General Insurance Property & Causality Louisiana

¡Supera tus tareas y exámenes ahora con Quizwiz!

An insurer has made all of the decisions regarding the provisions included in the insured's policy. The insured finds an objectionable provision and wants to negotiate it with the insurer but is not allowed to do so. Her only option is to reject the policy or accept it as is. Which contract feature does this describe?

Adhesion

What documentation grants express authority to an agent?

Agent's contract with the principal

An insured pays $100 premium every month for his insurance coverage, yet the insurer promises to pay $10,000 for a covered loss. What characteristics of an insurance contract does this describe?

Aleatory

Because an agent is using stationary with logo of an insurance company, applicants for insurance assume that the agent is authorized to transact on behalf of that insurer. What type of agent authority does this describe/

Apparent

What is surplus insurance?

Insurance placed with an unauthorized insurer

Which statement regarding insurable risk is NOT correct?

Insureds cannot be randomly selected

An insured stated on her application for life insurance that she had never had a heart attack, when in fact she had a series of minor heart attacks last year for which she sought medical attention. Which of the following will explain the reason a death benefit claim is denied?

Material misrepresentation

If an insurance underwriter discovers that an applicant for a policy has been convicted of submitting a fraudulent claim to an insurer in the past, the application may be rejected as a

Moral Hazard

Illegal use of narcotics would be an example of a

Moral Hazard

What is the definition of a unilateral contract?

One-sided: only one party makes an enforceable promise

A participating insurance policy may do which of the following?

Pay dividends to the policy owner

All of the following are examples of risk retention except

Premiums

A situation in which a person can only lose or have no change represents

Pure Risk

Which of the following is NOT the consideration in a policy?

The application given to a prospective insured

A peril is defined as:

The cause of the loss insured against.

In insurance, an offer is usually made when

The completed application is submitted

An insured wants to transfer his personal insurance policy to a friend. Under what conditions would this be possible?

The insured will need a written consent of the insurer

Not all losses are insurable, and there are certain requirements that must be met before a risk is a proper subject for insurance. These requirements include all of the following EXCEPT

The loss must be intentional

Which of the following is an example of a producers fiduciary duty?

The trust that a client places in the producer in regard to handling premiums

Which of the following is NOT a goal of risk retention?

To minimize the insured's level of liability in the event of a loss

If only one party to an insurance contract has made a legally enforceable promise, what kind of contract is it?

Unilateral

In insurance policies, the insured is not legally bound to any particular action in the insurance contract, but the insurer is legally obligated to pay losses covered by the policy. What contract element does this describe?

Unilateral

Which of the following is a statement that is guaranteed to be true, and if untrue, may breach an insurance contract?

Warranty

In forming an insurance contract, when does acceptance usually occur?

When an insurer's underwriter approves coverage

All of the following are examples of hazards EXCEPT

A fire in the kitchen of a home

The owner of a small business applies for a fire insurance policy with limits equal to 100% of the property's value. The owner has huge unsold inventories and a large personal gambling debt. From an underwriting standpoint, this might indicate

A moral hazard

For the purpose of insurance, risk is defined as

the uncertainty or chance of loss

What is material misrepresentation?

A statement made by the applicant that, upon discovery, would affect the underwriting decision of the insurance company

The proposed insured makes the premium on a new insurance policy. If the insured should die, the insurer will pay the death benefit to the beneficiary if the policy is approved. This is an example of what kind of contract?

Conditional

An insurer neglects to pay a legitimate claim that is covered under the terms of the policy. Which of the following insurance principles has the insurer violated?

Consideration

Contracts that are prepared by one party and submitted to the other party on a take-it-or-leave-it basis are classified as

Contracts of Adhesion

Which of the following best describes an insurance company that has been formed under the laws of this state?

Domestic

Which of the following is a unit of measurement an underwriter uses when determining the premium rates of insurance?

Exposure

Which are the following are the authorities that an agent can hold?

Expressed and Implied

The causes of loss insured against an insurance policy are known as

Perils


Conjuntos de estudio relacionados

Artificial Intelligence Norvig Ch 4

View Set

Ląstelių pažeidimas, priežastys, patogenezė. Ląstelių pažeidimo biocheminiai mechanizmai. Ląstelių pažeidimas. Ischeminis ir hipoksinis pažeidimas. Laisvųjų radikalų sukeliami pažeidimai. Oksidacinis stresas. Apoptozė-priežastys, patogenezė, skirtumai.

View Set