EXAM SIMULATOR QUESTIONS - NH
PROPERTY AND CASUALTY
QUESTION & ANSWERS(SCORED
A+)
Licensing - ANSWERThe purpose of licensing is to ensure that all individuals
transacting insurance are suitable and will act in good faith. Licenses remain valid
until cancelled, expired, or revoked. They must be renewed every two years.
A business entity that is acting as an insurance producer must be .... -
ANSWERlicensed
Before approving the application for license, the Commissioner must find that the
entity has: - ANSWERPaid the appropriate fees & designated a licensed producer
responsible for the business entity's compliance with the insurance laws, rules, and
regulations of NH.
The purpose of the law is to regulate the ... - ANSWERsolicitation of insurance by
financial institutions.
Financial instituations licensed to sell insurance authorizes the Comissioner to ... -
ANSWERProtect the public & maintain the equality between the insurance powers of
the state and the federally chartered financial institutions.
Producer - ANSWERA person licensed in the capacity of an agent, or broker who
sells, solicits or negotiates insurance contracts.
Producer with appointment - ANSWERA producer who has received an agency
appointment with an insurance company and therefore represents that insurance
company or carrier.
The financial institution licensed to sell insurance cannot require or imply that ... -
ANSWERThe purchase of insurance by a customer is required as a condition for a
loan. Violation is subject to fine not to exceed $2500 per violation.
(also known as perceived authority) is the appearance or the assumption of authority
based on the actions, words, or deeds of the principal or because of circumstances
the principal created - ANSWERApparent authority
The four essential elements of all legal contracts are - ANSWERoffer and
acceptance, consideration, competent parties, and legal purpose
, Insurers who meet the state's financial requirements and hold a Certificate of
Authority to transact business in the that are considered - ANSWERauthorized or
admitted
is the promise to pay in the event of loss - ANSWERconsideration
Insurance policies are not drawn up through negotiations, and an insured has little to
say about its provisions. What contract characteristic does this describe? -
ANSWERAdhesion
Which insurance option would be considered a risk-sharing arrangement? -
ANSWERReciprocal
restores an insured person to the same financial state as before the loss -
ANSWERindemnity provision
what is reinsurance? - ANSWERan agreement between a ceding insurer and
assuming insurer
what type of insurance policy insures against all risks of loss that are not specifically
excluded by the policy? - ANSWEROpen peril policy
when insured for ____ _____, it is insured for what a willing buyer would pay prior to
a loss - ANSWERmarket value
Assuming the insurer and the insured agree on the amount payable for a loss
covered under a dwelling policy, how soon after receiving the proof of loss must the
insurer pay the claim? - ANSWER60 days
Other structures may not be rented to anyone except a tenant of the main dwelling
under coverage ... - ANSWERB
Is an endorsement that may be added to a DP to increase the amount of insurance
by an annual percentage to offset the effects of inflation. This endorsement requires
additional premium. - ANSWERCoverage by endorsement
Under the dwelling policy, if an insurer chooses to repair or replace damaged or lost
property, it must inform the insured within how many days of receiving proof of loss?
- ANSWER30 days
In an ..., the insured's past experience helps determine the premium -
ANSWERexperience rating
refers to other insurance written on the same risk, but not on the same coverage
basis - ANSWERnoncurrency
The policy conditions define - ANSWERHow parties to the contract must act
following a loss
PROPERTY AND CASUALTY
QUESTION & ANSWERS(SCORED
A+)
Licensing - ANSWERThe purpose of licensing is to ensure that all individuals
transacting insurance are suitable and will act in good faith. Licenses remain valid
until cancelled, expired, or revoked. They must be renewed every two years.
A business entity that is acting as an insurance producer must be .... -
ANSWERlicensed
Before approving the application for license, the Commissioner must find that the
entity has: - ANSWERPaid the appropriate fees & designated a licensed producer
responsible for the business entity's compliance with the insurance laws, rules, and
regulations of NH.
The purpose of the law is to regulate the ... - ANSWERsolicitation of insurance by
financial institutions.
Financial instituations licensed to sell insurance authorizes the Comissioner to ... -
ANSWERProtect the public & maintain the equality between the insurance powers of
the state and the federally chartered financial institutions.
Producer - ANSWERA person licensed in the capacity of an agent, or broker who
sells, solicits or negotiates insurance contracts.
Producer with appointment - ANSWERA producer who has received an agency
appointment with an insurance company and therefore represents that insurance
company or carrier.
The financial institution licensed to sell insurance cannot require or imply that ... -
ANSWERThe purchase of insurance by a customer is required as a condition for a
loan. Violation is subject to fine not to exceed $2500 per violation.
(also known as perceived authority) is the appearance or the assumption of authority
based on the actions, words, or deeds of the principal or because of circumstances
the principal created - ANSWERApparent authority
The four essential elements of all legal contracts are - ANSWERoffer and
acceptance, consideration, competent parties, and legal purpose
, Insurers who meet the state's financial requirements and hold a Certificate of
Authority to transact business in the that are considered - ANSWERauthorized or
admitted
is the promise to pay in the event of loss - ANSWERconsideration
Insurance policies are not drawn up through negotiations, and an insured has little to
say about its provisions. What contract characteristic does this describe? -
ANSWERAdhesion
Which insurance option would be considered a risk-sharing arrangement? -
ANSWERReciprocal
restores an insured person to the same financial state as before the loss -
ANSWERindemnity provision
what is reinsurance? - ANSWERan agreement between a ceding insurer and
assuming insurer
what type of insurance policy insures against all risks of loss that are not specifically
excluded by the policy? - ANSWEROpen peril policy
when insured for ____ _____, it is insured for what a willing buyer would pay prior to
a loss - ANSWERmarket value
Assuming the insurer and the insured agree on the amount payable for a loss
covered under a dwelling policy, how soon after receiving the proof of loss must the
insurer pay the claim? - ANSWER60 days
Other structures may not be rented to anyone except a tenant of the main dwelling
under coverage ... - ANSWERB
Is an endorsement that may be added to a DP to increase the amount of insurance
by an annual percentage to offset the effects of inflation. This endorsement requires
additional premium. - ANSWERCoverage by endorsement
Under the dwelling policy, if an insurer chooses to repair or replace damaged or lost
property, it must inform the insured within how many days of receiving proof of loss?
- ANSWER30 days
In an ..., the insured's past experience helps determine the premium -
ANSWERexperience rating
refers to other insurance written on the same risk, but not on the same coverage
basis - ANSWERnoncurrency
The policy conditions define - ANSWERHow parties to the contract must act
following a loss
