Qbank 3 (general insurance)
When Harry sells his car to his brother, Nate, he transfers his auto insurance policy to him as well. Harry's insurer will
disallow the process because auto insurance is a personal contract
When there is no coverage available through an authorized carrier in the state, this insurance is referred to as
excess and surplus lines
An insurance company that is owned by its policyowners is known as
A mutual life insurance company
Which of the following types of agent authority is specifically set forth in writing in the agent's contract?
Express
Self-insurance is an example of what kind of risk treatment?
Retention
Which kind of insurance company is owned by individuals who buy shares but are not entitled to receive policy dividends?
Stock insurance company
Hachiro, age 45, purchased a life insurance policy from AllPro Insurers and named his 8-year-old son, Takeshi, as a beneficiary. Which of the following statements regarding this situation is CORRECT?
Takeshi is not a party to the insurance contract
A contract in which one insurer cedes all or part of a risk to another is known as
reinsurance
All of the following are methods of handling risk EXCEPT
repetition
All statements made by an applicant in an application for life insurance are considered to be
representations
In order for any contract, including an insurance policy, to be legal it must contain all of the following elements EXCEPT
representations
All of the following are methods of handling risk EXCEPT
resistance
In insurance,
the insurer is the principal and the producer is the agent
A health insurance policy does NOT go into force if
the producer completes the application
Dying too soon is an example of
a peril
A producer who receives life insurance premiums holds the money in trust as a:
A fiduciary
Which of the following statements regarding Lloyd's associations is CORRECT?
Insurance is provided by individual underwriters.
Which of the following statements regarding fraternal benefit societies is NOT true?
Policies are called contracts
Which of the following is NOT a characteristic of fraternal benefit societies?
Profit-making organization with capital stock
Which of the following terms indicates that a life insurance contract contains the enforceable promises of only one party?
Unilateral