WFG Certification Exam (Complete And Verified Study material) (27pages) LEARNEXAMS

An insurer enters into a contract with a third party to insure itself against losses from insurance policies it issues. What is this agreement called? Reinsurance An insurer owned by its policyholders is called a Mutual insurer AAA insurance company has transferred a portion of its loss exposure to BBB insurance company. In this reinsurance transaction, what is AAA insurance called Primary insurers Which of the following contracts is defined as "one that restores an injured party to the condition that was present before the loss? Indemnity When handling premiums for an insured, an agent is acting in which capacity? Fiduciary The importance of a representation is demonstrated in what rule? Materiality of concealment Which principal is accurately described with the statement "Insureds are entitled to recover an amount NOT greater than the amount of their loss"? Indemnity A unilateral contract is one in which Only one party makes (the insurer) makes any kind of legally enforceable promise Which of the following is NOT required in the content of a policy? Probability of loss Which statement is correct when describing a contract of adhesion? Contract may be accepted or rejected by the insured Express power given to an agent in an agency agreement is