2-20 INSURANCE LICENSE EXAM
QUESTIONS & ACCURATE PASSED
ANSWERS RATED 100% CORRECT
anything a principal authorizes the agent to do - Correct Answer ✔✔ actual authority
contract in which the amounts exchanged are not equal - Correct Answer ✔✔ aleatory
contract
a policy provision that says the policy follows a state's law if the law and policy language
are in conflict - Correct Answer ✔✔ conformity to statute
contract drawn by one party and offered to another on a "take it or leave it" basis -
Correct Answer ✔✔ contract of adhesion
an agent that is an employee of an insurer, rather than as an independent holding
contracts with an insurer - Correct Answer ✔✔ direct writer agent
the agent must account for any money entrusted to him by the principal - Correct
Answer ✔✔ duty of accounting
owed by an agent to the principal- the agent must not do anything to harm the principal -
Correct Answer ✔✔ duty of loyalty
the agent must obey all lawful instructions from the principal - Correct Answer ✔✔ duty
of obedience
the agent must exercise the same degree of care as a reasonable and prudent person -
Correct Answer ✔✔ duty of reasonable care
the agent must keep the principal informed about any factors that affect the principal-
agent relationship - Correct Answer ✔✔ duty to give information
an agent that has a contract with only one insurer. may or may not be an employee of
the insurance company he represents. - Correct Answer ✔✔ exclusive agent
a government program that offers property and crime insurance in the inner cities -
Correct Answer ✔✔ FAIR plan
offer coverage only to members of a particular group - Correct Answer ✔✔ fraternal
insurers
, increases the chance of loss from a peril - Correct Answer ✔✔ hazard
to make whole again financially - Correct Answer ✔✔ indemnify
an adjuster who works for several companies on a contract basis - Correct Answer ✔✔
independent adjuster
an agent that has contracts with several insurers. "Owns the expirations" - Correct
Answer ✔✔ independent agent
traditionally provides protection for property in transit over land, and today, to
collections, personal property, and other coverage for movable property - Correct
Answer ✔✔ Inland Marine
the potential for financial loss associated with damage or destruction of property -
Correct Answer ✔✔ insurable interest
the indemnity contract between an insured and insurer - Correct Answer ✔✔ insurance
policy
insurance that covers property that is in some way related to transportation - Correct
Answer ✔✔ marine insurance
arises out of the dishonesty of an insured. Burning down your own house - Correct
Answer ✔✔ moral hazard
arises out of the indifference to loss because of insurance coverage - Correct Answer
✔✔ morale hazard
provides protection for waterborne property - Correct Answer ✔✔ ocean marine
potential cause for loss - Correct Answer ✔✔ peril
consideration paid by the insured in exchange for the insurer's promise to indemnify -
Correct Answer ✔✔ premium
a group of individuals or firms who combine to pay each other's losses - Correct Answer
✔✔ reciprocal insurers
a minimal level of protection provided by the government. participation is mandatory -
Correct Answer ✔✔ social insurance
known locations - Correct Answer ✔✔ workers comp 3a
other locations - Correct Answer ✔✔ workers comp 3c
QUESTIONS & ACCURATE PASSED
ANSWERS RATED 100% CORRECT
anything a principal authorizes the agent to do - Correct Answer ✔✔ actual authority
contract in which the amounts exchanged are not equal - Correct Answer ✔✔ aleatory
contract
a policy provision that says the policy follows a state's law if the law and policy language
are in conflict - Correct Answer ✔✔ conformity to statute
contract drawn by one party and offered to another on a "take it or leave it" basis -
Correct Answer ✔✔ contract of adhesion
an agent that is an employee of an insurer, rather than as an independent holding
contracts with an insurer - Correct Answer ✔✔ direct writer agent
the agent must account for any money entrusted to him by the principal - Correct
Answer ✔✔ duty of accounting
owed by an agent to the principal- the agent must not do anything to harm the principal -
Correct Answer ✔✔ duty of loyalty
the agent must obey all lawful instructions from the principal - Correct Answer ✔✔ duty
of obedience
the agent must exercise the same degree of care as a reasonable and prudent person -
Correct Answer ✔✔ duty of reasonable care
the agent must keep the principal informed about any factors that affect the principal-
agent relationship - Correct Answer ✔✔ duty to give information
an agent that has a contract with only one insurer. may or may not be an employee of
the insurance company he represents. - Correct Answer ✔✔ exclusive agent
a government program that offers property and crime insurance in the inner cities -
Correct Answer ✔✔ FAIR plan
offer coverage only to members of a particular group - Correct Answer ✔✔ fraternal
insurers
, increases the chance of loss from a peril - Correct Answer ✔✔ hazard
to make whole again financially - Correct Answer ✔✔ indemnify
an adjuster who works for several companies on a contract basis - Correct Answer ✔✔
independent adjuster
an agent that has contracts with several insurers. "Owns the expirations" - Correct
Answer ✔✔ independent agent
traditionally provides protection for property in transit over land, and today, to
collections, personal property, and other coverage for movable property - Correct
Answer ✔✔ Inland Marine
the potential for financial loss associated with damage or destruction of property -
Correct Answer ✔✔ insurable interest
the indemnity contract between an insured and insurer - Correct Answer ✔✔ insurance
policy
insurance that covers property that is in some way related to transportation - Correct
Answer ✔✔ marine insurance
arises out of the dishonesty of an insured. Burning down your own house - Correct
Answer ✔✔ moral hazard
arises out of the indifference to loss because of insurance coverage - Correct Answer
✔✔ morale hazard
provides protection for waterborne property - Correct Answer ✔✔ ocean marine
potential cause for loss - Correct Answer ✔✔ peril
consideration paid by the insured in exchange for the insurer's promise to indemnify -
Correct Answer ✔✔ premium
a group of individuals or firms who combine to pay each other's losses - Correct Answer
✔✔ reciprocal insurers
a minimal level of protection provided by the government. participation is mandatory -
Correct Answer ✔✔ social insurance
known locations - Correct Answer ✔✔ workers comp 3a
other locations - Correct Answer ✔✔ workers comp 3c
