AAI 301 – Exam Questions And Answers
Latest 2025
What is an example of a common unfair trade practice? -
correct answer ✅An insurer's written or oral statement that does
not accurately describe an insurance policy's coverage and benefits.
Maya is an agent who has acted inconsistently with her obligations
under agency agreement with Gallagher. Depending on the
seriousness of the offense, a principal ,Gallagher, can sue an
agent ,Maya,... -
correct answer ✅For breach of agency contract
The functions that insurance producers perform vary widely from
one marketing system to another. Which function do all producers
perform? -
correct answer ✅Prospecting
Mark is an insurance agent with Gallagher. A key provision in Mark's
agency contract with Gallagher as to which party has the rights to
control a relationship with a customer is called... -
correct answer ✅Ownership of expirations
What lists the two distinct benefits of Enterprise Risk
Management? -
,AAI 301 – Exam Questions And Answers
Latest 2025
correct answer ✅Improved decision making and better
communication
Sofia has an agency agreement with Greenlaw Insurance. What
regarding termination should generally be included in Sofia's
contract with Greenlawn? -
correct answer ✅The contract should prohibit termination if
failure to meet the requirements is caused by the insurer's
underwriting practices
What is a duty an agent generally owes to a principal? -
correct answer ✅Accounting
What statement regarding agent & principal relationships in
insurance in true? -
correct answer ✅When representing an insurer, the producer is
the agent
What federal law established that insurance regulation rests with
the states, not the federal government? -
correct answer ✅McCarran-Ferguson Act
, AAI 301 – Exam Questions And Answers
Latest 2025
Authority derived from the circumstances of the situation is -
correct answer ✅Apparent Authority
Julian, an agent with Brown's Insurance, has been instructed not to
write vehicles with three wheels on a personal auto policy. Julian's
agent duty to Brown's Insurance is -
correct answer ✅Obedience
What is a duty the principal owes the agent? -
correct answer ✅Indemnity for losses
What federal law protects consumers' personal financial
information held by financial institutions? -
correct answer ✅Gramm-Leach-Bliley Act
An agent owes a duty of reasonable care to a principal... -
correct answer ✅Whether the agent is paid or not paid for
services
Tobias, an insurance agent for Greatview Insurance, has improperly
withheld premiums due to Greatview in violation of his agency
agreement. One of Greatview's remedies for breach of contract or
Latest 2025
What is an example of a common unfair trade practice? -
correct answer ✅An insurer's written or oral statement that does
not accurately describe an insurance policy's coverage and benefits.
Maya is an agent who has acted inconsistently with her obligations
under agency agreement with Gallagher. Depending on the
seriousness of the offense, a principal ,Gallagher, can sue an
agent ,Maya,... -
correct answer ✅For breach of agency contract
The functions that insurance producers perform vary widely from
one marketing system to another. Which function do all producers
perform? -
correct answer ✅Prospecting
Mark is an insurance agent with Gallagher. A key provision in Mark's
agency contract with Gallagher as to which party has the rights to
control a relationship with a customer is called... -
correct answer ✅Ownership of expirations
What lists the two distinct benefits of Enterprise Risk
Management? -
,AAI 301 – Exam Questions And Answers
Latest 2025
correct answer ✅Improved decision making and better
communication
Sofia has an agency agreement with Greenlaw Insurance. What
regarding termination should generally be included in Sofia's
contract with Greenlawn? -
correct answer ✅The contract should prohibit termination if
failure to meet the requirements is caused by the insurer's
underwriting practices
What is a duty an agent generally owes to a principal? -
correct answer ✅Accounting
What statement regarding agent & principal relationships in
insurance in true? -
correct answer ✅When representing an insurer, the producer is
the agent
What federal law established that insurance regulation rests with
the states, not the federal government? -
correct answer ✅McCarran-Ferguson Act
, AAI 301 – Exam Questions And Answers
Latest 2025
Authority derived from the circumstances of the situation is -
correct answer ✅Apparent Authority
Julian, an agent with Brown's Insurance, has been instructed not to
write vehicles with three wheels on a personal auto policy. Julian's
agent duty to Brown's Insurance is -
correct answer ✅Obedience
What is a duty the principal owes the agent? -
correct answer ✅Indemnity for losses
What federal law protects consumers' personal financial
information held by financial institutions? -
correct answer ✅Gramm-Leach-Bliley Act
An agent owes a duty of reasonable care to a principal... -
correct answer ✅Whether the agent is paid or not paid for
services
Tobias, an insurance agent for Greatview Insurance, has improperly
withheld premiums due to Greatview in violation of his agency
agreement. One of Greatview's remedies for breach of contract or
