Exam FX

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.

Because an agent is using stationery with the 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 (perceived authority). The appearance or the assumption of authority based on the actions, words, or deeds of the principal or because of circumstances the principal created.

What is a material misrepresentation

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

To legally transact insurance in this state, an insurer must obtain which of the following?

certificate of authority

When both parties to a contract must perform certain duties and follow rules of conduct to make the contract enforeable, the contract is.

conditional

Insurance is the transfer of

risk

when an individual purchases insurance, what risk management technigue is he or she practicing?

transfer

which of the following insurance options would be considered a risk-sharing arrangement?

Reciprocal

Which of the following insurance options would be considered a risk sharing arrangement

Reciprocal