QUIZ 17

All of the following are part of the six specs of a insurance policy except: A statement of the premium Duties of an insured after a claim The risks insured against. The parties between whom the contract is made

Duties of an insured after a claim

Losses that can be insured are those that are considered: Insurable events Contingent events Catastrophic events Predictable events

Insurable events

Who has the ability to legally bind insurance for the insurer? Insurance Solicitor Insurance Broker Insurance Administrator Insurance Agent

Insurance Agent

Which of the following is not a party to a contract of reinsurance? All are parties Insured Insurer Reinsurer

Insured

Neither party is required to communicate: relevant information opinion all are required material facts

opinion

Binders cannot be issued for which of the following? None of these Life insurance In excess of one million Disability Insurance

None of these

According to the California insurance law, all the following are reasons why either party may rescind a contract EXCEPT If a representation is false in a material point, whether affirmative or promissory, the injured party is entitled to rescind the contract from the time the representation becomes false. One party may rescind if the other party, intentionally or unintentionally, hides material information from them. Once a contract is signed, it can never be rescinded.

Once a contract is signed, it can never be rescinded.

Which of the following are not actions of transacting insurance? Remitting of premium payments to the insurer Negotiations preliminary to the execution of a contract The actual execution of a contract Solicitation of insurance

Remitting of premium payments to the insurer

Which is not a reason for a company to obtain reinsurance? Protect companies from catastrophic losses Protect companies from major losses Share the risk with another company Share in the loss ratio with another company

Share in the loss ratio with another company

Which of the following is an agreement between an insurer and the insured to transfer risk for payment. Transaction Execution Solicitation Negotiation

Transaction

Which of the following is a Personal Lines Licensee not allowed to transact? Stand alone Umbrella or excess liability insurance Stand alone earthquake and flood insurance Personal watercraft insurance Inland marine insurance covering personal property

Stand alone Umbrella or excess liability insurance

What could a penalty be for a person who transacts insurance without a valid license? A misdemeanor punishable by $75,000 but no jail time A felony punishable by $50,000 and 6 months in a county jail A misdemeanor punishable by $30,000 and 2 months in a county jail A misdemeanor punishable by $50,000 and 13 months in a county jail

A misdemeanor punishable by $30,000 and 2 months in a county jail

Which of the following would not be considered a binder? A verbal contract given to an insured that purchased a car in a different city. A verbal contract giving an insured automobile coverage for the weekend on their new car. A temporary contract between the agent and the insured usually 30 days. A temporary contract giving an insured coverage for their additional truck they bought over the weekend.

A temporary contract between the agent and the insured usually 30 days.

Which of the following can bind insurance? Solicitor Broker Agent Each can bind coverage

Agent

All the following are true with regards to insurance agents except: Agents always receive commissions and renewals on sales they transact. Agents represent the insurance company to the public. Insurance agents are authorized by an insurer to transact all classes of insurance except life and disability Agents are permitted to transact 24 hour coverage and disability insurance.

Agents always receive commissions and renewals on sales they transact.

Which licensee can transact all classes, except life and disability: P&C Solicitor P&C Insurance agent P&C Broker All of these

All of these

Which licensee is not appointed? Broker Agent Solicitor All are appointed.

Broker

Which of the following is not a class of insurance? Marine Auto Fire Casualty

Casualty

Johnny told the insurance agent that he thinks he drive about 10,000 miles a year, but in fact is more like 15,000. What term would best describe this situation? Misrepresentation Misstated fact Concealment Fraud

Misstated fact

The following acts are unlawful and are misdemeanors in California except: Acting as an agent for a nonadmitted insurer Transacting business thru a surplus lines broker who uses nothing but nonadmitted insurers Advertising for a nonadmitted insurer Placing business with a nonadmitted insurer if no other insurer will take the business

Transacting business thru a surplus lines broker who uses nothing but nonadmitted insurers

Which is not a power of a Managing General Agent? Collect premium moneys for producing broker/agents Underwrites gross direct written premium equal to or more than 10% of the policyholder surplus. Accept or decline risks Appoints local agents in that territory

Underwrites gross direct written premium equal to or more than 10% of the policyholder surplus.

An insurance solicitor may complete all the following transactions EXCEPT set sales appointments offer a quote make prospecting calls bind an insurer

bind an insurer

Aiding, assisting, or advertising for a nonadmitted is considered: ok, if you are a broker ok, with DOI permission never allowed a misdemeanor

misdemeanor

Which of the following are not reasons that either party may rescind a contract? One party hides material information from the other An insured knowingly tells the insurer that he has a Nissan Altima SE when it really is a LE model One party intentionally omits their son as a driver in the household An insured by accident tells the insurer that he is accident and ticket free when he really has 1 speeding ticket.

An insured knowingly tells the insurer that he has a Nissan Altima SE when it really is a LE model

All the following are true with regards to insurance brokers except: Brokers are authorized to transact all class of insurance except life and disability which includes health insurance. Brokers may deal with a maximum of 10 insurance companies. Brokers charge a fee for their services as well as receive commissions. Brokers represent the public to the insurance companies.

Brokers may deal with a maximum of 10 insurance companies.

Which one of the following would not constitute transaction of insurance? Negotiation Solicitation Execution of the contract Delivery of the policy

Delivery of the policy

If your agent asks you if you use nicotine products and you say you live very healthy. What have you just done? Giving the agent an expressed warranty You breached a warranty Giving the agent an implied warranty Stated a material warranty

Giving the agent an implied warranty

In insurance contracts, neither party are required to communicate the following items except: Information which the other party waives Known information Information that should be known Information that is material to the risk

Information that is material to the risk

Which of the following is not associated with the word insurance? Indemnify Transferring risk Known event Written contract

Known event

__________ is the rule used to determine the importance of a misrepresentation. Warranty Implied warranty Material warranty Materiality of concealment

Materiality of concealment

This class of insurance protects against loss from damage done by lightning, windstorm, tornado, and earthquake. Liability Homeowners Dwelling fire Miscellaneous

Miscellaneous

Workers' Compensation insurance is insurance against loss from _______. liability for damages to property or property interest of others injury imposed by the company liability imposed by law disability imposed by the insurance company

liability imposed by law

A representation can be altered or withdrawn: either before or after the insurance is issued only before the insurance is issued only after the insurance is issued at anytime the wrong representation has been discovered

only before the insurance is issued

Terminating a contract from the very beginning as if it never existed is: termination noncompliance cancellation rescission

rescission

Transactions subsequent requires a license because it means you are: selling quoting insurance negotiating insurance servicing a policy

servicing a policy