Anna Mattei
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a practice exam in preparation for the licensing exam

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Anna Mattei
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Arkansas Adjuster Practice Exam

Pregunta 1 de 36

1

Mark incurred $8,000. damage to his car in an accident. He received $8,000. from his insurance company and $4,000. from the other driver. By receiving a profit from the loss, Mark could be violation of:

Selecciona una de las siguientes respuestas posibles:

  • the principle of indemnity

  • the principle of financial status.

  • the principle of financial restoration

  • the principle of profit and loss.

Explicación

Pregunta 2 de 36

1

What is a reserve, in insurance terms?

Selecciona una de las siguientes respuestas posibles:

  • The amount of revenue that the insurer sets aside to pay employee salaries.

  • A pool of collected premiums that the insurer sets aside to pay claims.

  • A group of policyholders who pay into the same pool of premiums.

  • A set of rules governing how the insurance industry should work.

Explicación

Pregunta 3 de 36

1

The purpose of the principle of indemnity is:

Selecciona una de las siguientes respuestas posibles:

  • To transfer the risk of financial loss from one party to another.

  • to transfer the right to collect a debt from one party to another.

  • to prevent an insured from making a profit on a loss.

  • to prevent an insurer from making a profit on a loss.

Explicación

Pregunta 4 de 36

1

Greg plays trombone in his school band during football games. During a rally song in the stands on day. Greg annoys one of the opposing team's fans, who grabs his $400 trombone and hurls it down the bleachers, completely destroying it. Greg's insurance pays him $400 to replace the trombone, but then the opposing team's coach also offers to replace the instrument, at whatever the cost. So Greg orders a new 3,200 trombone and has the opposing team's athletic department absorb the cost. Which principle has Greg violated?

Selecciona una de las siguientes respuestas posibles:

  • the principle of indemnity

  • the principle of consideration

  • the principle of legal purpose

  • the principle of opposing team

Explicación

Pregunta 5 de 36

1

Which of the following refers to being restored to the financial condition you were in before a loss?

Selecciona una de las siguientes respuestas posibles:

  • Estoppel

  • Subjugation

  • indemnification

  • restoration

Explicación

Pregunta 6 de 36

1

Bobby just purchased an insurance policy for his home from xyz insurance. Which of the following would be a reason this policy may not be legally binding?

Selecciona una de las siguientes respuestas posibles:

  • Bobby has an outstanding warrant for selling marijuana

  • Bobby has been diagnosed with schizophrenia

  • Bobby is only 19 years old

  • Bobby paid his first premium when he and his agent agreed on a policy, but he is waiting for the policy documents to be prepared so he can sign them.

Explicación

Pregunta 7 de 36

1

Indemnification may include all of the following except:

Selecciona una de las siguientes respuestas posibles:

  • payment for pain and suffering.

  • payment for repairs to property.

  • reimbursement for hotel costs.

  • reimbursement for rental car costs.

Explicación

Pregunta 8 de 36

1

Which of the following is NOT a requirement for a legally binding contract?

Selecciona una de las siguientes respuestas posibles:

  • There must be a legal purpose

  • There must be mutual consent

  • Both parties must bring something of value

  • It must be notarized document

Explicación

Pregunta 9 de 36

1

The fee paid by the insured in exchange for an insurance policy is called a:

Selecciona una de las siguientes respuestas posibles:

  • Premium

  • legal purpose

  • binder

  • contract

Explicación

Pregunta 10 de 36

1

Which of the following best defines the principle of indemnity?

Selecciona una de las siguientes respuestas posibles:

  • Both parties to an insurance contract must contribute something of value.

  • After a loss, the insured should be restored to his approximate financial condition before the loss.

  • In order to be legally binding, a contract must have agreement, consideration,competent parties, and legal purpose.

  • In exchange for a premium, the insurer grants peace of mind by reducing the insured's insecurity about the future.

Explicación

Pregunta 11 de 36

1

Which one of the following is found on the declarations page of an insurance policy?

Selecciona una de las siguientes respuestas posibles:

  • Declarations

  • Conditions

  • Exclusions

  • The name of the insured party.

