©BRIGHTSTARS EXAM SOLUTIONS
10/22/2024 12:14 PM
Insurance License Exam Exam Questions
and Answers 100% Pass
Actual authority - answer✔anything a principal authorizes the agent to do
aleatory contract - answer✔contract in which the amounts exchanged are not equal
conformity to statute - answer✔a policy provision that says the policy follows a state's law if
the law and policy language are in conflict
contract of adhesion - answer✔contract drawn by one party and offered to another on a "take
it or leave it" basis
direct writer agent - answer✔an agent that is an employee of an insurer, rather than as an
independent holding contracts with an insurer
duty of accounting - answer✔the agent must account for any money entrusted to him by the
principal
duty of loyalty - answer✔owed by an agent to the principal- the agent must not do anything to
harm the principal
duty of obedience - answer✔the agent must obey all lawful instructions from the principal
duty of reasonable care - answer✔the agent must exercise the same degree of care as a
reasonable and prudent person
duty to give information - answer✔the agent must keep the principal informed about any
factors that affect the principal-agent relationship
exclusive agent - answer✔an agent that has a contract with only one insurer. may or may not
be an employee of the insurance company he represents.
FAIR plan - answer✔a government program that offers property and crime insurance in the
inner cities
, ©BRIGHTSTARS EXAM SOLUTIONS
10/22/2024 12:14 PM
fraternal insurers - answer✔offer coverage only to members of a particular group
hazard - answer✔increases the chance of loss from a peril
indemnify - answer✔to make whole again financially
independent adjuster - answer✔an adjuster who works for several companies on a contract
basis
independent agent - answer✔an agent that has contracts with several insurers. "Owns the
expirations"
Inland Marine - answer✔traditionally provides protection for property in transit over land, and
today, to collections, personal property, and other coverage for movable property
insurable interest - answer✔the potential for financial loss associated with damage or
destruction of property
insurance policy - answer✔the indemnity contract between an insured and insurer
marine insurance - answer✔insurance that covers property that is in some way related to
transportation
moral hazard - answer✔arises out of the dishonesty of an insured. Burning down your own
house
morale hazard - answer✔arises out of the indifference to loss because of insurance coverage
ocean marine - answer✔provides protection for waterborne property
peril - answer✔potential cause for loss
premium - answer✔consideration paid by the insured in exchange for the insurer's promise to
indemnify
reciprocal insurers - answer✔a group of individuals or firms who combine to pay each other's
losses
social insurance - answer✔a minimal level of protection provided by the government.
participation is mandatory
workers comp 3a - answer✔known locations
workers comp 3c - answer✔other locations
10/22/2024 12:14 PM
Insurance License Exam Exam Questions
and Answers 100% Pass
Actual authority - answer✔anything a principal authorizes the agent to do
aleatory contract - answer✔contract in which the amounts exchanged are not equal
conformity to statute - answer✔a policy provision that says the policy follows a state's law if
the law and policy language are in conflict
contract of adhesion - answer✔contract drawn by one party and offered to another on a "take
it or leave it" basis
direct writer agent - answer✔an agent that is an employee of an insurer, rather than as an
independent holding contracts with an insurer
duty of accounting - answer✔the agent must account for any money entrusted to him by the
principal
duty of loyalty - answer✔owed by an agent to the principal- the agent must not do anything to
harm the principal
duty of obedience - answer✔the agent must obey all lawful instructions from the principal
duty of reasonable care - answer✔the agent must exercise the same degree of care as a
reasonable and prudent person
duty to give information - answer✔the agent must keep the principal informed about any
factors that affect the principal-agent relationship
exclusive agent - answer✔an agent that has a contract with only one insurer. may or may not
be an employee of the insurance company he represents.
FAIR plan - answer✔a government program that offers property and crime insurance in the
inner cities
, ©BRIGHTSTARS EXAM SOLUTIONS
10/22/2024 12:14 PM
fraternal insurers - answer✔offer coverage only to members of a particular group
hazard - answer✔increases the chance of loss from a peril
indemnify - answer✔to make whole again financially
independent adjuster - answer✔an adjuster who works for several companies on a contract
basis
independent agent - answer✔an agent that has contracts with several insurers. "Owns the
expirations"
Inland Marine - answer✔traditionally provides protection for property in transit over land, and
today, to collections, personal property, and other coverage for movable property
insurable interest - answer✔the potential for financial loss associated with damage or
destruction of property
insurance policy - answer✔the indemnity contract between an insured and insurer
marine insurance - answer✔insurance that covers property that is in some way related to
transportation
moral hazard - answer✔arises out of the dishonesty of an insured. Burning down your own
house
morale hazard - answer✔arises out of the indifference to loss because of insurance coverage
ocean marine - answer✔provides protection for waterborne property
peril - answer✔potential cause for loss
premium - answer✔consideration paid by the insured in exchange for the insurer's promise to
indemnify
reciprocal insurers - answer✔a group of individuals or firms who combine to pay each other's
losses
social insurance - answer✔a minimal level of protection provided by the government.
participation is mandatory
workers comp 3a - answer✔known locations
workers comp 3c - answer✔other locations
