Crop Insurance Quiz Complete Study Guide
2026/2027 Study Guide | Authentic Practice
Questions and Expert Solutions (Already Passed
A+)
• Reinsurance -✓✓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?
• Domestic Insurer -✓✓An insurer organized under the laws of this state,
whether or not it is admitted to do business in this state.
• Foreign Insurer -✓✓An insurer not organized under the laws of this
state, but in one of the other states or jurisdictions within the United
States, whether or not it is admitted to do business in the state or
jurisdiction.
• Alien Insurer -✓✓An insurer organized under the laws of any
jurisdiction outside of the United States, whether or not it is admitted to
do business in this state.
• Underwriting -✓✓Which insurance company department accepts the
insurance risk?
• Producer -✓✓Which of the following individuals represents the
insurance company when selling an insurance policy?
• Express Authority -✓✓Authority that is written into the producer's
contract. Example: producer's binding authority if written in the contract
• Implied Authority -✓✓Authority the public assumes the producer has.
Example: providing quotes, completing applications and accepting
premiums on behalf of the insurer.
, • Apparent Authority -✓✓Authority created when the producer exceeds
the authority expressed in the agency contract. Example: the producer's
issuance of a binder when, in fact, the producer has not been granted
such authority.
• Moral Hazard -✓✓Type of Hazard -dishonest tendencies that increase
the probability of a loss; certain characteristics and behaviors of people.
Most closely related to some form of lying, cheating, or stealing.
• Morale Hazard -✓✓An attitude of indifference toward the risk of loss
that increases the probability of of a loss occurring. i.e driving too fast
for conditions, not wearing a seatbelt.
• Large group with dissimilar members -✓✓Each of the following must
be included in an insurable risk, except:
1) Calculable chance of loss
2)Excluded catastrophic perils
3)Large group of dissimilar members
4)Accidental losses
• Indemnity -✓✓Which principle of insurance restores the insured to the
same economic condition that existed before the loss?
1) Indemnity
2) Insurability
3) Adhesion
4) Underwriting
• Indemnity -✓✓Each of the following is an element of a legal contract,
except:
1) Consideration
2) Legal Purpose
3) Agreement
4) Indemnity
2026/2027 Study Guide | Authentic Practice
Questions and Expert Solutions (Already Passed
A+)
• Reinsurance -✓✓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?
• Domestic Insurer -✓✓An insurer organized under the laws of this state,
whether or not it is admitted to do business in this state.
• Foreign Insurer -✓✓An insurer not organized under the laws of this
state, but in one of the other states or jurisdictions within the United
States, whether or not it is admitted to do business in the state or
jurisdiction.
• Alien Insurer -✓✓An insurer organized under the laws of any
jurisdiction outside of the United States, whether or not it is admitted to
do business in this state.
• Underwriting -✓✓Which insurance company department accepts the
insurance risk?
• Producer -✓✓Which of the following individuals represents the
insurance company when selling an insurance policy?
• Express Authority -✓✓Authority that is written into the producer's
contract. Example: producer's binding authority if written in the contract
• Implied Authority -✓✓Authority the public assumes the producer has.
Example: providing quotes, completing applications and accepting
premiums on behalf of the insurer.
, • Apparent Authority -✓✓Authority created when the producer exceeds
the authority expressed in the agency contract. Example: the producer's
issuance of a binder when, in fact, the producer has not been granted
such authority.
• Moral Hazard -✓✓Type of Hazard -dishonest tendencies that increase
the probability of a loss; certain characteristics and behaviors of people.
Most closely related to some form of lying, cheating, or stealing.
• Morale Hazard -✓✓An attitude of indifference toward the risk of loss
that increases the probability of of a loss occurring. i.e driving too fast
for conditions, not wearing a seatbelt.
• Large group with dissimilar members -✓✓Each of the following must
be included in an insurable risk, except:
1) Calculable chance of loss
2)Excluded catastrophic perils
3)Large group of dissimilar members
4)Accidental losses
• Indemnity -✓✓Which principle of insurance restores the insured to the
same economic condition that existed before the loss?
1) Indemnity
2) Insurability
3) Adhesion
4) Underwriting
• Indemnity -✓✓Each of the following is an element of a legal contract,
except:
1) Consideration
2) Legal Purpose
3) Agreement
4) Indemnity
