Exam FX general insurance concepts
a life insurance policy has a legal purpose if both of which of the following elements exist?
Insurable interest and consent
An applicant knowingly fails to communicate information that would help an underwriter make a sound decision regarding coverage. This is an example of breach of warranty concealment waiver fraud
concealment
To legally transact insurance in this state, an insurer must obtain which of the following?
Certificate of Authority
In insurance, an offer is usually made when a) The insurer approves the application and receives the initial premium. b) The agent hands the policy to the policyholder. c) An agent explains a policy to a potential applicant. d) The completed application is submitted.
D
which of the following is NOT true regarding a certificate of authority?
It is issued to group insurance participants
A tornado that destroys property would be an example of which of the following? a peril a pure risk a loss a physical hazard
a peril
which of the following is the closest term to an authorized insurer? licensed legal admitted certified
admitted
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? express implied assumed apparent
apparent
What term best describes the act of withholding material information that would be crucial in the underwriting decision breach of warranty concealment witholding leading
concealment
An insurer neglects to pay a legitimate claim that is covered under the terms of the policy. Which of the following insurance principles has the insurer violated? representation adhesion consideration good faith
consideration
all of the following are examples of risk retention except co-payments self insurance premiums deductions
premiums
Pertaining to insurance, what is the definition of a fiduciary responsibility?
propmtly forwarding premiums to their insurance company
in case of a loss, the indemnity provision in insurance policies
restores an insured person to the same financial state as before the loss
when does acceptance usually occur for an insurance contract?
when an insurers underwriter approves the coverage
which of the following types of agent authority is also called "perceived authority" express implied fiduciary apparent
apparent
Which insurance principle states that if a policy allows for greater compensation than the financial loss incurred, the insured may only receive benefits for the amount lost?
indemnity