TEXAS PROPERTY AND CASUALTY INSURANCE, INSURANCE PRACTICE EXAM, P&C TEST BANK, TEXAS INSURANCE EXAM PREP, PROPERTY CASUALTY QUESTIONS, LATEST INSURANCE TEST

TEXAS PROPERTY AND CASUALTY INSURANCE, INSURANCE PRACTICE EXAM, P&C TEST BANK, TEXAS INSURANCE EXAM PREP, PROPERTY CASUALTY QUESTIONS, LATEST INSURANCE TEST
Question: Which of the following represent pure risk?
Correct Answer: margaret's dog is temperamental. she's
afraid it will bite a neighbor someday, and she will be held
responsible.
Question: The law of large numbers
Correct Answer: states that the more examples used to
develop a statistic, the more reliable the statistic will be
Question: LaTonya purchases a house from John. She
borrows $75,000 from First City Bank which, along with her
$25,000 down payment, equals the $100,000 purchase price
of the home. Who has an insurable interest in this home?
Correct Answer: LaTonya and the bank
Question: Which is not a criteria a risk must meet to be
insurable?
Correct Answer: risk of loss is not definite
Question: Highpower Industries has an automatic sprinkler
system installed in its office building. This is an example of
which risk management method?
Correct Answer: Reduction
Question: Benson Pharmaceutical Company decides not to
manufacture a new drug after determining that it has serious
potential side effects. This is an example of which risk
management method?
Correct Answer: Avoidance

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