2-20 INSURANCE LICENSE EXAM QUESTIONS
AND CORRECT ANSWERS 2024 - 2025
actual,authority,,,ANS,-anything,a,principal,authorizes,the,agent,to,do
aleatory,contract,,,ANS,-contract,in,which,the,amounts,exchanged,are,not,equal
conformity,to,statute,,,ANS,-
a,policy,provision,that,says,the,policy,follows,a,state's,law,if,the,law,and,policy,language,are,in,conflict
contract,of,adhesion,,,ANS,-
contract,drawn,by,one,party,and,offered,to,another,on,a,"take,it,or,leave,it",basis
direct,writer,agent,,,ANS,-
an,agent,that,is,an,employee,of,an,insurer,,rather,than,as,an,independent,holding,contracts,with,an,insur
er
duty,of,accounting,,,ANS,-the,agent,must,account,for,any,money,entrusted,to,him,by,the,principal
duty,of,loyalty,,,ANS,-owed,by,an,agent,to,the,principal-
,the,agent,must,not,do,anything,to,harm,the,principal
duty,of,obedience,,,ANS,-the,agent,must,obey,all,lawful,instructions,from,the,principal
duty,of,reasonable,care,,,ANS,-
the,agent,must,exercise,the,same,degree,of,care,as,a,reasonable,and,prudent,person
duty,to,give,information,,,ANS,-
the,agent,must,keep,the,principal,informed,about,any,factors,that,affect,the,principal-agent,relationship
,exclusive,agent,,,ANS,-
an,agent,that,has,a,contract,with,only,one,insurer.,may,or,may,not,be,an,employee,of,the,insurance,com
pany,he,represents.
FAIR,plan,,,ANS,-a,government,program,that,offers,property,and,crime,insurance,in,the,inner,cities
fraternal,insurers,,,ANS,-offer,coverage,only,to,members,of,a,particular,group
hazard,,,ANS,-increases,the,chance,of,loss,from,a,peril
indemnify,,,ANS,-to,make,whole,again,financially
independent,adjuster,,,ANS,-an,adjuster,who,works,for,several,companies,on,a,contract,basis
independent,agent,,,ANS,-an,agent,that,has,contracts,with,several,insurers.,"Owns,the,expirations"
Inland,Marine,,,ANS,-
traditionally,provides,protection,for,property,in,transit,over,land,,and,today,,to,collections,,personal,prop
erty,,and,other,coverage,for,movable,property
insurable,interest,,,ANS,-
the,potential,for,financial,loss,associated,with,damage,or,destruction,of,property
insurance,policy,,,ANS,-the,indemnity,contract,between,an,insured,and,insurer
marine,insurance,,,ANS,-insurance,that,covers,property,that,is,in,some,way,related,to,transportation
moral,hazard,,,ANS,-arises,out,of,the,dishonesty,of,an,insured.,Burning,down,your,own,house
morale,hazard,,,ANS,-arises,out,of,the,indifference,to,loss,because,of,insurance,coverage
, ocean,marine,,,ANS,-provides,protection,for,waterborne,property
peril,,,ANS,-potential,cause,for,loss
premium,,,ANS,-consideration,paid,by,the,insured,in,exchange,for,the,insurer's,promise,to,indemnify
reciprocal,insurers,,,ANS,-a,group,of,individuals,or,firms,who,combine,to,pay,each,other's,losses
social,insurance,,,ANS,-
a,minimal,level,of,protection,provided,by,the,government.,participation,is,mandatory
workers,comp,3a,,,ANS,-known,locations
workers,comp,3c,,,ANS,-other,locations
employers,liability,basic,policy,limits,,,ANS,-bodily,injury,by,accident-,100k
bodily,injury,by,disease-,500k,policy,limit
bodilty,injury,by,disease-,100k,per,employee
USL&H,,,ANS,-
provides,workers,comp,benefits,to,employees,,other,than,seamen,who,work,in,maritime,employment,an
d,on,navigable,waters
defense,base,act,,,ANS,-
extends,the,USL&H,to,employees,of,American,contractors,performing,public,works,outside,the,US.
jones,act,,,ANS,-entitles,a,seamen,and,his,beneficiaries,to,sue,his,employer,for,negligence.