Explicación

Pregunta 12 de 36

1

In which section of an insurance policy might you find the following statement? "We, us, and our' refers to ABC insurance company.

Selecciona una de las siguientes respuestas posibles:

  • Declarations

  • Conditions

  • Definitions

  • Exclusions

Explicación

Pregunta 13 de 36

1

In which section of an insurance policy might you find the following statement? "Damage to insured property must be reported within 15 days of the damaging occurrence."

Selecciona una de las siguientes respuestas posibles:

  • Conditions

  • Exclusions

  • Definitions

  • Declaration Page

Explicación

Pregunta 14 de 36

1

Which section of an insurance policy is designed to OMIT certain risks from coverage?

Selecciona una de las siguientes respuestas posibles:

  • Insurance agreement

  • Exclsions

  • Definitions

  • Coverage Forms

Explicación

Pregunta 15 de 36

1

Which of the following would you find in the conditions section of an insurance policy?

Selecciona una de las siguientes respuestas posibles:

  • The meaning of certain important words in the contract.

  • Policy limits.

  • The insured's duty after a loss.

  • Causes of loss that are not covered.

Explicación

Pregunta 16 de 36

1

All of the following are typical exclusions in an insurance policy, EXCEPT:

Selecciona una de las siguientes respuestas posibles:

  • nuclear hazards

  • explosion

  • flooding

  • earthquakes

Explicación

Pregunta 17 de 36

1

All of the following pieces of information can be found in the Conditions section of an insurance policy, EXCEPT:

Selecciona una de las siguientes respuestas posibles:

  • the insured's duties after loss.

  • anything the insured must do for coverage to remain in effect.

  • What the insured must do in the event of a lawsuit

  • causes of loss that are not covered.

Explicación

Pregunta 18 de 36

1

Which of the following statements is true about an insurance policy?

Selecciona una de las siguientes respuestas posibles:

  • The insured is obligated to the terms of the contract for the entire policy period.

  • It is transferable if the property is sold to another party.

  • The insured sets the terms of the policy.

  • It relies on the utmost good faith of both the insured and the insurer.

Explicación

Pregunta 19 de 36

1

In an insurance policy, the summary of what the insurer will do in the even of a covered loss is called.

Selecciona una de las siguientes respuestas posibles:

  • the dec page.

  • the insurance agreement.

  • the conditions section.

  • the definitions section.

Explicación

Pregunta 20 de 36

1

In a ________________ , only one party is legally obligated to perform.

Selecciona una de las siguientes respuestas posibles:

  • Unilateral contract

  • conditional contract

  • contract of adhesion

  • contract of utmost good faith

Explicación

Pregunta 21 de 36

1

Insurance policies are unilateral contracts. This means:

Selecciona una de las siguientes respuestas posibles:

  • they rely on the honesty of both parties

  • they depend on an unknown future event.

  • only one party has an obligation to perform.

  • ambiguities are settled in favor of the insured.

Explicación

Pregunta 22 de 36

1

Which of the following is not a characteristic of insurance contracts?

Selecciona una de las siguientes respuestas posibles:

  • Conditional

  • Unilateral

  • Universal

  • Aleatory

Explicación

Pregunta 23 de 36

1

Which of the following best describes a Fraternal Benefit Society?

Selecciona una de las siguientes respuestas posibles:

  • A fraternal benefit society is a for-profit provider of insurance.

  • A fraternal benefit society uses investors' money to pay claims.

  • A fraternal benefit society pays dividends to its stockholders.

  • A fraternal benefit society is a social organization

  • A fraternal benefit society is a social organization based around common interests and beliefs.

Explicación

Pregunta 24 de 36

1

When an insurer buys insurance to reduce its exposure to loss, this called.

Selecciona una de las siguientes respuestas posibles:

  • re-insurance

  • mitigation

  • loss reduction

  • co-insurance

Explicación

Pregunta 25 de 36

1

Which of the following is NOT a characteristic of social insurance programs?

Selecciona una de las siguientes respuestas posibles:

  • Social insurance programs involve mandatory participation.

