Idaho Bail Bondsman Insurance License
Exam Questions And Answers Verified 100% Correct
An insurance policy that does not constitute insurable interest would be considered as
_______. - ANSWER Void and illegal
Adverse selection is said to exist when ____. - ANSWER A risk insured is more likely
than average in experiencing losses
Insurance underwriting is all about _______. - ANSWER Classifying, rating and
selecting risks
An insurance risk class is usually based on a large group of people with _____. -
ANSWER Similar characteristics
True or False: It is always expected that an underwriter foresees all the possible
circumstances - ANSWER False
True or False: A warranty will never become an actual part of the insurance contract. -
ANSWER False
Insurance underwriting involves ______. - ANSWER Classifying, rating and selecting
risks
What describes the failure to act as a reasonable third person would in the exact same
situation? - ANSWER Negligence
Generally, the degree of error in the predicting the losses will decrease when ______. -
ANSWER the number of the individuals is increased
Who compiles statistical data about the exposure units and the relevant risks? -
ANSWER Actuaries
From the perspective of the insurance companies, expected losses are always based
on: - ANSWER past experience of the average risk
True or false: In theory, the congress can regulate those insurance transactions that are
of a nature of interstate commerce - ANSWER True
, True or False: The Sherman act is applicable to the insurance business to the extent
that it is not regulated by state law - ANSWER True
True or False: The Clayton act is applicable to the insurance business to the extent that
is not regulated by the state law - ANSWER True
True or False: The Federal Trade Commission Act is applicable to the insurance
business to the extent that it is not regulated by state law - ANSWER True
Which act gives the various US states the power to regulate their insurance industry? -
ANSWER The McCarran-Ferguson Act
True or False: Most of the time, state insurance statutes will override the conflicting
federal laws - ANSWER True
A _____ agent owns agency and may hire sub-agents. - ANSWER general
Who insures insurers? - ANSWER Reinsurers
An admitted insurance company possesses ______. - ANSWER a certificate of
authority
The first state of courtroom proceedings is know as _______. - ANSWER arraignment
______ is usually held at which the judge decides whether there is sufficient evidence to
force the defendant to stand trial. - ANSWER Preliminary hearing
True or False: The agency contract is a contract between the insurer and the insured -
ANSWER False
True or False: Implied actual authority may be inferred by virtue of the position held by
an agent - ANSWER True
Apparent authority is also known as ______. - ANSWER Ostensible authority
Which principal shifts the burden of proof onto the prosecution? - ANSWER
Presumption of innocence
A defendant is guaranteed a right to trial by jury for offenses that has a penalty of more
than ____ months of imprisonment. - ANSWER 6
True or False: A felony is usually a severe crime that always involves murder -
Exam Questions And Answers Verified 100% Correct
An insurance policy that does not constitute insurable interest would be considered as
_______. - ANSWER Void and illegal
Adverse selection is said to exist when ____. - ANSWER A risk insured is more likely
than average in experiencing losses
Insurance underwriting is all about _______. - ANSWER Classifying, rating and
selecting risks
An insurance risk class is usually based on a large group of people with _____. -
ANSWER Similar characteristics
True or False: It is always expected that an underwriter foresees all the possible
circumstances - ANSWER False
True or False: A warranty will never become an actual part of the insurance contract. -
ANSWER False
Insurance underwriting involves ______. - ANSWER Classifying, rating and selecting
risks
What describes the failure to act as a reasonable third person would in the exact same
situation? - ANSWER Negligence
Generally, the degree of error in the predicting the losses will decrease when ______. -
ANSWER the number of the individuals is increased
Who compiles statistical data about the exposure units and the relevant risks? -
ANSWER Actuaries
From the perspective of the insurance companies, expected losses are always based
on: - ANSWER past experience of the average risk
True or false: In theory, the congress can regulate those insurance transactions that are
of a nature of interstate commerce - ANSWER True
, True or False: The Sherman act is applicable to the insurance business to the extent
that it is not regulated by state law - ANSWER True
True or False: The Clayton act is applicable to the insurance business to the extent that
is not regulated by the state law - ANSWER True
True or False: The Federal Trade Commission Act is applicable to the insurance
business to the extent that it is not regulated by state law - ANSWER True
Which act gives the various US states the power to regulate their insurance industry? -
ANSWER The McCarran-Ferguson Act
True or False: Most of the time, state insurance statutes will override the conflicting
federal laws - ANSWER True
A _____ agent owns agency and may hire sub-agents. - ANSWER general
Who insures insurers? - ANSWER Reinsurers
An admitted insurance company possesses ______. - ANSWER a certificate of
authority
The first state of courtroom proceedings is know as _______. - ANSWER arraignment
______ is usually held at which the judge decides whether there is sufficient evidence to
force the defendant to stand trial. - ANSWER Preliminary hearing
True or False: The agency contract is a contract between the insurer and the insured -
ANSWER False
True or False: Implied actual authority may be inferred by virtue of the position held by
an agent - ANSWER True
Apparent authority is also known as ______. - ANSWER Ostensible authority
Which principal shifts the burden of proof onto the prosecution? - ANSWER
Presumption of innocence
A defendant is guaranteed a right to trial by jury for offenses that has a penalty of more
than ____ months of imprisonment. - ANSWER 6
True or False: A felony is usually a severe crime that always involves murder -
