Thrivent chapter 1 quiz

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

captive agent

An insurance company sells an insurance policy over the phone in response to a TV ad. Which of the following best describes this act

direct-response marketing

What mechanism allows individuals to spread their risk of loss to a larger group?

insurance

All of the following are examples of risk retention except

premiums

Which of the following insurance options would be considered a risk sharing arrangement?

reciprocal

In insurance transactions, fiduciary responsibility means

Handling insurer funds in a trust capacity

What is the major difference between a stock company and a mutual company

Ownership

The risk of loss may be classified as

Pure risk and speculative risk

Which of the following is not a goal of risk retention

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

In forming an insurance contract, when does acceptance usually occur?

When an insurer's underwriter approves coverage

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?

Aleatory

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

Commingling

The authority granted to an agent through the agents contracts is referred to as

Express authority

The requirement that agents not commingle insurance monies with their own funds is known as

Fiduciary responsibility

In insurance policies, the insured is not legally bound to any particular action in the insurance contract, but the insurer is legally obligated to pay losses covered by the policy. What contract element does this describe?

unilateral