Property and Casualty Unit 1 Quiz

What is a contract or device for transferring risk
from a person, business, or organization to an
insurance company?

Which of the following represents a pure risk?

Suzanne regularly leaves her side door unlocked
when she leaves for work. One afternoon, a
thief entered her apartment and stole all of her
jewelry. What was the hazard in this example?

Since Jeff lives in a good neighborhood across
the street from the fire station, he decides
to cancel his fire insurance policy. This is an
example of which risk management method?

Sometimes an individual or business has an
exceptionally large or specialized risk that no
authorized insurer can or will cover. In this case,
the individual or business may call

Insurance companies often purchase insurance
to cover their own exposure to loss. This is
called

Which is NOT an element of an insurable risk?

A person in a position of financial trust is called

The authority made explicit in a producer’s
written agency agreement with the insurer is
known as

The ABC Insurance Company is incorporated in
Mexico. While doing business in Texas, it is