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FREE AND STUDY GAMES ABOUT GENERAL INSURANCE
EXAM QUESTIONS
Qs and Ans Expert- Explanation
This Exam contains:
-Guarantee passing score -15 Questions and Answers -format set of multiple-choice -Expert- Explanation Question 1: When would a misrepresentation on the insert, insurance application be considered fraud?
Answer:
If it is intentional and material.Question 2: Which method of dealing with risk is applied when a person purchases insurance.
Answer:
- Avoidance.
- Reduction.
- Sharing.
- Transfer****
Question 3: Who acts on behalf of the principal?
Answer:
Agent
Question 4: An insurance contract must contain all of the following elements to be considered legally binding except.
Answer:
- Offer and acceptance
- Competent parties
- Beneficiaries consent****
- Consideration.
Question 5: In insurance contracts, a warranty is___
Answer:
Statement that must be true.
Question 6: Mutual companies are owned by____
Answer:
Policy holders
Question 7: All of the following are examples of risk retention except.
Answer:
- Self insurance
- Premiums *****
- Deductibles.
D.Co payments.
Question 8: In an insurance contract, consideration refers to_____
Answer:
Exchange of something of value by both parties.Question 9: The insurer must be able to rely on the statements in the application, and the insured must be able to rely on the insurer to pay valid claims. In the forming of an insurance contract, this is referred to as_____
Answer:
A warranty
Question 10: Risk in insurance terminology refers to_______
Answer:
The certainty of financial loss
Question 11: Give an example of an agent fiduciary responsibilities
Answer:
Promptly fording premiums to the insurer.
Question 12: An agent's actions show what kind of authority?
Answer:
Implied Question 13: Which provision states that if a policy allows for greater compensation than the financial loss incurred, the insured may only receive benefits for the amount lost?
Answer:
Limited benefit provision Question 14: Conditions that increase the chances of an insured loss occurring are referred to as_____
Answer:
Hazards Question 15: Which of the following characteristics of a contract means the insured pays a small amount of the premium for a large amount of risk on the part of the insurance company___
Answer:
Aleatory
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