Property vs Casualty: What is considered property? - Correct Answer Structure & Personal Property
Property vs Casualty: What is considered casualty? - Correct Answer Non-property losses. Legal liability to others. 3rd Party
Risk - Correct Answer uncertainty of financial loss
Texas Property & Casualty License Exam
Questions and Answers (Latest Update
2024)
Property vs Casualty: What is considered property? - Correct
Answer ✅Structure & Personal Property
Property vs Casualty: What is considered casualty? - Correct
Answer ✅Non-property losses. Legal liability to others. 3rd
Party
Risk - Correct Answer ✅uncertainty of financial loss
Pure Risk - Correct Answer ✅Chance of Loss
Speculative Risk - Correct Answer ✅Chance of Loss or Gain
(Gamble)
Insurance (covers which type of risk?) - Correct Answer
✅Pure Risk Only
How does the law of large numbers apply in insurance? -
Correct Answer ✅Actuaries use the law of large numbers
to estimate claims
What is the law of large numbers? - Correct Answer ✅as
the number of a similar loss exposure increases, the more
accurate claims can be predicted from the group.
What is a peril? - Correct Answer ✅cause of loss
What is a hazard? - Correct Answer ✅things that increase
the chance of a peril happening
Three types of hazards - Correct Answer ✅Physical: visible
characteristic (dead tree)
Moral: Dishonest tendencies
Morale: Attitude of carelessness
Proximate Cause - Correct Answer ✅First cause in an
unbroken chain of events
, Texas Property & Casualty License Exam
Questions and Answers (Latest Update
2024)
Elements of a legal contract (CALC) - Correct Answer ✅C -
Competent parties (18/Right frame of mind)
A - Agreement (Both parties agree)
L - Legal Purpose (The risk is LEGAL)
C - Consideration (It has to be fair)
What is representation? - Correct Answer ✅Information
believed to be true.
What is misrepresentation? - Correct Answer ✅Information
that is not true. False information.
What is material misrepresentation? - Correct Answer
✅Information that is not true but would have caused the
insurer not to issue the policy. (4 prev spd tix)
What is fraud? - Correct Answer ✅An all out effort by one
party to deceive and cheat the other.
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