KY Property Casualty Insurance Exam

KY Property & Casualty Insurance Exam 2024 with 100% correct answers

Faulty wiring in a home is an example of a:

• loss
• peril
• risk
• hazard - correct answer Hazard

When a person buys insurance what method of handling risk has been undertaken?

• transfer
• reduction
• avoidance
• retention - correct answer Transfer

In property and casualty insurance, insurable interest must exist:

• at the time a change is made to a policy
• at the time of policy application
• at the time of loss
• at the time of policy solicitation - correct answer At the time of loss

All of the following actions by a person could be described as a risk avoidance EXCEPT:

• investing in the stock market
• refusing to scuba dive
• never flying in an airplane
• taking a flu shot each year - correct answer Investing in the stock market 1 / 2

Which of the following insurance options would be considered a risk-sharing arrangement ?

• stock
• mutual
• surplus lines
• reciprocal - correct answer Reciprocal

Illegal use of narcotics would be an example of:

• pure hazard
• morale hazard
• moral hazard
• physical hazard - correct answer Moral hazard

What do individuals use to transfer their risk of loss to a larger group?

• insurable interest
• exposure
• indemnity
• insurance - correct answer Insurance

For the reported losses of an insured group to become more likely to equal the statistical probability of

loss for that particular class, the insured group must become:

• more active
• larger
• smaller
• older - correct answer Larger

What type of insurance policy insures against all risks of loss that are not specifically excluded by the policy?

• binder policy
• named peril policy
• / 2