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