general insurance

which of the following factors is not considered by an underwriter when determining premium rates for an individual seeking insurance: a. age b. medical history c. sex d. IQ

IQ

any areas of ambiguity in an insurance contract are decided in favor of the insured because the contract is: a. an aleatory contract b. a personal contract c. a unilateral contract d. a contract of adhesion

a contract of adhesion

ABC insurance company is incorporated in Georgia but is doing business in massachusetts​; it is: a. a domestic insurer b. a foreign insurer c. an alien insurer d. an export insurer

a foreign insurer

a substandard risk compared to a standard risk would pay: a. a lower premium b. a higher premium c. the same premium d. premium is not based on risk

a higher premium

all of the following are ways to handle risk EXCEPT: a. paying a deducitble b. a reciprocal insurance exchange. c. never flying in an airplane d. buying insurance

a reciprocal insurance exchange.

the MIB is: a. a government entity that reviews medical information b. an association of physicians who write insurance rules c. a source of medical information to alert insuers to adverse medical history d. a directory of paramedical services and providers.

a source of medical information to alert insuers to adverse medical history

which of the following is an example of an agent's fiduciary responsibilities: a. an agent doing a review of his/her client's coverage b. an agent offering additional coverage to his client c. an agent promptly forwarding premiums to the insurance company d. an agent helping a client file a claim.

an agent promptly forwarding premiums to the insurance company

which of the following is the least expensive method of paying life insurance premiums: a. monthly b. quarterly c. semi-annual d. annual

annual

an agent's actions or deeds show what kind of authority: a. expressed b. agent c. implied d. apparent

apparent

all the following would have an insurable interest EXCEPT a: a. spouse b. child c. mother d. close friend

close friend

to prevent people from taking advantage of minors or the insane, a contract must have which element: a. offer and acceptance b. competent parties c. advice and consent d. legal purpose

competent parties

an applicant failed to disclose a material fact on an application. which of the following is correct? he is guilty of: a. twisting b. misrepresentation c. concealment d. coercion

concealment

which of the following is true in regard to a participating policy: a. dividends are paid to policyowners b. dividends are paid to stockholders c. the policy is issued by a stock company d. the policy is issued by a fraternal benefit society

dividends are paid to policyowners

under a single owner group life policy who receives the master contract: a. employer b. employee c. insurer d. agent

employer

all of the following are personal uses of life insurance EXCEPT: a. estate liquidation b. liquidity c. estate conservation d. cash accumulation

estate liquidation

events or conditions that increase the likelihood of a loss occurring are referred to as: a. perils b. hazards c. exposures d. risks

hazards

when the business is the owner, pays the premium, and is the beneficiary of a life insurance policy, this is an example of what kind of business insurance. a. key person b. buy sell agreement c. group life d. executive bonus

key person

mutual companies are owned by the: a. stockholders b. policy owners c. insurers d. board of directors

policy owners

if the producer collects the first premium with the application, and the applicant receives a conditional receipt from the agent, this means: a. the applicant is covered from that date if she is insurable at the end of the underwriting process b. the applicant is insurable only if she dies before the underwriting process is completed. c. all underwriting stops and the claim is declined if the applicant dies d. any statements made on the application are believed to be conditional.

the applicant is covered from that date if she is insurable at the end of the underwriting process

risk in insurance terminology refers to the: a. uncertainty of financial loss b. cause of a peril c. certainty of financial loss d. hazard that cuuses a claim

uncertainty of financial loss

a legal contract in which only one party makes a legally enforceable promise is called: a. unilateral b. adhesion c. conditional d. aleatory

unilateral

which of the following policies require the producer to have a license issued by FINRA: a. equity indexed life b. universal life c. adjustable d. variable life

variable life

a fraternal benefit society usually provides: a. insurance benefits to the public at large b. workers' compensation policies c. medicaid policies to all society members d. life or health insurance to its members

life or health insurance to its members

what factors are used to determine gross premium: a. mortality - interest b. mortality + expense - interest c. mortality + interest d. mortality - interest - expense

mortality + expense - interest

when debt, income, mortgage, and expenses are taken into account to determine the amount of insurance an insured should purchase it is known as the: a. debt to income approach b. human life value approach c. ordinary life approach d. needs approach

needs approach

if a proposed insured dies before the policy is issued but while in possession of a conditional receipt, the company will: a. not pay the policy proceeds under any circumstances b. always pay the policy proceeds. c. pay the policy proceeds only if it would have issued the policy to the proposed insured had he/she been living. d. pay the policy proceeds up to an established limit.

pay the policy proceeds only if it would have issued the policy to the proposed insured had he/she been living.

investigative consumer reports are used to investigate an application in all the following areas except: a. hobbies b. habits c. employment d. place of residency

place of residency

a statement of good health is required on a COD application at the time of: a. application b. policy delivery c. the paramedic's exam d. policy renewal

policy delivery

statements in the application for insurance that must be true to the best of the applicant's knowledge are called: a. warranties b. representations c. waivers d. ambiguities.

representations

what type of risk allows both gains and losses: a. pure b. exposure c. speculative d. hazardous

speculative

if an insurer requests medical information about an applicant, who's written consent is needed: a. the physician b. the applicant c. the insurer d. the policy owner

the applicant