general insurance test-or

When an insurance company agrees to automatically assume a portion of the risk written by another insurance company, it is known as a(n)

Reinsurance treaty.

Adverse selection is a concept best described as

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

Which type of authority is based on the actions, words, or deeds of the principal?

Apparent

What insurance concept is associated with the words "Weiss" and "Fitch"?

Guides describing company financial integrity

Concerning insurance, the definition of a fiduciary responsibility is

Handling insurers funds in trust capacity

A group's reported losses are more likely to become equal to the statistical probability of loss,

The larger group

An insurance producer who by contract is bound to write insurance for only one company or group of companies is classified as a/an

captive agent

A state-issued document empowering an insurance company to become an admitted insurer is called

cert of authority

An applicant who knowingly fails to communicate a fact that would help an underwriter make a sound decision regarding coverage is guilty of

concealment

All of the following are examples of risk retention EXCEPT

Premiums

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

The causes of loss insured against in an insurance policy are known as

perils

How does reinsurance benefit the insurer?

it helps protect against catastrophic lost

An individual applies for a life policy. Two years ago he suffered a head injury from an accident, so he cannot remember parts of his past, but is otherwise competent. He has also been hospitalized for drug abuse, but does not remember this when applying for insurance. The insurer issues the policy and learns of his history 1 year later. What will probably happen?

the policy will not be affected