Quiz 1
An agent is trying to convince a potential insured to buy a policy from him, so he misrepresents the benefits of the policy. This is an example of
Fraud
Events or conditions that increase the changes of an insured loss occurring are referred to as
Hazards
Which provision states that if a policy allows for greater compensations that the financial loss incurred, the insured may only receive benefits for the amount lost
Indemnity
A life insurance policy has a legal purpose if there are both
Insurable interest and consent
A person who does not lock the doors or does not repair leaks shows an indifferent attitude. This person presents what type of hazard?
Morale
Which of the following is an example of apparent authority?
The agent accepts a premium payment after the end of the grace period
Who should the Insurer always represent?
The insured, not the company
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
By purchasing health insurance, what are you doing to your risk?
Transferring
An insurance agent's responsibilities include all of the following EXCEPT
represent the client
Peril is most easily defined as
the cause of loss insured against in an insurance policy
Officers who manage stock insurance companies are
elected by stockholders
Which of the following terms best describes what a person is doing when he takes a defensive driving course or deadbolt locks on the doors of his home?
Risk reduction
When the agents are acting within the scope of their contract, their actions will be assumed to be the acts of the
insurer
The requirement that an agent not co-mingle insurance monies with their own funds is known as
Fiduciary responsibility