General Insurance Quiz

What term best describes the hasta with Holding material information that would be crucial to an underwriting decision

A.Leading B.Breach of warranty C.Concealment D.With holding

When an insured makes truthful statement on the application for insurance and paste it required premium it is known as which of the following

A. Legal purpose B. Contract of adhesion C. Acceptance D. Consideration

Uninsured wants to transfer his personal insurance policy to a friend under what conditions would this be possible

A.It is impossible to transfer A policy B. The insured would have to surrender his policy to the insurer and his friend could then ask to buy it C.The insured can transfer the policy to his friend and then notify the insurer of a charge D. The insured will need a written consent of the insurer

which of the following statements is an accurate comparison between private and government insurers

A. Insurance provided by the government is called federal insurance B. Private insurers offer fewer lines of insurance then government insurers C. Private insurers provide insurance in areas where the government will not D. Private insurers may be authorized to transact insurance by state insurance departments

Insurance transactions fiduciary responsibility means

A.Being liable with respect to payment of claims B.Commingling premiums with agents personal funds C.Handling insurers funds and in a trust capacity D. Maintaining a good credit record

A tornado that destroys property would be an example which of the following

A. A peril B. A pure risk C. A loss D. A physical hazard

Which insurance principle states that if a policy allows for greater compensation doesn't financial losses incurred the insured may only receive benefits for the amount lost

A. Stop loss B. Consideration C. Reasonable expectations D. Indemnity

Which of the following types of agent authorities is also called "perceived authority"

A. Fiduciary B. Apparent C. Express D. Implied

Which of the following is not a characteristic of an insurable risk

A. Insurance cannot be mandatory B. The insurable race needs to be statistically predictable C. Uninsurable Christmas involve a loss that is definite as to cause, time, place, and amount D.Insureds cannot be randomly selected

An insurance producer who by contract is bound to write insurance for only one company is classified as a

A. Solicitor B. Broker C. Independent producer D. Captive agent

Which of the following is not a goal of risk retention

A. To increase control of claim reserving and claims settlement B. Define losses that cannot be insured C. To minimize the insured's level of liability in the event of loss D. To reduce expenses and improve cash flow

Fiduciary

involving trust, especially with regard to the relationship between a trustee and a beneficiary.