INSURANCE BROKER EXAM QUESTIONS AND ANSWERS FULLY SOLVED
Adverse selection - Answers insuring of risks that are more prone to losses than the average risk
Agent/Producer - Answers a legal representative of an insurance company; the classification of producer
usually includes agents and brokers; agents are the agents of the insurers
Applicant or proposed insured - Answers a person applying for Insurance can
Beneficiary - Answers a person who receives the benefits of an insurance policy
Death benefit - Answers the amount paid upon the death of the insured in a life insurance policy
fraud - Answers intentional misrepresentation or deceit with the intent to induce a person to part with
something of value
Insurance policy - Answers a contract between a policyowner (and/or insured) and an insurance
company which agrees to pay the insured or the beneficiary for loss caused by specific events
Insured - Answers person covered by the insurance policy; may or may not be the policyowner
Insurer (principal) - Answers the company who issues an insurance policy
Lapse - Answers policy termination due to nonpayment of premium
Life insurance - Answers coverage on human lives
Policyowner - Answers the person entitled to exercise the rights and privileges in the policy
Premium - Answers the money paid to the insurance company for the insurance policy
Adverse selection - Answers insuring of risks that are more prone to losses than the average risk
Agent/Producer - Answers a legal representative of an insurance company; the classification of producer
usually includes agents and brokers; agents are the agents of the insurers
Applicant or proposed insured - Answers a person applying for Insurance can
Beneficiary - Answers a person who receives the benefits of an insurance policy
Death benefit - Answers the amount paid upon the death of the insured in a life insurance policy
fraud - Answers intentional misrepresentation or deceit with the intent to induce a person to part with
something of value
Insurance policy - Answers a contract between a policyowner (and/or insured) and an insurance
company which agrees to pay the insured or the beneficiary for loss caused by specific events
Insured - Answers person covered by the insurance policy; may or may not be the policyowner
Insurer (principal) - Answers the company who issues an insurance policy
Lapse - Answers policy termination due to nonpayment of premium
Life insurance - Answers coverage on human lives
Policyowner - Answers the person entitled to exercise the rights and privileges in the policy
Premium - Answers the money paid to the insurance company for the insurance policy