Coverage,A:,General,liability,,,ANS,-Bodily,injury,and,property,damage
AND CORRECT ANSWERS 2024 - 2025
actual,authority,,,ANS,-anything,a,principal,authorizes,the,agent,to,do
aleatory,contract,,,ANS,-contract,in,which,the,amounts,exchanged,are,not,equal
conformity,to,statute,,,ANS,-
a,policy,provision,that,says,the,policy,follows,a,state's,law,if,the,law,and,policy,language,are,in,conflict
contract,of,adhesion,,,ANS,-
contract,drawn,by,one,party,and,offered,to,another,on,a,"take,it,or,leave,it",basis
direct,writer,agent,,,ANS,-
an,agent,that,is,an,employee,of,an,insurer,,rather,than,as,an,independent,holding,contracts,with,an,insur
er
duty,of,accounting,,,ANS,-the,agent,must,account,for,any,money,entrusted,to,him,by,the,principal
duty,of,loyalty,,,ANS,-owed,by,an,agent,to,the,principal-
,the,agent,must,not,do,anything,to,harm,the,principal
duty,of,obedience,,,ANS,-the,agent,must,obey,all,lawful,instructions,from,the,principal
duty,of,reasonable,care,,,ANS,-
the,agent,must,exercise,the,same,degree,of,care,as,a,reasonable,and,prudent,person
duty,to,give,information,,,ANS,-
the,agent,must,keep,the,principal,informed,about,any,factors,that,affect,the,principal-agent,relationship
,exclusive,agent,,,ANS,-
an,agent,that,has,a,contract,with,only,one,insurer.,may,or,may,not,be,an,employee,of,the,insurance,com
pany,he,represents.
FAIR,plan,,,ANS,-a,government,program,that,offers,property,and,crime,insurance,in,the,inner,cities
fraternal,insurers,,,ANS,-offer,coverage,only,to,members,of,a,particular,group
hazard,,,ANS,-increases,the,chance,of,loss,from,a,peril
indemnify,,,ANS,-to,make,whole,again,financially
independent,adjuster,,,ANS,-an,adjuster,who,works,for,several,companies,on,a,contract,basis
independent,agent,,,ANS,-an,agent,that,has,contracts,with,several,insurers.,"Owns,the,expirations"
Inland,Marine,,,ANS,-
traditionally,provides,protection,for,property,in,transit,over,land,,and,today,,to,collections,,personal,prop
erty,,and,other,coverage,for,movable,property
insurable,interest,,,ANS,-
the,potential,for,financial,loss,associated,with,damage,or,destruction,of,property
insurance,policy,,,ANS,-the,indemnity,contract,between,an,insured,and,insurer
marine,insurance,,,ANS,-insurance,that,covers,property,that,is,in,some,way,related,to,transportation
moral,hazard,,,ANS,-arises,out,of,the,dishonesty,of,an,insured.,Burning,down,your,own,house
morale,hazard,,,ANS,-arises,out,of,the,indifference,to,loss,because,of,insurance,coverage
, ocean,marine,,,ANS,-provides,protection,for,waterborne,property
peril,,,ANS,-potential,cause,for,loss
premium,,,ANS,-consideration,paid,by,the,insured,in,exchange,for,the,insurer's,promise,to,indemnify
reciprocal,insurers,,,ANS,-a,group,of,individuals,or,firms,who,combine,to,pay,each,other's,losses
social,insurance,,,ANS,-
a,minimal,level,of,protection,provided,by,the,government.,participation,is,mandatory
workers,comp,3a,,,ANS,-known,locations
workers,comp,3c,,,ANS,-other,locations
employers,liability,basic,policy,limits,,,ANS,-bodily,injury,by,accident-,100k
bodily,injury,by,disease-,500k,policy,limit
bodilty,injury,by,disease-,100k,per,employee
USL&H,,,ANS,-
provides,workers,comp,benefits,to,employees,,other,than,seamen,who,work,in,maritime,employment,an
d,on,navigable,waters
defense,base,act,,,ANS,-
extends,the,USL&H,to,employees,of,American,contractors,performing,public,works,outside,the,US.
jones,act,,,ANS,-entitles,a,seamen,and,his,beneficiaries,to,sue,his,employer,for,negligence.
Coverage,A:,General,liability,,,ANS,-Bodily,injury,and,property,damage
