4/5/25, 6:40 CT LICENSING |
PM
CT LICENSING EXAM QUESTIONS AND ANSWERS WITH
COMPLETE SOLUTIONS VERIFIED LATEST UPDATE
Practice questions for this set
Learn 1/7 Study using Learn
Sell insurance, collect premiums, service the contract, issue and countersign policies,
agents act as the representatives for the insurance company
Select the correct term
1Residential property condition disclosure
2Pure risk
3Special damages 4Agent's responsibility
Don't know?
Terms in this set (102)
Competent parties; both parties must be mentally competent
Legal purpose: the contract must be for something is legal in nature and not
against public policy, state or federal law, or in violation of the constitution
Define C.L.O.C. Offer & acceptance: the contract involves 2 parties: 1 who makes & offers and 1
who accepts it.
Consideration: the thing of value exchanged for the performance promised in the
contract
Sell insurance, collect premiums, service the contract, issue and countersign
Agent's responsibility
policies, agents act as the representatives for the insurance company
one who solicits, negotiates or effects contracts of insurance on behalf of an
Agent/producer
insurer.
insurance agents are granted powers by the insurance company to bind or accept
Law of agency
risks on behalf of the insurer.
authority that is distinctly, plainly expressed or implied or in writing.
Implied authority: authority granted to an agent, even though not stated, that lets
Expressed authority
the agent perform tasks usual and necessary to exercise the agent's express
authority
this is a doctrine that assumes that the agent has the authority that a normal
Apparent authority
prudent person would think or be led to believe they have.
an insurance contract is aleatory, which means that it is contingent on an uncertain
Aleatory event (a loss). Premiums are always paid but if there is no loss, the company
does not make a payment under the policy
insurance contracts are contracts of adhesion which means that one party has
Adhesion
greater power over the other in drafting the contract.
1/
5
, 4/5/25, 6:40 CT LICENSING |
PM
an insurance policy is a unilateral contract. Only the insurance company is
Unilateral
legally bound to perform its part of the agreement.
Executory both sides must perform certain acts to make the contract legally enforceable
Conditional an insurance policy has a number of conditions that both parties must abide by
Each party must disclose all material information and facts and bargain in good
Utmost good faith
faith
insurance does not cover the property itself, it insures the person who has
Personal aspect insurable interest in the property. For instance, with the sale of a vehicle, the
insurance policy does not pass to the new owner
the contract must restore the injured party to the financial position previously
Principle of indemnity
held before the loss.
Statements made on the application for insurance that the applicant believes to
Representations
be true and to the best of his/her knowledge
written or verbal untrue statements made by the insured, usually at the time when
Misrepresentations: an application is made, that had the insurer known the truth they would not have
written the policy or would have classified the risk differently.
the withholding of a material fact. The failure of the insured to reveal relevant
Concealment
facts known to the insured when applying for an insurance policy.
means a person related to you by blood, marriage or adoption who is a resident
Family member
of your household
Occupying means in, upon, getting in, on or out of
An intentional act designed to deceive another party to part with something of
Fraud
value.
something that becomes part of the contract and is a statement that is
Warranty
considered to be a guarantee 100% of the time.
Acquired autos
Listed auto
DEFINE A.L.O.T
Owned trailers
Temporary subtitute autos
if an insurance professional intentionally or unintentionally creates the impression
Estoppel that a certain fact exists when it doesn't, and an innocent party relies on that
impression and is damaged as a result.
Physical hazard any hazard arising from the material, structural or an operational condition
An increase in the chance of a loss either through carelessness, poor attitude, or
Morale Hazard
irresponsibility of the insured
Loss is an unintentional decline or disappearance in property value
Direct loss the physical loss resulting directly from a peril
Pure Risk the chance of loss without no chance of gain
Speculative risk the chance of loss or the chance of gain
Control: does not stop a loss from happening but can control the severity of the
damage
Avoid: not participating in risk related activity
DEFINE CARTS
Retain when you pay for a loss or part of the loss out of pocket
Transfer: situation where one party assumes the risk of another
Sharing: common method of risk management by members of insurance pools
Specific basis provides coverage primarily for one kind of property, in one definite location.
Blanket basis covers, by a single amount of the same kind of property in different locations
2/
5
PM
CT LICENSING EXAM QUESTIONS AND ANSWERS WITH
COMPLETE SOLUTIONS VERIFIED LATEST UPDATE
Practice questions for this set
Learn 1/7 Study using Learn
Sell insurance, collect premiums, service the contract, issue and countersign policies,
agents act as the representatives for the insurance company
Select the correct term
1Residential property condition disclosure
2Pure risk
3Special damages 4Agent's responsibility
Don't know?
Terms in this set (102)
Competent parties; both parties must be mentally competent
Legal purpose: the contract must be for something is legal in nature and not
against public policy, state or federal law, or in violation of the constitution
Define C.L.O.C. Offer & acceptance: the contract involves 2 parties: 1 who makes & offers and 1
who accepts it.
Consideration: the thing of value exchanged for the performance promised in the
contract
Sell insurance, collect premiums, service the contract, issue and countersign
Agent's responsibility
policies, agents act as the representatives for the insurance company
one who solicits, negotiates or effects contracts of insurance on behalf of an
Agent/producer
insurer.
insurance agents are granted powers by the insurance company to bind or accept
Law of agency
risks on behalf of the insurer.
authority that is distinctly, plainly expressed or implied or in writing.
Implied authority: authority granted to an agent, even though not stated, that lets
Expressed authority
the agent perform tasks usual and necessary to exercise the agent's express
authority
this is a doctrine that assumes that the agent has the authority that a normal
Apparent authority
prudent person would think or be led to believe they have.
an insurance contract is aleatory, which means that it is contingent on an uncertain
Aleatory event (a loss). Premiums are always paid but if there is no loss, the company
does not make a payment under the policy
insurance contracts are contracts of adhesion which means that one party has
Adhesion
greater power over the other in drafting the contract.
1/
5
, 4/5/25, 6:40 CT LICENSING |
PM
an insurance policy is a unilateral contract. Only the insurance company is
Unilateral
legally bound to perform its part of the agreement.
Executory both sides must perform certain acts to make the contract legally enforceable
Conditional an insurance policy has a number of conditions that both parties must abide by
Each party must disclose all material information and facts and bargain in good
Utmost good faith
faith
insurance does not cover the property itself, it insures the person who has
Personal aspect insurable interest in the property. For instance, with the sale of a vehicle, the
insurance policy does not pass to the new owner
the contract must restore the injured party to the financial position previously
Principle of indemnity
held before the loss.
Statements made on the application for insurance that the applicant believes to
Representations
be true and to the best of his/her knowledge
written or verbal untrue statements made by the insured, usually at the time when
Misrepresentations: an application is made, that had the insurer known the truth they would not have
written the policy or would have classified the risk differently.
the withholding of a material fact. The failure of the insured to reveal relevant
Concealment
facts known to the insured when applying for an insurance policy.
means a person related to you by blood, marriage or adoption who is a resident
Family member
of your household
Occupying means in, upon, getting in, on or out of
An intentional act designed to deceive another party to part with something of
Fraud
value.
something that becomes part of the contract and is a statement that is
Warranty
considered to be a guarantee 100% of the time.
Acquired autos
Listed auto
DEFINE A.L.O.T
Owned trailers
Temporary subtitute autos
if an insurance professional intentionally or unintentionally creates the impression
Estoppel that a certain fact exists when it doesn't, and an innocent party relies on that
impression and is damaged as a result.
Physical hazard any hazard arising from the material, structural or an operational condition
An increase in the chance of a loss either through carelessness, poor attitude, or
Morale Hazard
irresponsibility of the insured
Loss is an unintentional decline or disappearance in property value
Direct loss the physical loss resulting directly from a peril
Pure Risk the chance of loss without no chance of gain
Speculative risk the chance of loss or the chance of gain
Control: does not stop a loss from happening but can control the severity of the
damage
Avoid: not participating in risk related activity
DEFINE CARTS
Retain when you pay for a loss or part of the loss out of pocket
Transfer: situation where one party assumes the risk of another
Sharing: common method of risk management by members of insurance pools
Specific basis provides coverage primarily for one kind of property, in one definite location.
Blanket basis covers, by a single amount of the same kind of property in different locations
2/
5
