Missed quiz questions after course completion

In insurance, an offer is usually made when a. an applicant submits an application to the insurer b. the insurer approves the application and receives the initial premium c. the agent hands the policy to the policyholder d. an agent explains a policy to a potential applicant

A. An applicate submits an application to the insurer

Insurance producers must ensure that contracts they recommend are in the best interest of the insured. This is called A. Suitability B. Client protection C. Approval D. Underwriting

A. Suitability

Which of the following best describes the concept that the insured pays a small amount of a premium for a large amount of risk on the part of the insurance company? A.Warranty B. Aleartory C. Adhesion D. Subrogation

B. Aleatory

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? A. Assumed B. Apparent C. Express D. Implied

B. Apparent

Which of the following is another term for an authorized insurer? A. Licensed B. Legal C. Admitted D. Certified

C. Admitted

Which of the following is a statement that is guaranteed to be true, and if untrye, may breach an insurance contract? A. Indemnity B. Representation C. Warranty D. Concealment

C. Warranty

An insured pays a $100 premium every month for his insurance coverage, yet the insurer promises to pay $10,000 for a covered loss. What characteristic of an insurance contract does this describe? A. Good Health B. Adhesion C. Conditional D. Aleatory

D. Aleatory

An insurance company receives an application with some information missing and issues the policy anyway. What is this called? A. Estoppel B. Subrogation C. Aleatory D. Waiver

D. Waiver

A producer who fails to separate premium monies from his own personal funds is guilty of A. theft B. Commingling C. Larceny D. Embezzlement

N. Commingling

If during the underwriting process an insurer obtains personal information about an applicant from the applicant, when must the insurer provide notice of its information practices? A. At the time of policy delivery B. Never, since the information was obtained from the applicant D. At the time of the applicaiton D. At the time the insurer first collects the information

A. At the time of policy delviery

All of the following are personal uses of life insurance EXCEPT A. Buy-sell agreement B. Survivor protection C. Estate creation D. Cash accumulation

A. Buy-Sell agreement

An insurance producer who by contract is bound to write insurance for only one company is classified as a A. Captive agent B. Solicitor C. Broker D. IIndependent producer

A. Captive agent

In forming an insurance contract, when does acceptance usually occur? A. When an insurer's underwriter approves coverage B. When an insurer delivers the policy C. When an insurer receives an application D. When an insured submits an application

A. When an insurer's underwriter approves coverage

A tornado that destroys property would be an example of A. peril B. Physical hazard C. A peril D. A pure risk

C. Peril

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? A, Approved B. Authorized C. Certified D. Qualified

B. Authorized

Which of the following types of agent authority is also called "perceived authority"? A. Express B. Implied C. Fiduciary D. Apparent

D. Apparent

In the event the key employee quits or is terminated, what provision provides for the owner of the policy to transfer coverage to the replacement employee, provided the new employee provides evidence of insurability? A. Consideration B. Misstatement of age C. Free look D. Change of insured

D. Change of insured