EXAM INSURANCE (USE)
Producer licenses are valid from the initial licensing or reinstatement period until
the licensees birth month, plus 1 year
The general powers and duties of the Insurance Department include all of the following EXCEPT
1. Determining if a producer has acted in violation of the Insurance Code.2. Enacting statutes to.3. Distributing information regarding the Department's activities.4. Enforcing the Insurance Code. Enacting statues to regulate the insurance industry
The Businessowners policy (BOP) extension coverage form for personal property off-premises is limited to
5000
Premiums collected on behalf of the insurance company by an agent will be held in what capacity?
Fiduciary
When agents, brokers, or solicitors handle premiums for an insurer, they are acting in which capacity?
Fiduciary
Using an air-cooled engine, a proposed insured has developed a new, experimental aircraft. If the inventor applies for liability insurance, what rating type will the insurer most likely use?
Judgment
An insurer may cancel or nonrenew personal insurance based upon which of the following
Non-payment, material Misrepresentation, or Fraud
Which of the following terms means termination of insurance policy at its expiration date by not offering a policy continuation or replacement?
Nonrenewal
Property insurance that provides $100,000 coverage for a building and $50,000 coverage for personal property at a single location is called
Specific coverage
Which of the following would be a proper choice of policy for a company that transports goods that are irreplaceable in nature?
Valued policy
When does the federal emergency flood insurance program go in effect?
When a community applies for the program
An insurance agent visits a potential client and explains various types of policies. The customer displays a lack of interest so the agent guarantees higher dividends than he knows would be possible
misrepresentation
Which of the following types of authority is also called "perceived authority?
Apparent
Which provision defines how the policy will respond if there is other valid insurance written on the same risk?
other insurance
