Unit 1 Checkpoint Exam Questions and Answers (Latest Update
2023-2024) RATED A+
A fiduciary is
A) another name for commingling
B) a beneficiary
C) an accounts for funds
D) a person in a position of financial trust - Correct Answer ✅D
At the state level, the government is involved in providing
A) war risk insurance
B) unemployment insurance
C) flood insurance
D) federal crop insurance - Correct Answer ✅B
In an insurance contract, the second party is
A) the insurer
B) the insured
C) the beneficiary
D) the underwriter - Correct Answer ✅A
ABC Insurance is incorporated in Wisconsin, but is doing business in Florida. While
in Florida, ABC Insurance is classified as
A) a domestic insurer
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, B) a nonresident insurer
C) an alien insurer
D) a foreign insurer - Correct Answer ✅D
All of the following statements regarding surplus lines insurers are correct EXCEPT
A) surplus lines insurance covers high-risk exposures
B) surplus lines insurance is placed with an admitted carrier by a surplus lines
agent
C) states keep a list of acceptable surplus lines insurers
D) surplus lines insurance is placed with a nonadmitted carrier by a surplus lines
agent - Correct Answer ✅B
ABC Insurance is licensed to sell insurance in Wisconsin. When a company is
licensed in a state, it is considered
A) approved
B) unauthorized
C) admitted
D) nonadmitted - Correct Answer ✅C
Josephine sells insurance for one company and is an independent contractor, NOT
an employee of the insurer. She is
A) a captive agent
B) a general agent
C) a direct writing agent
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2023-2024) RATED A+
A fiduciary is
A) another name for commingling
B) a beneficiary
C) an accounts for funds
D) a person in a position of financial trust - Correct Answer ✅D
At the state level, the government is involved in providing
A) war risk insurance
B) unemployment insurance
C) flood insurance
D) federal crop insurance - Correct Answer ✅B
In an insurance contract, the second party is
A) the insurer
B) the insured
C) the beneficiary
D) the underwriter - Correct Answer ✅A
ABC Insurance is incorporated in Wisconsin, but is doing business in Florida. While
in Florida, ABC Insurance is classified as
A) a domestic insurer
Page 1 of 6
, B) a nonresident insurer
C) an alien insurer
D) a foreign insurer - Correct Answer ✅D
All of the following statements regarding surplus lines insurers are correct EXCEPT
A) surplus lines insurance covers high-risk exposures
B) surplus lines insurance is placed with an admitted carrier by a surplus lines
agent
C) states keep a list of acceptable surplus lines insurers
D) surplus lines insurance is placed with a nonadmitted carrier by a surplus lines
agent - Correct Answer ✅B
ABC Insurance is licensed to sell insurance in Wisconsin. When a company is
licensed in a state, it is considered
A) approved
B) unauthorized
C) admitted
D) nonadmitted - Correct Answer ✅C
Josephine sells insurance for one company and is an independent contractor, NOT
an employee of the insurer. She is
A) a captive agent
B) a general agent
C) a direct writing agent
Page 2 of 6
