Property & Casualty Insurance Exam - Questions & Answers (Rated 96%) Best Update 2024

Which of the following is NOT an element of negligence? a) libel b) duty c) breach d) unbroken chain {Ans: Libel}The part of the policy that sets forth the rules of conduct, duties, and obligations of the parties is called the: a) exclusions b) declarations c) insuring clause d) conditions {Ans: Conditions}What must an insurance company receive before it will be allowed to transact insurance in this state? a) Guaranty Association clearance b) Executive Director's inspection certificate c) Writ of compliance d) Certificate of Authority {Ans: Certificate of Authority}When a person buys insurance what method of handling risk has been undertaken? a) transfer b) reduction c) avoidance d) retention {Ans: Transfer}Something of value exchanged between the insurer and the insured is considered an: a) acceptance b) legal capacity c) consideration d) offer {Ans: Consideration}Negligence may be defined as: a) a situation that creates a probability of loss b) a latent defect or fault in property c) the inability to meet the burden of proof d) the failure to use reasonable and prudent care {Ans: The failure to use reasonable and prudent care}Which of the following would NOT be classified as personal property for insurance