Page |1 n n
TEXAS PROPERTY & CASUALTY INSURANCE E n n n n n
XAM 2025| BRAND NEW ACTUAL EXAM WITH 10
n n n n n n n
0% VERIFIED QUESTIONS AND CORRECT SOLU
n n n n n
TIONS| GUARANTEED VALUE PACK| ACE YOUR n n n n n n
GRADES.
1. A condition or situation that presents a possibility of loss is a (an): -
n n n n n n n n n n n n n
correct answer - exposure
n n n n
2. The purpose of insurance is to: - correct answer - transfer risk
n n n n n n n n n n n
3. Which hazard can be described as a careless attitude or general indiffer
n n n n n n n n n n n
ence on the part of the insured toward the occurrence of loss? -
n n n n n n n n n n n n
correct answer - morale
n n n n
4. Which risk is insurable? - correct answer - pure
n n n n n n n n
5. With regard to insurance, risk can be defined as: - correct answer -
n n n n n n n n n n n n
uncertainty regarding loss
n n n
, Page |2 n n
6. Treating risk by purchasing insurance is an example of what type of risk m
n n n n n n n n n n n n n
anagement? - correct answer - transfer n n n n n
7. Robert and Carolyn live in a busy city and decide that not owning a car is
n n n n n n n n n n n n n n n n
the solution to not experience having a car stolen. What method describ
n n n n n n n n n n n
es this philosophy? - correct answer - avoidance
n n n n n n n
8. Dishonesty on the part of an insured is an example of what? -
n n n n n n n n n n n n
correct answer - a moral hazard
n n n n n n
9. What is an example of reduction as a method of handling risk? -
n n n n n n n n n n n n
correct answer - Installing a burglar alarm
n n n n n n n
10. Driving too fast and not wearing a seat belt are examples of? -
n n n n n n n n n n n n
n correct answer - morale hazard
n n n n
11. The risk that involves the chance of both loss and gain is? -
n n n n n n n n n n n n
n correct answer - speculative risk
n n n n
12. Self-insurance is an example of what kind of risk treatment? -
n n n n n n n n n n
n correct answer - Retention
n n n
, Page |3 n n
13. If John's father transfers ownership of a house to John, can John buy in
n n n n n n n n n n n n n
surance? - correct answer - Yes because he has an insurable interest.
n n n n n n n n n n n
14. Fire would be an example of a what? - correct answer - peril
n n n n n n n n n n n n
15. What is the actual cause of a loss? - correct answer - peril
n n n n n n n n n n n n
16. What kind of risk is the stock market? - correct answer -
n n n n n n n n n n n
n speculative risk n
17. A n is a condition that increases the chance of loss. -
n n n n n n n n n
n correct answer - hazard
n n n
18. Faulty wiring causes a fire that destroys a building. The faulty wiring i
n n n n n n n n n n n n
s considered to be a(n): - correct answer - hazard
n n n n n n n n n
19. A chance, possibility, or uncertainty of loss is known as? -
n n n n n n n n n n
n correct answer - risk
n n n
, Page |4 n n
20. Examples of perils are n n n ? - correct answer -
n n n n
n fire, wind and lightning
n n n
21. Indemnity insurance will ? - correct answer -
n n n n n n n
n restores insured to pre-loss condition
n n n n
22. The types of hazards are
n n n n ? - correct answer -
n n n n
n moral, morale, and physical
n n n
23. is when people with a greater than average exposure to l
n n n n n n n n n n
oss to purchase insurance. - correct answer - Adverse selection
n n n n n n n n n
24. Methods of handling risk are avoidance, reduction, retention, transfer
n n n n n n n n n
and . - correct answer - Sharing (ARRTS)
n n n n n n n
25. Elements of insurable risk are calculable, affordable, non-
n n n n n n n
n catastrophic, homogenous, accidental and . - correct answer -
n n n n n n n n
n Measurable (CANHAM) n
26. Myron, who is 16, signs a contract to lease a car. This would probably n
n n n n n n n n n n n n n n
ot be considered a valid contract under the law because
n n .- n n n n n n n n n
ncorrect answer - He is not competent at 16.
n n n n n n n n
TEXAS PROPERTY & CASUALTY INSURANCE E n n n n n
XAM 2025| BRAND NEW ACTUAL EXAM WITH 10
n n n n n n n
0% VERIFIED QUESTIONS AND CORRECT SOLU
n n n n n
TIONS| GUARANTEED VALUE PACK| ACE YOUR n n n n n n
GRADES.