  • Social insurance programs are for-profit programs.

  • The benefits of a social insurance program may be prescribed by federal law.

  • Social insurance programs are designed to meet the needs of the general public as a whole.

Explicación

Pregunta 26 de 36

1

When an insurer buys insurance to reduce its exposure to loss, this is called.

Selecciona una de las siguientes respuestas posibles:

  • re-insurance

  • mitigation

  • loss reduction

  • co-insurance

Explicación

Pregunta 27 de 36

1

Frank purchases an automobile policy from publicly traded xyz insurance. He pays regular monthly premiums, and also purchases stock in xyz and receives dividends when the company turns a profit. From which type of company has Frank purchased insurance?

Selecciona una de las siguientes respuestas posibles:

  • Re-insurer

  • Mutual insurer

  • Stock insurer

  • Reciprocal insurer

Explicación

Pregunta 28 de 36

1

Xavier owns a small insurance company. Recently the company won a bid to insure a new housing development in Omaha, NE. His company can handle any claims that arise, but if a series of tornado were to tear through the area and destroy the entire development, Xavier's company would suffer financially. Which type of insurer could help Xavier's company protect itself the most from this potential loss?

Selecciona una de las siguientes respuestas posibles:

  • A fraternal benefits society

  • A re-insurer

  • A stock insurer

  • A reciprocal insurance group

Explicación

Pregunta 29 de 36

1

Cindy holds an insurance policy from Sine Nomine Insurance. This is not a publicly traded company, and Cindy can participate in the election of the board, receiving dividends if the company does well. Sine Nomine insurance could be best described as a:

Selecciona una de las siguientes respuestas posibles:

  • Mutual insurance company

  • A risk retention group

  • fraternal benefits society

  • stock insurance company

Explicación

Pregunta 30 de 36

1

Edward is a member of the Knights of Columbus, a religious group dedicated to voluntary service to the benefit of society. He also recently purchased a $100,000 life insurance policy from the organization. This was possible because the Knights of Columbus is:

Selecciona una de las siguientes respuestas posibles:

  • a risk retention group

  • a mutual insurer

  • a fraternal benefit society

  • a reciprocal insurer

Explicación

Pregunta 31 de 36

1

An insurer that adheres to the laws of a state but is located outside of that state is called a(n) _____

Selecciona una de las siguientes respuestas posibles:

  • national

  • foreign

  • alien

  • domestic

Explicación

Pregunta 32 de 36

1

Sure trust insurance was founded and operates in Texas. In Texas, Sure Trust is condsidered:

Selecciona una de las siguientes respuestas posibles:

  • a domestic insurer

  • a state insurer

  • an alien insurer

  • a foreign insurer

Explicación

Pregunta 33 de 36

1

A reciprocal insurer is:

Selecciona una de las siguientes respuestas posibles:

  • a publicly traded insurance company owned by stockholders, which provide capital and participate in the insurer's profits and losses.

  • An insurance company that is owned by its policyholders, is not traded publicly, and is governed by a board of directors elected by the policyholders.

  • An unincorporated organization of subscribers that operates through an attorney-in-fact to provide insurance benefits for its member's.

  • A non-profit mutual aid organization that engages in charitable or benevolent activities and provides insurance to its members.

Explicación

Pregunta 34 de 36

1

A captive insurance company:

Selecciona una de las siguientes respuestas posibles:

  • exists solely to provide insurance for its parent company.

  • provides insurance that is designed to meet the needs of the general public.

  • provides insurance for insurers

  • operates through an attorney-in-fact to provide insurance benefits for its members.

Explicación

Pregunta 35 de 36

1

An insurance company might consider any of the following a risk, EXCEPT:

Selecciona una de las siguientes respuestas posibles:

  • a jewelry collection

  • an automobile

  • a high crime neighborhood.

  • a home

Explicación

Pregunta 36 de 36

1

Which of the following would be considered an insurable risk?

Selecciona una de las siguientes respuestas posibles:

  • The gold stored in Fort Knox

  • A high crime area

  • A riverbank

  • A squadron of police cars

Explicación

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