Study Guide for NJ Title Insurance Exam (questions and answers)

Study Guide for NJ Title Insurance Exam (questions and answers) An insurance agent is defined as an individual who transacts business on behalf of a _______ - CORRECT ANSWER-a client Knowingly making false statements which are derogatory against and meant solely to injure another - CORRECT ANSWER-defamation Type of authority that is either stated orally or in writing and allows an agent to act on behalf of the insurance company - CORRECT ANSWER-express authority Type of authority holds an agent has when any reasonable person assumes the agent has - CORRECT ANSWER-apparent authority The chance or uncertainty of loss - CORRECT ANSWER-risk Conditions and ground rules for a policy specify - CORRECT ANSWER-obligations and responsibilities for the insurer and the insured The insuring agreement of a property insurance policy includes - CORRECT ANSWERpromise made by the insurance company to the insured to provide coverage Insurable Interest means - CORRECT ANSWER-type of investment that protects anything subject to a financial loss A loss for which there is no protection under insurance policy terms - CORRECT ANSWER-exclusion Modified Whole Life Policies - CORRECT ANSWER-The premium is lower than normal during the early years and increases to a fixed premium after a 3-5 year period In which of the DP Forms is the dwelling covered under open perils and the personal property on a named peril basis - CORRECT ANSWER-DP - 3 In a level term life policy, _______ always remains constant - CORRECT ANSWERdeath benefit This is excluded on DP - 3 coverage - CORRECT ANSWER-Ice damage to homes Dwelling Property Policy's cover - CORRECT ANSWER-mountain vacation homes used on weekends and summers