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KY PROPERTY & CASUALTY INSURANCE
EXAM 2025 | CERTIFIED QUESTIONS WITH
VERIFIED ANSWERS
Faulty wiring in a home is an example of a:
a) loss
b) peril
c) risk
d) hazard - correct-answer-Hazard
In which of the following examples would a contract between an insurer and a
prospective insured be legal?
a) The applicant is under the influence of medication at the time of application.
b) The applicant has a prior felony conviction.
c) The applicant is intoxicated at the time of application.
d) The applicant is a 12-year-old student. - correct-answer-The applicant has a
prior felony conviction
What term best describes the act of withholding material information that would
be crucial to an underwriting decision?
a) concealment
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b) withholding
c) utmost good faith
d) breach of warranty - correct-answer-concealment
What is the purpose of reporting forms?
a) to report a violation of the Insurance Code of the Executive Director
b) to report a loss to the insurer
c) to organize information required for the Executive Director's inspections
d) to determine the amount of premium to be charged - correct-answer-To
determine the amount of premium to be charged
In insurance terms, what are components?
a) the factors that determine rates
b) the amounts paid out in benefits
c) the penalties paid for unfair trade practices
d) the prices charged for policies - correct-answer-The factors that determine
rates
Using an air-cooled engine, a proposed insured has developed a new,
experimental aircraft. If the inventor applies for liability insurance, what rating
type will the insurer most likely use?
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a) judgement
b) class
c) schedule
d) merit - correct-answer-Judgement
Reporting forms help the insurer to:
a) determine workers compensation benefits
b) report complaints against it to the Executive Director
c) report their financial status to the Executive Director
d) determine premiums to be charged - correct-answer-Determine premiums to
be charged
Negligence may be defined as:
a) a situation that creates a probability of loss
b) a latent defect or fault in property
c) the inability to meet the burden of proof
d) the failure to use reasonable and prudent care - correct-answer-The failure to
use reasonable and prudent care
After a storm dumps several inches of snow, an insured spends several hours
clearing his sidewalk and driveway. Later that night it begins to sleet. Before the
KY PROPERTY & CASUALTY INSURANCE
EXAM 2025 | CERTIFIED QUESTIONS WITH
VERIFIED ANSWERS
Faulty wiring in a home is an example of a:
a) loss
b) peril
c) risk
d) hazard - correct-answer-Hazard
In which of the following examples would a contract between an insurer and a
prospective insured be legal?
a) The applicant is under the influence of medication at the time of application.
b) The applicant has a prior felony conviction.
c) The applicant is intoxicated at the time of application.
d) The applicant is a 12-year-old student. - correct-answer-The applicant has a
prior felony conviction
What term best describes the act of withholding material information that would
be crucial to an underwriting decision?
a) concealment
,2|Page
b) withholding
c) utmost good faith
d) breach of warranty - correct-answer-concealment
What is the purpose of reporting forms?
a) to report a violation of the Insurance Code of the Executive Director
b) to report a loss to the insurer
c) to organize information required for the Executive Director's inspections
d) to determine the amount of premium to be charged - correct-answer-To
determine the amount of premium to be charged
In insurance terms, what are components?
a) the factors that determine rates
b) the amounts paid out in benefits
c) the penalties paid for unfair trade practices
d) the prices charged for policies - correct-answer-The factors that determine
rates
Using an air-cooled engine, a proposed insured has developed a new,
experimental aircraft. If the inventor applies for liability insurance, what rating
type will the insurer most likely use?
, 3|Page
a) judgement
b) class
c) schedule
d) merit - correct-answer-Judgement
Reporting forms help the insurer to:
a) determine workers compensation benefits
b) report complaints against it to the Executive Director
c) report their financial status to the Executive Director
d) determine premiums to be charged - correct-answer-Determine premiums to
be charged
Negligence may be defined as:
a) a situation that creates a probability of loss
b) a latent defect or fault in property
c) the inability to meet the burden of proof
d) the failure to use reasonable and prudent care - correct-answer-The failure to
use reasonable and prudent care
After a storm dumps several inches of snow, an insured spends several hours
clearing his sidewalk and driveway. Later that night it begins to sleet. Before the
