PFP 105 EXAM 3 QUESTIONS WITH 100%
CORRECT ANSWERS LATEST VERSION
2025/2026.
Property Insurance - ANS Ensures that damages to your auto and home are covered.
Liability - ANS The amount that you may be required to pay someone for damages that you
caused.
Risk - ANS Exposure to events or perils that can cause financial loss
Risk Management - ANS Decisions about whether and how to protect against risk.
- Risk management decision affected by degree of risk tolerance
- Avoid, reduce, retain, transfer
Premium - ANS The cost of obtaining insurance
Insurance Agent - ANS Recommends insurance policies for customers
Captive (or exclusive) Insurance Agent - ANS Works for one particular insurance company
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, Independent Insurance Agent - ANS Represent may different insurance companies
Auto Insurance - ANS Protects you from financial loss from damage or liability resulting from
automobile accidents
No fault Insurance Programs - ANS Do not hold a specific driver liable for causing the accident
Coverage A: Liability Coverage - ANS Bodily Injury Liability Coverage
Property Damage Liability Coverage
Bodily Injury Liability Coverage - ANS Protects against liability associated with injuries caused
by the policyholder
Property Damage Liability Coverage - ANS Protects against losses that result when the
policyholder damages another person's property with his car
Financial Responsibility Laws - ANS Laws that require individuals who drive cars to purchase a
minimum amount of liability insurance
Coverage B: Medical Payments Coverage - ANS - Insures against the cost of medical care for
you and other passengers in your car
- Applies only to insured car
Coverage C: Uninsured or Underinsured Motorist Coverage - ANS - Uninsured Motorist
Coverage
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
CORRECT ANSWERS LATEST VERSION
2025/2026.
Property Insurance - ANS Ensures that damages to your auto and home are covered.
Liability - ANS The amount that you may be required to pay someone for damages that you
caused.
Risk - ANS Exposure to events or perils that can cause financial loss
Risk Management - ANS Decisions about whether and how to protect against risk.
- Risk management decision affected by degree of risk tolerance
- Avoid, reduce, retain, transfer
Premium - ANS The cost of obtaining insurance
Insurance Agent - ANS Recommends insurance policies for customers
Captive (or exclusive) Insurance Agent - ANS Works for one particular insurance company
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, Independent Insurance Agent - ANS Represent may different insurance companies
Auto Insurance - ANS Protects you from financial loss from damage or liability resulting from
automobile accidents
No fault Insurance Programs - ANS Do not hold a specific driver liable for causing the accident
Coverage A: Liability Coverage - ANS Bodily Injury Liability Coverage
Property Damage Liability Coverage
Bodily Injury Liability Coverage - ANS Protects against liability associated with injuries caused
by the policyholder
Property Damage Liability Coverage - ANS Protects against losses that result when the
policyholder damages another person's property with his car
Financial Responsibility Laws - ANS Laws that require individuals who drive cars to purchase a
minimum amount of liability insurance
Coverage B: Medical Payments Coverage - ANS - Insures against the cost of medical care for
you and other passengers in your car
- Applies only to insured car
Coverage C: Uninsured or Underinsured Motorist Coverage - ANS - Uninsured Motorist
Coverage
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
