General Insurance

What age do you have to be to hold insurance in Oregon?

18

Which produces evaluations of insurers financial status often used by state departments of ins

AM Best

All of the following actions by a person could be described as risk avoidance EXCEPT

Investing in the stock market

In group ins, what is the policy called?

Master policy

The cause of loss injured against in an insurance policy are known as

Perils

Which of the following is true regarding a market value adjusted annuity

The owner is guaranteed a fixed interest rate for a specific period of time

A tornado that destroys property would be an example of which of the following?

A peril

Ins policies are not drawn up through negotiations, and an insured has little to say about its provisions. What contract characteristic does this describe?

Adhesion

What documentation grants express authority to an agent?

Agents contract with the principal

An insured pays $100 premium every month for his coverage, yet the insurer promises to pay $10k for a covered loss. Which characteristic of an ins contract does this describe?

Aleatory

When transacting business in this state an insurer formed under the laws of another country is know as a/an

Alien Insurer

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

Certificate of Authority

Which is a characteristic of a Reciprocal Insurance Exchange?

Chief admin of the insurer is call an "attorney-in-fact"

When applying for an imdv ins policy, an applicant states that he went to the doctor for nausea, but fails to mention that he was having severe chest pains. This is an ex of?

Concealment

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

Consideration

When an insured makes truthful statements on the application for insurance and pays the required premium, it is known as which of the following?

Consideration

An ins co sells and ins policy over the phone in response to a TV ad. Which best describes this act?

Direct Response Marketing

Which of the following scenarios will incur a 10% tax penalty on distributions?

Distributions are made on a policy before age 59.5

The authority granted to an agent through the agent's contract is referred to as

Express Authority

What insurance is associated with the names Weiss & Fitch?

Guides describing company financial integrity

Pertaining to insurance, what is the definition of a fiduciary responsibility?

Promptly forwarding premiums to the ins co

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

Pure Risk

Which type of ins is based on mutual agreements among subscribers?

Recipricol Insurance

Installing deadbolt locks on the doors of a home is an ex of which method of handling risk?

Reduction

A policy owner who is also the insured wants to name her husband as the beneficiary of her life policy. She also wishes to retain all of the rights of ownership. The policy owner should have her husband named as the?

Revocable Beneficiary

An applicant has a history of heart disease in his family, so he would like to buy a health insurance policy that strictly covers heart disease. What type of policy is this?

Specified Coverage

In forming a ins contract, when does acceptance usually occur?

When an insurer's underwriter approves coverage

Which of the following types of agent authority is also called "perceived authority"?

Apparent

In Ins transactions, fiduciary responsibility means

Handling insurer funds in a trust capacity

An association could buy group insurance for its members if it meets all of the following requirements EXCEPT

Has at least 50 members

A medical ins plan in which the health care provider is paid a regular fixed amount for providing care to the insured and does not receive additional amounts of compensation dependent upon the procedure performed is called

Pre-Paid Plan

In a group policy, who is issued a certificate of insurance?

The individual insured

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

The insured will need a written consent of the insurer

Which of the following is NOT covered by Medicare?

Cosmetic Surgery

Which of the following is the basis for a claim against an ins policy?

Loss

Which of the following is NOT a characteristic of insurable risk?

Loss must be catastrophic

The premium of a survivorship life policy compared with that of a joint life policy would be

Lower

The risk of loss may be classified as

Pure risk and speculative risk

Which services are associated with Standard & Poor's and AM Best

Rating the financial strength of in co's

Events in which a person has both the chance or winning and losing are classified as

Speculative Risk

All of the following coverages are usually included under a dental ins plan EXCEPT

Teeth Whitening

Which would qualify as a competent party in an ins contract?

The applicant has a prior felony

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 may be intentional

Which is NOT a characteristic of insurable risk?

The loss must be catastrophic

Which of the following is NOT a characteristic of an insurable risk?

The loss must be catastrophic

All of the following statements are true regarding installments for a fixed amount EXCEPT

The payments will stop when the annuitant dies

Risk is defined as

The uncertainty or chance of loss

An insurer offers a policy very similar to Medicare. An agent tells an applicant that the policy is Medicare. Which of the following is true?

This practice is illegal

Which of the following products requires a securities license?

Variable Annuity