ARKANSAS PROPERTY AND CASUALTY INSURANCE EXAM 2024 ACTUAL
EXAM COMPLETE 250 QUESTIONS WITH DETAILED VERIFIED ANSWERS
(100% CORRECT ANSWERS) ALREADY GRADED A+
A hazard is best defined as: - ....ANSWER
>>>>Something that increases the chance of
loss
What is the term for a cause of loss, such as
theft of a car? - ....ANSWER >>>>A Peril
A state requiring that the commissioner agree
that a company's rates are appropriate
before they are made effective used which
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type of rating approval? - ....ANSWER
>>>>Prior approval
The following are all true regarding risk
management , except: - ....ANSWER
>>>>Insurance is designed to cover both
intentional & unintentional losses
Which type of risk involves the possibility of
loss or gain? - ....ANSWER >>>>Speculative
A fire sprinkler system installed in a factory is
considered which of the following methods of
managing risk? - ....ANSWER >>>>Reduction
Which of the following statements is not
correct regarding rates and premiums? -
....ANSWER >>>>Rates may only be excessive
if the inside is making up for lossy reserves
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An agent for ABC Insurance company is
representing an insured in an insurance
transaction. The principal in the agency
relationship is: - ....ANSWER >>>>ABC
Insurance Company
The Terrorism Insurance Program created by
the TRIA is administered by which of the
following federal entities? - ....ANSWER
>>>>Department of the Treasury
Dividends issued by Stock insurers are paid
to: - ....ANSWER >>>>stockholders
Which of the following is not an element of
an insurable risk? - ....ANSWER >>>>The loss
must be catastrophic
Which of the following has the primary
responsibility of determining acceptable
risks? - ....ANSWER >>>>Underwriter
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Which of the following places insurance with
a non-admitted insurer when insurance
cannot be placed with an admitted insurer? -
....ANSWER >>>>Surplus lines producer
Because only the insurance company makes a
promise to pay a future claim, the insurance
contract is: - ....ANSWER >>>>Unilateral
In property insurance, which clause prevents
the insured from relinquishing ownership and
leaving damaged property to the insurer and
claiming a total loss? - ....ANSWER
>>>>Abandonment
The loss of property when the cause of loss is
not known is considered: - ....ANSWER
>>>>Mysterious disappearance
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