Limited Lines Exam (Insurance) UPDATED ACTUAL
Questions and CORRECT Answers
Insurer Insurance company providing the policies
Insured Person who buys the insurance
Agency Independent organizations that hire/support sales agents
Agent/Producer Licensed individuals who represent the insurance company
Stock (Insurance company) Ins. Company owned by stockholders
Mutual (Insurance company) Ins. Company owned by policyholder (members)
Independent Agent Sells insurance from more than one carrier
Captive Agent Sells insurance for only one carrier
Certificate of Authority Certificate issued by Commissioner allowing companies to sell insurance in there
state
Admitted (authorized) insurers Insurers who are authorized by Commissioner to do business in the state
Non-Admitted (unauthorized) insurers Insurers who are not authorized to do business in the state
Surplus (Excess) Lines Insurance Provides coverage when the kind/amount of insurance is not available
Domestic Insurer Insurer's headquarters (HQ) in the state where business is done
Foreign Insurer Insurer's headquarters (HQ) is in a different state from where business is done
Alien Insurer Insurer's HQ is outside the of U.S
Insurance Transfer of risk. Insurance company takes by paying your losses
Indemnity Restore insured the same financial condition before a loss
Risk Unknown/uncertainty of loss
Questions and CORRECT Answers
Insurer Insurance company providing the policies
Insured Person who buys the insurance
Agency Independent organizations that hire/support sales agents
Agent/Producer Licensed individuals who represent the insurance company
Stock (Insurance company) Ins. Company owned by stockholders
Mutual (Insurance company) Ins. Company owned by policyholder (members)
Independent Agent Sells insurance from more than one carrier
Captive Agent Sells insurance for only one carrier
Certificate of Authority Certificate issued by Commissioner allowing companies to sell insurance in there
state
Admitted (authorized) insurers Insurers who are authorized by Commissioner to do business in the state
Non-Admitted (unauthorized) insurers Insurers who are not authorized to do business in the state
Surplus (Excess) Lines Insurance Provides coverage when the kind/amount of insurance is not available
Domestic Insurer Insurer's headquarters (HQ) in the state where business is done
Foreign Insurer Insurer's headquarters (HQ) is in a different state from where business is done
Alien Insurer Insurer's HQ is outside the of U.S
Insurance Transfer of risk. Insurance company takes by paying your losses
Indemnity Restore insured the same financial condition before a loss
Risk Unknown/uncertainty of loss
