General insurance exam questions
Concealment
An applicant knowingly fails to comnucate info that would help and underwriter make a sound descion regarding coverage.
What insurance concept is associated with the names Weiss and Fitch?
Guides describing company financial integrity
In insurance transactions, fiduciary responsibility means
Handling insurer funds in a trust capacity
Which of the following is true regarding a risk retention group?
It is a liability insurance company owned by its members
All of the following would be considered an insurance transaction except?
Obtaining an insurance license
Which services are associated with standard & poors AM best?
Rating the financial strength of insurance companies
Which of the following is not a goal of risk retention?
To minimize the insured's level of liability in the event of loss
The authority granted to an agent through the agent's contract is referred to as
express authority
For the reported losses of an insured group to become more likely to equal the statistical probability of loss for that particular class, the insured group must become
larger
Which law is the foundation of the statistical prediction of loss upon which rates for insurance are calculated?
law of large numbers
If a court ordered payment for a loss that was not covered in the policy even if it was clearly worded, it would be an example of which legal concept?
Reasonable expectations
Adverse Selection is a concept best described as
Risks with higher probability of loss seeking insurance more often than other risks.
I'm terms of parties to a contract, which of the following does not describe a compent party?
The person must have at least comepleted Secondary education
An insurance producer who by contract is bound to write insurance for only one company is classified as an
captive agent
A producer who fails to separate premium monies from his own personal funds is guilty of
commingling