Quiz one insurance
A producer who fails to segregate premium monies from his own personal funds is guilty of
commingling
insurance policies are not drawn up through negations, an insured has little to say about its provisions. what contract characteristic does this describe?
A contract of adhesion is prepared by only the insurer; the insureds only option is to accept or reject the policy as it is written.
In order for an insurer to legally transact insurance, it must obtain which of the following?
Certificate of authority
An insurance organization that does not issue policies but provides a meeting place for underwriters to conduct business is known as
Lloyds association
which of the following best describes the aleatory nature of an insurance contract?
exchanged of unequal values
The authority granted to an agent through the agent's contract is referred to as
express authority
The authority granted to an agent through the agent's contract is referred to as
express powers are written into the contract between the insure and the agent
Events or conditions that increase the chances of an insured loss occurring are referred to as
Hazards
an insurance, an offer is usually made when?
An applicant submits an application to the insurer
what insurance concept is associated with the names Weiss and Fitch?
Guides describing company financial integrity
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?
Reciprocal
The causes of loss insured against in an insurance policy are known as
Perils
Hazard is best defined as
Something that increases the risk of loss
What documentation grants express authority to an agent?
State provisions
what document grants express authority to an agent?
agents contract with the principal
Events in which a person has both the chance of winning or losing are classified as
speculative risk
example of reciprocal insurance exchange:
the chief administrator of the insurer is called the attorney in fact
If an insurer meets the state's financial requirements and is approved to transact business in the state, it is considered what type of insurer?
Authorized
Which of the following is not true regarding a certificate of authority?
it is issued to group insurance participants
Units with the same or similar exposure to loss are referred to as
Homogeneous
Which of the following is a characteristic of the reciprocal insurance exchange?
the chief administrator of the insurer is called the attorney in fact.
In insurance policies, the insured is not legally bound to any particular action in the insurance contract, but the insurer is legally obligated to pay losses covered by the policy. what contract element does this describe?
unilateral contract (insurer must pay losses covered by the policy)