2-20 Insurance License Exam questions
|\ |\ |\ |\ |\
with answers |\
actual authority - CORRECT ANSWERS ✔✔anything a
|\ |\ |\ |\ |\ |\ |\
principal authorizes the agent to do |\ |\ |\ |\ |\
aleatory contract - CORRECT ANSWERS ✔✔contract in
|\ |\ |\ |\ |\ |\ |\
which the amounts exchanged are not equal
|\ |\ |\ |\ |\ |\
conformity to statute - CORRECT ANSWERS ✔✔a policy |\ |\ |\ |\ |\ |\ |\ |\
provision that says the policy follows a state's law if the
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
law and policy language are in conflict
|\ |\ |\ |\ |\ |\
contract of adhesion - CORRECT ANSWERS ✔✔contract
|\ |\ |\ |\ |\ |\ |\
drawn by one party and offered to another on a "take it or
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
leave it" basis
|\ |\ |\
direct writer agent - CORRECT ANSWERS ✔✔an agent that
|\ |\ |\ |\ |\ |\ |\ |\
is an employee of an insurer, rather than as an
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
independent holding contracts with an insurer |\ |\ |\ |\ |\
duty of accounting - CORRECT ANSWERS ✔✔the agent
|\ |\ |\ |\ |\ |\ |\ |\
must account for any money entrusted to him by the
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
principal
,duty of loyalty - CORRECT ANSWERS ✔✔owed by an
|\ |\ |\ |\ |\ |\ |\ |\ |\
agent to the principal- the agent must not do anything to
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
harm the principal |\ |\
duty of obedience - CORRECT ANSWERS ✔✔the agent
|\ |\ |\ |\ |\ |\ |\ |\
must obey all lawful instructions from the principal
|\ |\ |\ |\ |\ |\ |\
duty of reasonable care - CORRECT ANSWERS ✔✔the
|\ |\ |\ |\ |\ |\ |\ |\
agent must exercise the same degree of care as a
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
reasonable and prudent person |\ |\ |\
duty to give information - CORRECT ANSWERS ✔✔the
|\ |\ |\ |\ |\ |\ |\ |\
agent must keep the principal informed about any factors
|\ |\ |\ |\ |\ |\ |\ |\
that affect the principal-agent relationship
|\ |\ |\ |\ |\
exclusive agent - CORRECT ANSWERS ✔✔an agent that
|\ |\ |\ |\ |\ |\ |\ |\
has a contract with only one insurer. may or may not be
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
an employee of the insurance company he represents.
|\ |\ |\ |\ |\ |\ |\
FAIR plan - CORRECT ANSWERS ✔✔a government
|\ |\ |\ |\ |\ |\ |\
program that offers property and crime insurance in the
|\ |\ |\ |\ |\ |\ |\ |\ |\
inner cities |\
,fraternal insurers - CORRECT ANSWERS ✔✔offer coverage
|\ |\ |\ |\ |\ |\
only to members of a particular group
|\ |\ |\ |\ |\ |\ |\
hazard - CORRECT ANSWERS ✔✔increases the chance of
|\ |\ |\ |\ |\ |\ |\ |\
loss from a peril
|\ |\ |\
indemnify - CORRECT ANSWERS ✔✔to make whole again |\ |\ |\ |\ |\ |\ |\ |\
financially
independent adjuster - CORRECT ANSWERS ✔✔an |\ |\ |\ |\ |\ |\
adjuster who works for several companies on a contract
|\ |\ |\ |\ |\ |\ |\ |\ |\
basis
independent agent - CORRECT ANSWERS ✔✔an agent |\ |\ |\ |\ |\ |\ |\
that has contracts with several insurers. "Owns the
|\ |\ |\ |\ |\ |\ |\ |\
expirations"
Inland Marine - CORRECT ANSWERS ✔✔traditionally
|\ |\ |\ |\ |\ |\
provides protection for property in transit over land, and
|\ |\ |\ |\ |\ |\ |\ |\ |\
today, to collections, personal property, and other
|\ |\ |\ |\ |\ |\ |\
coverage for movable property |\ |\ |\
insurable interest - CORRECT ANSWERS ✔✔the potential
|\ |\ |\ |\ |\ |\ |\
for financial loss associated with damage or destruction
|\ |\ |\ |\ |\ |\ |\ |\
of property
|\
, insurance policy - CORRECT ANSWERS ✔✔the indemnity
|\ |\ |\ |\ |\ |\ |\
contract between an insured and insurer
|\ |\ |\ |\ |\
marine insurance - CORRECT ANSWERS ✔✔insurance that
|\ |\ |\ |\ |\ |\
covers property that is in some way related to
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
transportation
moral hazard - CORRECT ANSWERS ✔✔arises out of the
|\ |\ |\ |\ |\ |\ |\ |\ |\
dishonesty of an insured. Burning down your own house
|\ |\ |\ |\ |\ |\ |\ |\
morale hazard - CORRECT ANSWERS ✔✔arises out of the
|\ |\ |\ |\ |\ |\ |\ |\ |\
indifference to loss because of insurance coverage |\ |\ |\ |\ |\ |\
ocean marine - CORRECT ANSWERS ✔✔provides
|\ |\ |\ |\ |\ |\
protection for waterborne property |\ |\ |\
peril - CORRECT ANSWERS ✔✔potential cause for loss
|\ |\ |\ |\ |\ |\ |\
premium - CORRECT ANSWERS ✔✔consideration paid by
|\ |\ |\ |\ |\ |\ |\
the insured in exchange for the insurer's promise to
|\ |\ |\ |\ |\ |\ |\ |\ |\