1. A condition or situation that presents a possibility of loss is a (an): -
n n n n n n n n n n n n n
correct answer - exposure
n n n n
2. The purpose of insurance is to: - correct answer - transfer risk
n n n n n n n n n n n
3. Which hazard can be described as a careless attitude or general indiffer
n n n n n n n n n n n
ence on the part of the insured toward the occurrence of loss? -
n n n n n n n n n n n n
correct answer - morale
n n n n
4. Which risk is insurable? - correct answer - pure
n n n n n n n n
5. With regard to insurance, risk can be defined as: - correct answer -
n n n n n n n n n n n n
uncertainty regarding loss
n n n
, Page |2 n n
6. Treating risk by purchasing insurance is an example of what type of risk m
n n n n n n n n n n n n n
anagement? - correct answer - transfer n n n n n
7. Robert and Carolyn live in a busy city and decide that not owning a car is
n n n n n n n n n n n n n n n n
the solution to not experience having a car stolen. What method describ
n n n n n n n n n n n
es this philosophy? - correct answer - avoidance
n n n n n n n
8. Dishonesty on the part of an insured is an example of what? -
n n n n n n n n n n n n
correct answer - a moral hazard
n n n n n n
9. What is an example of reduction as a method of handling risk? -
n n n n n n n n n n n n
correct answer - Installing a burglar alarm
n n n n n n n
10. Driving too fast and not wearing a seat belt are examples of? -
n n n n n n n n n n n n
n correct answer - morale hazard
n n n n
11. The risk that involves the chance of both loss and gain is? -
n n n n n n n n n n n n
n correct answer - speculative risk
n n n n
12. Self-insurance is an example of what kind of risk treatment? -
n n n n n n n n n n
n correct answer - Retention
n n n
, Page |3 n n
13. If John's father transfers ownership of a house to John, can John buy in
n n n n n n n n n n n n n
surance? - correct answer - Yes because he has an insurable interest.
n n n n n n n n n n n
14. Fire would be an example of a what? - correct answer - peril
n n n n n n n n n n n n
15. What is the actual cause of a loss? - correct answer - peril
n n n n n n n n n n n n
16. What kind of risk is the stock market? - correct answer -
n n n n n n n n n n n
n speculative risk n
17. A n is a condition that increases the chance of loss. -
n n n n n n n n n
n correct answer - hazard
n n n
18. Faulty wiring causes a fire that destroys a building. The faulty wiring i
n n n n n n n n n n n n
s considered to be a(n): - correct answer - hazard
n n n n n n n n n
19. A chance, possibility, or uncertainty of loss is known as? -
n n n n n n n n n n
n correct answer - risk
n n n
, Page |4 n n
20. Examples of perils are n n n ? - correct answer -
n n n n
n fire, wind and lightning
n n n
21. Indemnity insurance will ? - correct answer -
n n n n n n n
n restores insured to pre-loss condition
n n n n
22. The types of hazards are
n n n n ? - correct answer -
n n n n
n moral, morale, and physical
n n n
23. is when people with a greater than average exposure to l
n n n n n n n n n n
oss to purchase insurance. - correct answer - Adverse selection
n n n n n n n n n
24. Methods of handling risk are avoidance, reduction, retention, transfer
n n n n n n n n n
and . - correct answer - Sharing (ARRTS)
n n n n n n n
25. Elements of insurable risk are calculable, affordable, non-
n n n n n n n
n catastrophic, homogenous, accidental and . - correct answer -
n n n n n n n n
n Measurable (CANHAM) n
26. Myron, who is 16, signs a contract to lease a car. This would probably n
n n n n n n n n n n n n n n
ot be considered a valid contract under the law because
n n .- n n n n n n n n n
ncorrect answer - He is not competent at 16.
n n n n n n n n
