General Insurance

Fails to mention chest pin

Concealmeant

Which of the following are the authorities that an agent can hold?

Express and implied

In case of a loss, he indemnity provision in insurance policies

restores an insured person the same financial state as before the loss

For the purpose of insurance, risk is defined as

the uncertainty or chance of loss

What documentation grants express authority to an agent?

Agent's contract with principal

In insurance transactions, fiduciary responsibility means

Handling insurer funds in a trust capacity

A participating insurance policy may do which of the following

Pay dividends to the policyholder

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

Alien Insurer

An individual's tendency to be dishonest would be indicative of a

Moral Hazard

Which of the following is the closest term to an authorized insurer?

admitted

What documentation grants express authority to an agent?

Agent's contract with the principal

An insured purchased an insurance policy 5 years ago. Last year, she received a dividend check from the insurance company that was not taxable. This year, she did not receive a check from the insurer. From what type of insurer did the insured purchase the policy?

Mutual

Who might receive dividends from a mutual insurer?

Policyholders

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

Investing in the stock market

Which of the following is an example of a producer's fiduciary duty?

The trust that a client places in the producer in regard to handling premiums

Material misrepresentation

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

The insurer may suspect that a moral hazard exists if the policyholder

is not honest about his health on an application for insurance

Because an agent is using stationery with the logo of an insurance company, applicants for insurance assume that the agent is authorized to transact on behalf of that insurer. What type of agent authority does this describe?

Apparent

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

Concelment

In order for an insurer to legally transact insurance, it must obtain which of the following?

Certificate of Authority

Which of the following is NOT an essential element of an insurance contract?

Counteroffer

An insured stated on her application for life insurance that she never had a heart attack, when in fact she had a series of minor heart attacks last year for which she sought medical attention. Which of the following will explain the reason a death benefit claim is denied?

Material misrepresentation

All of following are examples of risk retention EXCEPT

Premiums

If an insurer meets the state's financial requirements and is approved to transact business in the state, it is considered to be

Authorized

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

What is the term for the entity that an agent represents regarding contractual agreements with third parties?

Principal

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

Promptly forwarding premiums to the insurance company

Which of the following is NOT the consideration in a policy?

The application given to a prospective insured