INSURANCE EXAM EXAM QUESTIONS

PDF Download

INSURANCE EXAM EXAM QUESTIONS

Actual Qs and Ans - Expert-Verified Explanation -Guaranteed passing score -100 Questions and Answers

-Format: Multiple-choice / Flashcard

Question 1: Legally binding contract

Answer:

Insurance policy

Question 2: Self-regulation

Answer:

NAIC - voluntary non profit, promote uniformity, proposes laws and recommendations, no legal authority

Question 3: Law of large numbers

Answer:

Predicts total future losses, no individual losses

Question 4: Insurable interest

Answer:

Financial loss a person suffers when property is destroyed

Question 5: commission

Answer:

Only if producer is licensed in the line of insurance and appointed by the insurer

Question 6: Fiduciary responsibilities

Answer:

• financial risk, suitability, explaining coverage, collecting premium, delivering policy

Question 7: 4 risk management techniques

• reduce

Answer:

Lowering hazard

Question 8: Customer service representative (CSR)

Answer:

Licensed and appointed by instance agency

PASS EXAM AND CE

Question 9: adjuster

Answer:

claims, losses, negotiates claim settlements

Question 10: rate Penalties

Answer:

Insurer 100-5000 fine

Question 11: oklah9oma insurance rating act

Answer:

rate can't be excessive, inadequate or unfairly discriminatory

• OID approves rates

Question 12: State regulation

Answer:

OID enforces provisions of the insurance code insurance, department does not enact law

Question 13: SPECULATIVE RISK

Answer:

Chance of Financial loss or gain

Question 14: Domestic insurere

Answer:

Home office in Oklahoma

Question 15: Producer

Answer:

Agent authorized by insurer, can bind insurance coverage

Question 16: 4 risk management techniques

• transfer

Answer:

Purchase insurance so the company is at risk not you

Question 17: Conflict of interest

Answer:

Producer influenced by personal interests

Question 18: First dollar coverage

Answer:

No deductible

Question 19: binder

Answer:

temp insurance contract 90 days, written or verbal

Question 20: State regulation

Answer:

Primary source, statutes, the insurance code, OS title 36, state legislature

Question 21: Morale hazard

Answer:

Human carelessness or irresponsibility (cell phones, garage doors)

Question 22: ambiguity

Answer:

unclear

Question 23: Private rating services

Answer:

NOT OID

• financial strength, creditworthiness, investment vehicles and adequacy of reserves.

-issue ratings

Question 24: Appointment

Answer:

Insurer must appoint a producer within 15 days of the acceptance of business

Question 25: contract

Answer:

consideration - trade of value (act, promise, money)

Question 26: Unauthorized insurer

(non-admitted)

Answer:

NO ok certificate authority -surplus lines insurer -conducts insurance that an authorize insurer won't insure (KD)

Question 27: Third party

Answer:

Policy owner

Question 28: Conditional contract

Answer:

Certain rules required both parties