A ________ insurance company is owned by its policyholders.
Stock
Reciprocal
Fraternal Benefits Society
Mutual
If an insurance company wants to transfer all or part of the risk it has accepted, it would buy which of the following types of insurance?
Residual
Reinsurance
Insurer
Which of the following in an insurance company that is organized under the laws of another state within the United States?
Domestic
Alien
Foreign
Authorized
Which insurance company department accepts the insurance risk?
Executive
Actuarial
Claims
Underwriting
Which of the following individuals represents the insurance company when selling an insurance policy?
Producer
Broker
Adjuster
Which of the following type of authority does the public assume an agent has when quoting insurance?
Express
Implied
Apparent
A producer has each of the following responsibilities to the Insurer, EXCEPT:
A fiduciary duty
Forwarding premiums to the insurer on a timely basis
Reporting material facts that may affect underwriting
A duty to recommend only high premium policies
A federal regulation called the ________________ protects consumer privacy.
Consolidated Omnibus Budget Reconciliation Act
Fraudulent Insurance Act
Privacy Protection Act
Fair Credit Reporting Act
Dishonest tendencies that increase the probability of loss are what types of hazard?
Physical
Moral
Emotional
Legal
Each of the following must be included in an insurable risk, EXCEPT:
Calculable chance of loss
Excluded catastrophic perils
Large group with dissimilar members
Accidental losses
Which principle of insurance restores the insured to the same economic condition that existed before the loss?
Indemnity
Insurability
Adhesion
Each of the following is an element of a legal contract, EXCEPT:
Consideration
Legal Purpose
Agreement
A warranty is defined as which of the following?
Intentional misrepresentation on the application
Statement in the application that is guaranteed to be true
A false statement in the application
What a reasonable and prudent buyer can expect
Each of the following is a factor considered by an underwriter, EXCEPT:
Age
Marital status
Gender
Hazardous occupation
