Louisiana Property and Casualty Insurance Exam/ 2025-2026
Verified Questions With Answers.
Terms in this set (200)
A situation in which a Pure Risk
person can experience
only a loss and no gain
presents what type of
risk?
What is consideration in an Consideration is something of value that each party
insurance contract? gives to the other. Consideration on the part of the
insurer is binding.
A tornado that destroys a Peril
property would be an
example of what?
What type of insurer is Foreign
formed under the laws of
another state?
1. due to chance
2. definite and measurable
What are the 5
3. statistically predictable
characteristics of an ideally 4. not catastrophic
insurable risk? 5. randomly selected
Wagering on a sporting Speculative
event is known as what
type of risk?
Insurance contracts are Unequal values are exchanged between the parties to a
aleatory in nature. What contract.
does that mean?
What does the term A unilateral contract is a one-sided contract. This
unilateral contract mean? means only one party makes an enforceable
promise.
Insurers are classified Domestic, Foreign, and Alien
according to their
domicile. What are the 3
types of insurers?
, What do individuals use to Insurance
transfer their risk of loss to
a larger group?
Agreement (Offer and
What are the 4 elements of Acceptance)
an insurance contract? Consideration
Competent
Parties
Legal
Purpose
If an insurer holds a Authorized or Admitted
certificate of authority, it is
known as what type of
insurer?
Conditions that increase Hazards
the chance of a loss are
known as what?
What are the 3 types of Physical, Moral, and Morale
hazards?
What does the term Certain expectations for coverage that a reasonable
reasonable expectations person would have based on sources other than just
mean in insurance? the policy language.
When would a When it is intentional and material.
misrepresentation on an
insurance application be
considered fraud?
What is a risk? Uncertainty of Loss
What is a warranty in an An absolutely true statement upon which the validity of the
insurance contract? policy depends.
What are the 3 types of agent Express, Implied, and Apparent
authority?
In insurance contracts, When the insurance application is submitted.
when is the offer usually
made?
What does indemnify mean in To restore an insured to the same financial status as before a
insurance? loss.
What is the term for the Peril
causes of loss insured
against in an insurance
policy?
Verified Questions With Answers.
Terms in this set (200)
A situation in which a Pure Risk
person can experience
only a loss and no gain
presents what type of
risk?
What is consideration in an Consideration is something of value that each party
insurance contract? gives to the other. Consideration on the part of the
insurer is binding.
A tornado that destroys a Peril
property would be an
example of what?
What type of insurer is Foreign
formed under the laws of
another state?
1. due to chance
2. definite and measurable
What are the 5
3. statistically predictable
characteristics of an ideally 4. not catastrophic
insurable risk? 5. randomly selected
Wagering on a sporting Speculative
event is known as what
type of risk?
Insurance contracts are Unequal values are exchanged between the parties to a
aleatory in nature. What contract.
does that mean?
What does the term A unilateral contract is a one-sided contract. This
unilateral contract mean? means only one party makes an enforceable
promise.
Insurers are classified Domestic, Foreign, and Alien
according to their
domicile. What are the 3
types of insurers?
, What do individuals use to Insurance
transfer their risk of loss to
a larger group?
Agreement (Offer and
What are the 4 elements of Acceptance)
an insurance contract? Consideration
Competent
Parties
Legal
Purpose
If an insurer holds a Authorized or Admitted
certificate of authority, it is
known as what type of
insurer?
Conditions that increase Hazards
the chance of a loss are
known as what?
What are the 3 types of Physical, Moral, and Morale
hazards?
What does the term Certain expectations for coverage that a reasonable
reasonable expectations person would have based on sources other than just
mean in insurance? the policy language.
When would a When it is intentional and material.
misrepresentation on an
insurance application be
considered fraud?
What is a risk? Uncertainty of Loss
What is a warranty in an An absolutely true statement upon which the validity of the
insurance contract? policy depends.
What are the 3 types of agent Express, Implied, and Apparent
authority?
In insurance contracts, When the insurance application is submitted.
when is the offer usually
made?
What does indemnify mean in To restore an insured to the same financial status as before a
insurance? loss.
What is the term for the Peril
causes of loss insured
against in an insurance
policy?
