XCEL CHAPTER 3 EXAM QUESTIONS AND VERIFIED CORRECT
ANSWERS GRADED A+
Ambiguities in an insurance policy are always resolved in favor of the
insured
The authority granted to a licensed producer is provided via the
law of agency
______ is NOT an element of a valid contract.
countersignature
Insurable interest does NOT occur in which of the following relationships?
business ower and business client
What is implied authority defined as?
Authority that is not specifically given to an agent in the agency contract, but that an
agent can reasonably assume to carry out his/her duties
The power given to an individual producer that is not specifically addressed in
his/her contract is considered what type of authority?
implied
In an insurance contract, the insurer is the only party legally obligated to perform.
Because of this, an insurance contract is considered
unilateral
All of the following are elements of an insurance policy EXCEPT
claim forms
ANSWERS GRADED A+
Ambiguities in an insurance policy are always resolved in favor of the
insured
The authority granted to a licensed producer is provided via the
law of agency
______ is NOT an element of a valid contract.
countersignature
Insurable interest does NOT occur in which of the following relationships?
business ower and business client
What is implied authority defined as?
Authority that is not specifically given to an agent in the agency contract, but that an
agent can reasonably assume to carry out his/her duties
The power given to an individual producer that is not specifically addressed in
his/her contract is considered what type of authority?
implied
In an insurance contract, the insurer is the only party legally obligated to perform.
Because of this, an insurance contract is considered
unilateral
All of the following are elements of an insurance policy EXCEPT
claim forms
