PROPERTY AND CASUALTY

10. An insured wants to transfer his personal insurance policy to a friend. Under what conditions would this be possible? A. The insured will need a written consent of the insurer. B. It is impossible to transfer a policy. C. The insured would have to surrender his policy to the insurer, and his friend could then ask to buy it. D. The insured can transfer the policy to his friend and then notify the insurer of the change.

A

3. Officers who manage stock insurance companies are A. Elected by the stockholders. B. Hired through an application process. C. Appointed by other company officials. D. Appointed by the Department of Insurance. - General Insurance -

A

12. Which of the following factors is NOT considered by an underwriter when determining the premium rates for an individual seeking insurance? A. Sex B. Race C. Age D. Medical history

B

5. All of the following are examples of risk retention EXCEPT A. Self-insurance B. Premiums C. Deductibles D. Copayments

B

2. According to the Law of Agency, a principal is represented by a/an A. Agent. B. Insurer. C. Broker. D. Insured.

A

7. The risk management technique that is used to prevent a specific loss by not exposing yourself to that activity is called A. Avoidance. B. Transfer. C. Reduction. D. Sharing.

A

4. When a homeowner purchases insurance on his home, what risk management technique is he practicing? A. Sharing B. Retention C. Transfer D. Avoidance

C

9. In any case where there is a controversy or dispute between the insurance company and the insured, the soliciting agent is the agent of the A. Applicant. B. Insured. C. Company. D. Beneficiary.

C

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

C

. 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 application is submitted.

D

1. An insurer formed under the laws of another country is known as a/an A. Domestic insurer. B. Foreign insurer. C. Admitted insurer. D. Alien insurer.

D

13. When an insurance company agrees to automatically assume a portion of the risk written by another insurance company, it is known as a(n) A. Coinsurance agreement. B. Insuring agreement. C. Reciprocal agreement. D. Reinsurance treaty. - General Insurance -

D

6. Which authority is NOT stated in an agent's contract but is required for the agent to conduct business? A. Apparent B. Assumed C. Express D. Implied

D

8. A state-issued document empowering an insurance company to become an admitted insurer is called A. Certificate of title. B. Certificate of deposit. C. Certificate of admission. D. Certificate of authority

D