indemnify
|\ |\ |\ |\ |\
with answers |\
actual authority - CORRECT ANSWERS ✔✔anything a
|\ |\ |\ |\ |\ |\ |\
principal authorizes the agent to do |\ |\ |\ |\ |\
aleatory contract - CORRECT ANSWERS ✔✔contract in
|\ |\ |\ |\ |\ |\ |\
which the amounts exchanged are not equal
|\ |\ |\ |\ |\ |\
conformity to statute - CORRECT ANSWERS ✔✔a policy |\ |\ |\ |\ |\ |\ |\ |\
provision that says the policy follows a state's law if the
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
law and policy language are in conflict
|\ |\ |\ |\ |\ |\
contract of adhesion - CORRECT ANSWERS ✔✔contract
|\ |\ |\ |\ |\ |\ |\
drawn by one party and offered to another on a "take it or
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
leave it" basis
|\ |\ |\
direct writer agent - CORRECT ANSWERS ✔✔an agent that
|\ |\ |\ |\ |\ |\ |\ |\
is an employee of an insurer, rather than as an
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
independent holding contracts with an insurer |\ |\ |\ |\ |\
duty of accounting - CORRECT ANSWERS ✔✔the agent
|\ |\ |\ |\ |\ |\ |\ |\
must account for any money entrusted to him by the
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
principal
,duty of loyalty - CORRECT ANSWERS ✔✔owed by an
|\ |\ |\ |\ |\ |\ |\ |\ |\
agent to the principal- the agent must not do anything to
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
harm the principal |\ |\
duty of obedience - CORRECT ANSWERS ✔✔the agent
|\ |\ |\ |\ |\ |\ |\ |\
must obey all lawful instructions from the principal
|\ |\ |\ |\ |\ |\ |\
duty of reasonable care - CORRECT ANSWERS ✔✔the
|\ |\ |\ |\ |\ |\ |\ |\
agent must exercise the same degree of care as a
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
reasonable and prudent person |\ |\ |\
duty to give information - CORRECT ANSWERS ✔✔the
|\ |\ |\ |\ |\ |\ |\ |\
agent must keep the principal informed about any factors
|\ |\ |\ |\ |\ |\ |\ |\
that affect the principal-agent relationship
|\ |\ |\ |\ |\
exclusive agent - CORRECT ANSWERS ✔✔an agent that
|\ |\ |\ |\ |\ |\ |\ |\
has a contract with only one insurer. may or may not be
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
an employee of the insurance company he represents.
|\ |\ |\ |\ |\ |\ |\
FAIR plan - CORRECT ANSWERS ✔✔a government
|\ |\ |\ |\ |\ |\ |\
program that offers property and crime insurance in the
|\ |\ |\ |\ |\ |\ |\ |\ |\
inner cities |\
,fraternal insurers - CORRECT ANSWERS ✔✔offer coverage
|\ |\ |\ |\ |\ |\
only to members of a particular group
|\ |\ |\ |\ |\ |\ |\
hazard - CORRECT ANSWERS ✔✔increases the chance of
|\ |\ |\ |\ |\ |\ |\ |\
loss from a peril
|\ |\ |\
indemnify - CORRECT ANSWERS ✔✔to make whole again |\ |\ |\ |\ |\ |\ |\ |\
financially
independent adjuster - CORRECT ANSWERS ✔✔an |\ |\ |\ |\ |\ |\
adjuster who works for several companies on a contract
|\ |\ |\ |\ |\ |\ |\ |\ |\
basis
independent agent - CORRECT ANSWERS ✔✔an agent |\ |\ |\ |\ |\ |\ |\
that has contracts with several insurers. "Owns the
|\ |\ |\ |\ |\ |\ |\ |\
expirations"
Inland Marine - CORRECT ANSWERS ✔✔traditionally
|\ |\ |\ |\ |\ |\
provides protection for property in transit over land, and
|\ |\ |\ |\ |\ |\ |\ |\ |\
today, to collections, personal property, and other
|\ |\ |\ |\ |\ |\ |\
coverage for movable property |\ |\ |\
insurable interest - CORRECT ANSWERS ✔✔the potential
|\ |\ |\ |\ |\ |\ |\
for financial loss associated with damage or destruction
|\ |\ |\ |\ |\ |\ |\ |\
of property
|\
, insurance policy - CORRECT ANSWERS ✔✔the indemnity
|\ |\ |\ |\ |\ |\ |\
contract between an insured and insurer
|\ |\ |\ |\ |\
marine insurance - CORRECT ANSWERS ✔✔insurance that
|\ |\ |\ |\ |\ |\
covers property that is in some way related to
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
transportation
moral hazard - CORRECT ANSWERS ✔✔arises out of the
|\ |\ |\ |\ |\ |\ |\ |\ |\
dishonesty of an insured. Burning down your own house
|\ |\ |\ |\ |\ |\ |\ |\
morale hazard - CORRECT ANSWERS ✔✔arises out of the
|\ |\ |\ |\ |\ |\ |\ |\ |\
indifference to loss because of insurance coverage |\ |\ |\ |\ |\ |\
ocean marine - CORRECT ANSWERS ✔✔provides
|\ |\ |\ |\ |\ |\
protection for waterborne property |\ |\ |\
peril - CORRECT ANSWERS ✔✔potential cause for loss
|\ |\ |\ |\ |\ |\ |\
premium - CORRECT ANSWERS ✔✔consideration paid by
|\ |\ |\ |\ |\ |\ |\
the insured in exchange for the insurer's promise to
|\ |\ |\ |\ |\ |\ |\ |\ |\
indemnify
