Texas Adjusters License Exam (Graded A Plus) with Questions and Answers

Texas Adjusters License Exam (Graded A Plus) with Questions and Answers Horatio is a business owner who is part of a business owners group that are buying old commercial buildings in their small city and refurbishing them. Horatio has bought a beautiful historical building made mostly of wood. He installs a sprinkler system right away to prevent a fire. What risk management strategy is Horatio using? ANSWER Risk Reduction A church has had the woodwork in the building refinished and new stain and varnish has been applied. The workers placed the rags and brushes that were used to apply the varnish in a small closet and closed the door, creating the possibility of spontaneous combustion. Which of the following terms best describes this condition? ANSWER Hazard Which of the following is most likely to be uninsurable? ANSWER The purchaser of a new home wants to protect herself from a possible drop in housing prices Adverse selection occurs when: ANSWER Applicants are accepted by the insurer with little or no attention given to underwriting A risk where both profit and loss are possible is a ____________ risk. ANSWER Speculative When a person purchases several insurance policies to provide more coverage on a risk than the value of the possible loss, it is known as: ANSWER Over insurance 100-year flood is an example of which of the following types of risk? ANSWER Static Risk Which of the following phrases best describes a "hazard?" ANSWER A condition that increases the chances of a loss..