as?: risk
20. Examples of perils are ?:
fire, wind and lightning
21. Indemnity insurance will ?:
restores insured to pre-loss condition
22. The types of hazards are ?:
moral, morale, and physical
23. is when people with a greater than average exposure to loss to
purchase insurance.:
Adverse selection
24. Methods of handling risk are avoidance, reduction, retention, transfer and
.:
Sharing (ARRTS)
25. Elements of insurable risk are calculable, affordable, non-catastrophic,
homogenous, accidental and .:
INSURANCE
1. Which hazard can be described as a careless attitude or general indifference
on the part of the insured toward the occurrence of loss?:
Morale
2. Which risk is insurable?:
Pure
3. A condition or situation that presents a possibility of loss is a (an)::
Exposure
4. The purpose of insurance is to::
transfer risk
5. With regard to insurance, risk can be defined as::
uncertainty regarding loss
6. Treating risk by purchasing insurance is an example of what type of risk
,management?:
Transfer
7. Robert and Carolyn live in a busy city and decide that not owning a car is
the solution to not experience having a car stolen. What method describes this
philosophy?:
Avoidance
8. Dishonesty on the part of an insured is an example of what?:
a moral hazard
9. What is an example of reduction as a method of handling risk?:
Installing a burglar alarm
10. Driving too fast and not wearing a seat belt are examples of?:
morale hazard
11. The risk that involves the chance of both loss and gain is?:
speculative risk
12. Self-insurance is an example of what kind of risk treatment?:
, Retention
13. If John's father transfers ownership of a house to John, can John buy
insurance?:
Yes because he has an insurable interest.
14. Fire would be an example of a what?:
Peril
15. What is the actual cause of a loss?:
Peril
16. What kind of risk is the stock market?:
speculative risk
17. A is a condition that increases the chance of loss.:
Hazard
18. Faulty wiring causes a fire that destroys a building. The faulty wiring is
considered to be a(n)::
, Hazard
19. A chance, possibility, or uncertainty of loss is known as?: risk
20. Examples of perils are ?:
fire, wind and lightning
21. Indemnity insurance will ?:
restores insured to pre-loss condition
22. The types of hazards are ?:
moral, morale, and physical
23. is when people with a greater than average exposure to loss to
purchase insurance.:
Adverse selection
24. Methods of handling risk are avoidance, reduction, retention, transfer and
.:
Sharing (ARRTS)
25. Elements of insurable risk are calculable, affordable, non-catastrophic,
homogenous, accidental and .:
