Massachusetts Insurance Agent License Exam 2024 Questions And Answers With Verified Solutions Graded A+

Massachusetts Insurance Agent License Exam 2024 Elements of a legal contract - Answer -1. Agreement 2. Consideration 3. Competent Parties 4. Legal Purpose Fraud - Answer -Deliberately deceiving. Actual Cash Value (ACV) - Answer -Replacement cost minus Depreciation. Can be determined by age and quality. Adhesion - Answer -Drafted by insurer, accepted by applicant. Aleatory - Answer -Unequal payment or consideration. Appraisal - Answer -When insurer and insured to not agree on the amount of a loss. Automatic Reinsurance (Treaty Agreement) - Answer -When the reinsurer agrees in advance. Binder - Answer -Interim Contract. Does not include an offer or a quote. Not good for more than 30 days. Commonly Named Perils - Answer -Fire, Lightening, Hail, Aircraft Damage, Riot, Vehicle Damage, Explosions, Smoke, Theft, Vandalism. Concealment - Answer -Failure to disclose. Conditional - Answer -Specific expectations must be met in order for the contract to be executed. Conditions - Answer -Responsibilities of the agreement. Declaration - Answer -Personalizes the policy. Direct vs Indirect Loss - Answer -Direct involves physical loss to property. Indirect is a result of the direct loss. Act of Terrorism - Answer -1. Must be a violent act dangerous to human life, property, or infrastructure. 2. Damage within the US. 3. Committed by someone acting on behalf of foreign interest. 4. Produced P&C losses of 100 million or more. Estoppel - Answer -A false statement made by one party, which is relied on by another. Exclusions - Answer -Perils not covered in the agreement. Facultative Reinsurance - Answer -May either accept or reject based on case by case basis. Fair Credit Reporting Act of 1970 - Answer -Permits insurer to conduct investigative reports and allows the applicant to receive a copy of the information. Hazard - Answer -Increases possibility of loss. Insurance - Answer -Transfer of risk Insuring Provision - Answer -Summary of the agreement. Law of Large Numbers - Answer -Insurers try to spread the risk. Material Misrepresentation - Answer -An untrue statement that would cause rejection. Moral vs. Morale Hazards - Answer -Moral is an increase due to dishonest character. It causes intentions damage. Morale results from indifference or careless attitudes.