KY Property & Casualty Insurance Exam (2025) comprehensive
KY Property & Casualty Insurance Exam
questions and verified detailed solutions (MULTIPLE CHOICES)
Study online at https://quizlet.com/_53ezgb
|complete solutions |A+ GRADED |100% CORRECT!!
1. Faulty wiring in a home is an example of a: Hazard
a) loss
b) peril
c) risk
d) hazard
2. When a person buys insurance what method of han- Transfer
dling risk has been undertaken?
a) transfer
b) reduction
c) avoidance
d) retention
3. In property and casualty insurance, insurable interest At the time of loss
must exist:
a) at the time a change is made to a policy
b) at the time of policy application
c) at the time of loss
d) at the time of policy solicitation
4. All of the following actions by a person could be de- Investing in the stock mar-
scribed as a risk avoidance EXCEPT: ket
a) investing in the stock market
b) refusing to scuba dive
c) never flying in an airplane
d) taking a flu shot each year
5. Which of the following insurance options would be Reciprocal
considered a risk-sharing arrangement ?
a) stock
b) mutual
, KY Property & Casualty Insurance Exam
Study online at https://quizlet.com/_53ezgb
c) surplus lines
d) reciprocal
6. Illegal use of narcotics would be an example of: Moral hazard
a) pure hazard
b) morale hazard
c) moral hazard
d) physical hazard
7. What do individuals use to transfer their risk of loss to Insurance
a larger group?
a) insurable interest
b) exposure
c) indemnity
d) insurance
8. For the reported losses of an insured group to become Larger
more likely to equal the statistical probability of loss for
that particular class, the insured group must become:
a) more active
b) larger
c) smaller
d) older
9. What type of insurance policy insures against all risks Open peril policy
of loss that are not specifically excluded by the policy?
a) binder policy
b) named peril policy
c) open peril policy
d) specified peril policy
10. Insurance is the transfer of: Risk
a) peril
KY Property & Casualty Insurance Exam
questions and verified detailed solutions (MULTIPLE CHOICES)
Study online at https://quizlet.com/_53ezgb
|complete solutions |A+ GRADED |100% CORRECT!!
1. Faulty wiring in a home is an example of a: Hazard
a) loss
b) peril
c) risk
d) hazard
2. When a person buys insurance what method of han- Transfer
dling risk has been undertaken?
a) transfer
b) reduction
c) avoidance
d) retention
3. In property and casualty insurance, insurable interest At the time of loss
must exist:
a) at the time a change is made to a policy
b) at the time of policy application
c) at the time of loss
d) at the time of policy solicitation
4. All of the following actions by a person could be de- Investing in the stock mar-
scribed as a risk avoidance EXCEPT: ket
a) investing in the stock market
b) refusing to scuba dive
c) never flying in an airplane
d) taking a flu shot each year
5. Which of the following insurance options would be Reciprocal
considered a risk-sharing arrangement ?
a) stock
b) mutual
, KY Property & Casualty Insurance Exam
Study online at https://quizlet.com/_53ezgb
c) surplus lines
d) reciprocal
6. Illegal use of narcotics would be an example of: Moral hazard
a) pure hazard
b) morale hazard
c) moral hazard
d) physical hazard
7. What do individuals use to transfer their risk of loss to Insurance
a larger group?
a) insurable interest
b) exposure
c) indemnity
d) insurance
8. For the reported losses of an insured group to become Larger
more likely to equal the statistical probability of loss for
that particular class, the insured group must become:
a) more active
b) larger
c) smaller
d) older
9. What type of insurance policy insures against all risks Open peril policy
of loss that are not specifically excluded by the policy?
a) binder policy
b) named peril policy
c) open peril policy
d) specified peril policy
10. Insurance is the transfer of: Risk
a) peril
