Karen Kadura
Quiz by , created more than 1 year ago

Life/Health Insurance Study Quiz on Chapter 1, created by Karen Kadura on 21/10/2017.

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Karen Kadura
Created by Karen Kadura over 6 years ago
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Chapter 1

Question 1 of 14

1

A ________ insurance company is owned by its policyholders.

Select one of the following:

  • Stock

  • Reciprocal

  • Fraternal Benefits Society

  • Mutual

Explanation

Question 2 of 14

1

If an insurance company wants to transfer all or part of the risk it has accepted, it would buy which of the following types of insurance?

Select one of the following:

  • Residual

  • Reinsurance

  • Reciprocal

  • Insurer

Explanation

Question 3 of 14

1

Which of the following in an insurance company that is organized under the laws of another state within the United States?

Select one of the following:

  • Domestic

  • Alien

  • Foreign

  • Authorized

Explanation

Question 4 of 14

1

Which insurance company department accepts the insurance risk?

Select one of the following:

  • Executive

  • Actuarial

  • Claims

  • Underwriting

Explanation

Question 5 of 14

1

Which of the following individuals represents the insurance company when selling an insurance policy?

Select one of the following:

  • Producer

  • Broker

  • Adjuster

  • Insurer

Explanation

Question 6 of 14

1

Which of the following type of authority does the public assume an agent has when quoting insurance?

Select one of the following:

  • Authorized

  • Express

  • Implied

  • Apparent

Explanation

Question 7 of 14

1

A producer has each of the following responsibilities to the Insurer, EXCEPT:

Select one of the following:

  • A fiduciary duty

  • Forwarding premiums to the insurer on a timely basis

  • Reporting material facts that may affect underwriting

  • A duty to recommend only high premium policies

Explanation

Question 8 of 14

1

A federal regulation called the ________________ protects consumer privacy.

Select one of the following:

  • Consolidated Omnibus Budget Reconciliation Act

  • Fraudulent Insurance Act

  • Privacy Protection Act

  • Fair Credit Reporting Act

Explanation

Question 9 of 14

1

Dishonest tendencies that increase the probability of loss are what types of hazard?

Select one of the following:

  • Physical

  • Moral

  • Emotional

  • Legal

Explanation

Question 10 of 14

1

Each of the following must be included in an insurable risk, EXCEPT:

Select one of the following:

  • Calculable chance of loss

  • Excluded catastrophic perils

  • Large group with dissimilar members

  • Accidental losses

Explanation

Question 11 of 14

1

Which principle of insurance restores the insured to the same economic condition that existed before the loss?

Select one of the following:

  • Indemnity

  • Insurability

  • Adhesion

  • Underwriting

Explanation

Question 12 of 14

1

Each of the following is an element of a legal contract, EXCEPT:

Select one of the following:

  • Consideration

  • Legal Purpose

  • Agreement

  • Indemnity

Explanation

Question 13 of 14

1

A warranty is defined as which of the following?

Select one of the following:

  • Intentional misrepresentation on the application

  • Statement in the application that is guaranteed to be true

  • A false statement in the application

  • What a reasonable and prudent buyer can expect

Explanation

Question 14 of 14

1

Each of the following is a factor considered by an underwriter, EXCEPT:

Select one of the following:

  • Age

  • Marital status

  • Gender

  • Hazardous occupation

Explanation

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