General Insurance

Pataasin ang iyong marka sa homework at exams ngayon gamit ang Quizwiz!

Considered true to the best of the applicant's knowledge

Representations are written or oral statements made by the applicant that are

Express authority

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

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

What is a material misrepresentation?

Concealment

What term best describes the act of withholding material information that would be crucial to an underwriting decision?

Implied

Which authority is NOT stated in an agent's contract but is required for the agent to conduct business?

aleatory

Which of the following best describes the concept that the insured pays a small amount of premium for a large amount of risk on the part of the insurance company?

Fraternal benefit society

Which of the following entities is not an insurer but an organization formed to provide insurance benefits for members of an affiliated lodge or religious organization?

The loss must be catastrophic

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

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

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

It is issued to group insurance participants.

Which of the following is NOT true regarding a Certificate of Authority?

Certificate of authority

Which of the following must an insurer obtain in order to transact insurance within a given state?

Private insurers may be authorized to transact insurance by state insurance departments.

Which of the following statements is an accurate comparison between private and government insurers?

apparent

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

Premiums

All of the following are examples of risk retention EXCEPT

Avoidance

An individual was involved in a head-on collision while driving home one day. His injuries were not serious, and he recovered. However, he decided that in order to never be involved in another accident, he would not drive or ride in a car ever again. Which method of risk management does this describe?

Conditional

An insurance contract requires that both the insured and the insurer meet certain conditions in order for the contract to be enforceable. What contract characteristic does this describe?

Captive agent

An insurance producer who by contract is bound to write insurance for only one company is classified as a/an

Contracts of Adhesion

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

reduction

Following a career change, an insured is no longer required to perform many physical activities, so he has implemented a program where he walks and jogs for 45 minutes each morning. The insured has also eliminated most fatty foods from his diet. Which method of dealing with risk does this scenario describe?

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?

The loss may be intentional.

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 cause of loss insured against

Peril is most easily defined as


Kaugnay na mga set ng pag-aaral

Exam 3 Abnormal Psychology Chapter 10 powerpoint

View Set

Total Addressable Market, Serviceable Available Market, and Operator Actions

View Set

NU 270 Exam 1 Practice Questions

View Set

ACT 210 Chapter 8: Current Liabilities

View Set

TestOut IT Fundamentals Pro Chapter 5: All Section Quizzes

View Set