Practice General Insurance

Within how many days of requesting an investigative consumer report must an insurer notify the consumer in writing that the report will take place?

3 days

What is a fiduciary who handles insured funds in a trust capacity called?

Agent

Which of the following is not a marketing and distribution system used by insurers? A. Branch Office System B. Direct Marketing C. Broker Agency System D. American Agency System

Broker Agency System

Which of the following is not the consideration in a policy? A. The application given to a prospective insured B. The premium amount paid at the time of application C. The promise to pay covered losses D. Something of value exchanged between parties

The application given to a prospective insured

A broker is first and foremost responsible to?

The insurer

The contract in which only one party is legally bound to contractual obligations after a premium is paid is known as a?

Unilateral contract

Advertisements for insurance, in magazines or by parcel post, are examples under what type of marketing systems?

Direct Response Method

Rita was the insured and policyowner of a policy that named her husband as the beneficiary. Upon her husband's death, she decided to change the beneficiary designation to her bff since she has no close living family. The insurance company will?

Effect the beneficiary change

An applicant is denied insurance because of info found in the consumer report. What requires the insurance company to supply the applicant with the name and address of the consumer reporting company?

Fair credit reporting act

Those insurers that are incorporated in another state, but doing business in this state, are considered?

Foreign

Risk reduction is?

Minimizing a risk

What contract is offered on an "accept it or leave it basis?"

Contract of adhesion

Any ambiguity in an insurance contract will be interpreted in favor or?

The insured

A licensed producer represents the?

Insurer

This type of insurer is operated on a not for profit basis and is owned by its policyowners?

Mutual insurers

Which of the following is false regarding a Stock Insurance company? A. They are managed by Office and Directors B. Nonassessable policies are issued C. Stockholders elect the Board of Directors and receive taxable dividends D. Ownership rests w/ stockholders

Nonassessable policies are issued

The employee retirement income security act (ERISA) was passed by?

Congress

Contract law requires each party to give something of value for it to be a legal contract. This value is called?

Consideration

Since it is the insurance company that designs and writes the insurance policy, any resulting ambiguity in the language is typically resolved in the clients favor. This is why an insurance policy is referred to as?

Contract of Adhension

Concerning insurance, the definition of a fiduciary responsibility is? A. Handling insurer funds in a trust capacity B. Commingling premiums collected with agent's personal funds C. Handling assets or money belonging to others D. Being liable for negligence with respect to clients application

Handling insurer funds in a trust capacity

The authority not stated in an agent's contract and it allows an agent the ability to act outside the authority granted in an agreement and extends the company's liability is?

Implied Authority

The fact that the insured is restored to the same financial condition as prior to a loss and should not profit or lose from an insurance transaction is considered?

Indemnification

Consideration, an element of an insurance contract, include all the following except? A. Promises B. Statements on the application C. Application D. Payment of Renewals

Payment of renewals