General insurance exam questions

Concealment

An applicant knowingly fails to comnucate info that would help and underwriter make a sound descion regarding coverage.

What insurance concept is associated with the names Weiss and Fitch?

Guides describing company financial integrity

In insurance transactions, fiduciary responsibility means

Handling insurer funds in a trust capacity

Which of the following is true regarding a risk retention group?

It is a liability insurance company owned by its members

All of the following would be considered an insurance transaction except?

Obtaining an insurance license

Which services are associated with standard & poors AM best?

Rating the financial strength of insurance companies

Which of the following is not a goal of risk retention?

To minimize the insured's level of liability in the event of loss

The authority granted to an agent through the agent's contract is referred to as

express authority

For the reported losses of an insured group to become more likely to equal the statistical probability of loss for that particular class, the insured group must become

larger

Which law is the foundation of the statistical prediction of loss upon which rates for insurance are calculated?

law of large numbers

If a court ordered payment for a loss that was not covered in the policy even if it was clearly worded, it would be an example of which legal concept?

Reasonable expectations

Adverse Selection is a concept best described as

Risks with higher probability of loss seeking insurance more often than other risks.

I'm terms of parties to a contract, which of the following does not describe a compent party?

The person must have at least comepleted Secondary education

An insurance producer who by contract is bound to write insurance for only one company is classified as an

captive agent

A producer who fails to separate premium monies from his own personal funds is guilty of

commingling