GA PROPERTY & CASUALTY TEST
QUESTIONS AND ANSWERS
TYPE OF RISK WHICH INSURANCE COMPANIES WILL INSURE IS
CALLED? - Answer️️ -PURE RISK
MORAL HAZARD - Answer️️ -RANDY, THE OWNER OF A SMALL
BUSINESS APPLIED FOR FIRE INSURANCE WITH LIMITS EQUAL TO
100% of THE PROPERTY VALUE. HE HAD A HUGE...
TYPE OF RISK WHICH INSURANCE COMPANIES WILL INSURE IS
CALLED? - Answer✔️✔️-PURE RISK
MORAL HAZARD - Answer✔️✔️-RANDY, THE OWNER OF A SMALL
BUSINESS APPLIED FOR FIRE INSURANCE WITH LIMITS EQUAL TO
100% of THE PROPERTY VALUE. HE HAD A HUGE UNSOLD
INVENTORY AND A LARGE GAMBLING DEBT. THIS MIGHT
INDICATE?
THE RISK OF LOSS MAY BE CLASSIFIED AS? - Answer✔️✔️-PURE &
SPECULATIVE RISK
Defined as the MAXIMUM LIMIT of coverage available under a liability
policy DURING A POLICY YEAR- irregardless of the number of choices
that may occur - Answer✔️✔️-AGGREGATE LIMIT OF LIABILITY
MAMA IS DRIVING HER CAR THROUGH A RESIDENTIAL AREA AND
LOOSES CONTROL OF THE CAR AND CRASHED INTO CASY'S FRONT
PORCH. CASEY GETS INJURED. MAMA'S LIABILITY INS. POLICY HAS
A LIMIT SET AT $500,000. THIS AMOUNT APPLIES TO THE TOTAL OF
DAMAGES FOR ANY BODILY INJURY AND PROPERTY DAMAGE
RESULTING FROM ONE ACCIDENT.
Which type of limit of liability does Mama have? - Answer✔️✔️-COMBINED
SINGLE
WHEN A PERSON DECIDES NOT TO BUY INSURENCE BECAUSE OF
THE COST - WHAT METHOD OF RISK AS BEEN UNDERTAKEN? -
Answer✔️✔️-RETENTION
LEGAL LIABILITY IS WHEN A PERSON IS CONSIDERED LIABLE FOR
DAMAGE ACCORDING TO? - Answer✔️✔️-THE LAW
WHEN APRIL PURCHASED AN INSURENCE PLOICY WITH A LARGE
DEDUCTIBLE - WHAT RISK MANAGEMENT TECHNIQUE WAS SHE
PARCTICING? - Answer✔️✔️-RETENTION
WHAT ARE THE 3 CONDITIONS COMMONLY FOUND IN THE
INSURENCE POLICY? - Answer✔️✔️-APPRAISAL,
CANCELLATION & NON-RENEWAL, AND
SUBROGATION
THE FAILURE TO DISCLOSE ALL KNOWN FACTS IS CALLED? -
Answer✔️✔️-CONCEALMENT
THE PART OF A PROPERTY POLICY WHICH SHOWS THE AMOUNT
OF INSURENCE, PREMIUM AND POLICY TERMS IS THE? - Answer✔️✔️-
DECLARATIONS
2
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