Primerica Ch 1

An agent's actions show what kind of authority?

Apparent

Representations are written or oral statements made by the applicant that are

Considered true to the best of the applicant's knowledge

What is NOT an element of an insurance contract?

Estoppel

In an insurance contract, consideration refers to

Exchange of something of value by both parties

The federal law that permits an applicant for insurance to question the validity and source of credit information is called

Fair Credit Reporting Act

An insurance company that is formed under the laws of another state is known as what type of insurer?

Foreign

The National Conference of Insurance Legislators (NCOIL) was created to

Help legislators make informed decisions on insurance issues

What does the Life Insurance Guaranty Association guard against?

Insurer insolvency

How does reinsurance benefit the insurer?

It helps protect against catastrophic losses

Mutual companies are owned by

Policyowners

Which of the following is an example of an agent's fiduciary responsibilities?

Promptly forwarding premiums to the insurer

In insurance contracts, a warranty is a

Statement that must be true

Risk in insurance terminology refers to

The uncertainty of financial loss

Which method of dealing with risk is applied when a person purchases insurance?

Transfer