Texas Property & Casualty Insurance Exam Questions With Verified Solutions (420 Questions) 2024 Update

A condition or situation that presents a possibility of loss is a (an): {Ans: } exposureThe purpose of insurance is to: {Ans: } transfer riskWhich hazard can be described as a careless attitude or general indifference on the part of the insured toward the occurrence of loss? {Ans: } moraleWhich risk is insurable? {Ans: } pureWith regard to insurance, risk can be defined as: {Ans: } uncertainty regarding lossTreating risk by purchasing insurance is an example of what type of risk management? {Ans: } transferRobert and Carolyn live in a busy city and decide that not owning a car is the solution to not experience having a car stolen. What method describes this philosophy? {Ans: } avoidanceDishonesty on the part of an insured is an example of what? {Ans: } a moral hazardWhat is an example of reduction as a method of handling risk? {Ans: } Installing a burglar alarmDriving too fast and not wearing a seat belt are examples of? {Ans: } morale hazardThe risk that involves the chance of both loss and gain is? {Ans: } speculative riskSelf-insurance is an example of what kind of risk treatment? {Ans: } RetentionIf John's father transfers ownership of a house to