Tennessee Property and Casualty EXAM, QUESTIONS WITH
ACCURATE ANSWERS | MULTIPLE CHOICES |2025!!
Terms in this set (116)
An individual applied for auto The insured (customer)
insurance and obtained
coverage from ABC
Insurance Company. Who is the
first party in the contract?
A. The insured
B. The insurer
C. The agent
D. The insured and agent
If a fire causes damge to a A peril
building the fire is
A. a hazard
B. a peril
C. a risk
D. an
exposure
Wearing a seatbelt in a car is an Reduce
example if which method of
managing risk?
A. Retain
B. Avoid
C. Reduce
D. Transfer
,Tiff leaves her car unlocked when Morale
she goes shopping. She figures
her car and its
contents are insured, so there is
no reason to worry. Which
type of hazard is this an
example of?
A. Physical
B. Morale
C. Carless
D. Moral
A flood is an example of Peril
A. a peril
B. a moral hazard
C. a speculative risk
D. a physical hazard
An insurance company Foreign
incorporated in Wisconsin
and conducting business in
Wisconsin is known as a
domestic
company. What kind of company
are they considered if they do
business in
Minnesota
A. Alien
B. Domestic
C. Foreign
D. Nonadmitted
All of the following statements stock company is a participating company
about a stock company are
true except:
A. stock company pays
dividends to stockholders
B. stock company is a
,participating company
C. stock company is a
nonparticipating company
D. stock company has shareholders
What do insurance companies The law of large numbers
use to help predict how many
losses will occur in a
group or class of individuals?
A. The law of large numbers
B. Standard and Poor's
Insurance Rating Service
C. Risk retention group
D. Adverse selection
, State requires companies to have a certificate of authority
a license to sell insurance in the
state. The license is called:
A. a certificate of authority
B. a reinsurance license
C. a producer's license
D. an admittance license
All of the following are the risk must be catastrophic for the insurance company
requirements of an insurable
pure risk EXCEPT:
A. premium must be calculable
B. premium must be affordable
C. teh risk must be
catastrophic for the
insurance company
D. the loss must have been
accidental
Insurers may be classified number of clients
according to
their financial strength. This
includes all of the following
factors except:
A. number of clients
B. loss experience
C. investment performance
D. operating expenses
Agency is a relationship in which the principal (insurance company)
one
person is authorized to
represent and act for another
person or a corporation. In
insurance, the insurance agent
acts on behalf of:
A. the principal
B. the insured
C. the claimant
ACCURATE ANSWERS | MULTIPLE CHOICES |2025!!
Terms in this set (116)
An individual applied for auto The insured (customer)
insurance and obtained
coverage from ABC
Insurance Company. Who is the
first party in the contract?
A. The insured
B. The insurer
C. The agent
D. The insured and agent
If a fire causes damge to a A peril
building the fire is
A. a hazard
B. a peril
C. a risk
D. an
exposure
Wearing a seatbelt in a car is an Reduce
example if which method of
managing risk?
A. Retain
B. Avoid
C. Reduce
D. Transfer
,Tiff leaves her car unlocked when Morale
she goes shopping. She figures
her car and its
contents are insured, so there is
no reason to worry. Which
type of hazard is this an
example of?
A. Physical
B. Morale
C. Carless
D. Moral
A flood is an example of Peril
A. a peril
B. a moral hazard
C. a speculative risk
D. a physical hazard
An insurance company Foreign
incorporated in Wisconsin
and conducting business in
Wisconsin is known as a
domestic
company. What kind of company
are they considered if they do
business in
Minnesota
A. Alien
B. Domestic
C. Foreign
D. Nonadmitted
All of the following statements stock company is a participating company
about a stock company are
true except:
A. stock company pays
dividends to stockholders
B. stock company is a
,participating company
C. stock company is a
nonparticipating company
D. stock company has shareholders
What do insurance companies The law of large numbers
use to help predict how many
losses will occur in a
group or class of individuals?
A. The law of large numbers
B. Standard and Poor's
Insurance Rating Service
C. Risk retention group
D. Adverse selection
, State requires companies to have a certificate of authority
a license to sell insurance in the
state. The license is called:
A. a certificate of authority
B. a reinsurance license
C. a producer's license
D. an admittance license
All of the following are the risk must be catastrophic for the insurance company
requirements of an insurable
pure risk EXCEPT:
A. premium must be calculable
B. premium must be affordable
C. teh risk must be
catastrophic for the
insurance company
D. the loss must have been
accidental
Insurers may be classified number of clients
according to
their financial strength. This
includes all of the following
factors except:
A. number of clients
B. loss experience
C. investment performance
D. operating expenses
Agency is a relationship in which the principal (insurance company)
one
person is authorized to
represent and act for another
person or a corporation. In
insurance, the insurance agent
acts on behalf of:
A. the principal
B. the insured
C. the claimant
