General insurance

What documentation grants express authority to an agent?

Agent's contract with the principal

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 the car ever again. Which method of risk management does this best describe?

Avoidance

To legally transact insurance in this day, and then share must obtain which of the following?

Certificate of authority

Which of the following best describes insurance company that has been formed under the law of the state?

Domestic

All the following actions by a person can be described as a risk avoidance except?

Investing in the stock market

The insurer may suspect that a moral hazard exist the policyholder?

Is not honest about his health on an application for insurance

Who might receive dividends from a mutual insurer?

Policyholders

If a court ordered payment for the 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

Events in which a person has both a chance of winning or losing are classified as?

Speculative risk

Which of the following insurers are owned by stockholders?

Stock

Which of the following would classify as a competent party in an insurance contract?

The applicant has a prior felony conviction

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

apparent

An insurance company is domiciled in Montana and transacts insurance in Wyoming. Which term best describes the insurers classification in Wyoming?

foreign

Installing deadbolt locks on the doors of the home is an example of which method of handling a risk?

reduction

Insurance is the transfer of?

risk