PFP 105 Exam 3 Questions Well Answered Latest Update 2025-2026
Property Insurance - Answers Ensures that damages to your auto and home are covered.
Liability - Answers The amount that you may be required to pay someone for damages that you
caused.
Risk - Answers Exposure to events or perils that can cause financial loss
Risk Management - Answers Decisions about whether and how to protect against risk.
- Risk management decision affected by degree of risk tolerance
- Avoid, reduce, retain, transfer
Premium - Answers The cost of obtaining insurance
Insurance Agent - Answers Recommends insurance policies for customers
Captive (or exclusive) Insurance Agent - Answers Works for one particular insurance company
Independent Insurance Agent - Answers Represent may different insurance companies
Auto Insurance - Answers Protects you from financial loss from damage or liability resulting
from automobile accidents
No fault Insurance Programs - Answers Do not hold a specific driver liable for causing the
accident
Coverage A: Liability Coverage - Answers Bodily Injury Liability Coverage
Property Damage Liability Coverage
Bodily Injury Liability Coverage - Answers Protects against liability associated with injuries
caused by the policyholder
Property Damage Liability Coverage - Answers Protects against losses that result when the
policyholder damages another person's property with his car
Financial Responsibility Laws - Answers Laws that require individuals who drive cars to
purchase a minimum amount of liability insurance
Coverage B: Medical Payments Coverage - Answers - Insures against the cost of medical care
for you and other passengers in your car
- Applies only to insured car
Property Insurance - Answers Ensures that damages to your auto and home are covered.
Liability - Answers The amount that you may be required to pay someone for damages that you
caused.
Risk - Answers Exposure to events or perils that can cause financial loss
Risk Management - Answers Decisions about whether and how to protect against risk.
- Risk management decision affected by degree of risk tolerance
- Avoid, reduce, retain, transfer
Premium - Answers The cost of obtaining insurance
Insurance Agent - Answers Recommends insurance policies for customers
Captive (or exclusive) Insurance Agent - Answers Works for one particular insurance company
Independent Insurance Agent - Answers Represent may different insurance companies
Auto Insurance - Answers Protects you from financial loss from damage or liability resulting
from automobile accidents
No fault Insurance Programs - Answers Do not hold a specific driver liable for causing the
accident
Coverage A: Liability Coverage - Answers Bodily Injury Liability Coverage
Property Damage Liability Coverage
Bodily Injury Liability Coverage - Answers Protects against liability associated with injuries
caused by the policyholder
Property Damage Liability Coverage - Answers Protects against losses that result when the
policyholder damages another person's property with his car
Financial Responsibility Laws - Answers Laws that require individuals who drive cars to
purchase a minimum amount of liability insurance
Coverage B: Medical Payments Coverage - Answers - Insures against the cost of medical care
for you and other passengers in your car
- Applies only to insured car
