GENERAL INSURANCE PROPERTY &
CAUSALITY LOUISIANA EXAM
QUESTIONS AND ANSWERS
What is surplus insurance? - Answer-Insurance placed with an unauthorized insurer
Contracts that are prepared by one party and submitted to the other party on a take-it-
or-leave-it basis are classified as - Answer-Contracts of Adhesion
A participating insurance policy may do which of the following? - Answer-Pay dividends
to the policy owner
What documentation grants express authority to an agent? - Answer-Agent's contract
with the principal
If an insurance underwriter discovers that an applicant for a policy has been convicted
of submitting a fraudulent claim to an insurer in the past, the application may be rejected
as a - Answer-Moral Hazard
Which of the following is an example of a producers fiduciary duty? - Answer-The trust
that a client places in the producer in regard to handling premiums
A peril is defined as: - Answer-The cause of the loss insured against.
Which statement regarding insurable risk is NOT correct? - Answer-Insureds cannot be
randomly selected
An insured stated on her application for life insurance that she had never had a heart
attack, when in fact she had a series of minor heart attacks last year for which she
sought medical attention. Which of the following will explain the reason a death benefit
claim is denied? - Answer-Material misrepresentation
An insured wants to transfer his personal insurance policy to a friend. Under what
conditions would this be possible? - Answer-The insured will need a written consent of
the insurer
An insurer neglects to pay a legitimate claim that is covered under the terms of the
policy. Which of the following insurance principles has the insurer violated? - Answer-
Consideration
For the purpose of insurance, risk is defined as - Answer-the uncertainty or chance of
loss
CAUSALITY LOUISIANA EXAM
QUESTIONS AND ANSWERS
What is surplus insurance? - Answer-Insurance placed with an unauthorized insurer
Contracts that are prepared by one party and submitted to the other party on a take-it-
or-leave-it basis are classified as - Answer-Contracts of Adhesion
A participating insurance policy may do which of the following? - Answer-Pay dividends
to the policy owner
What documentation grants express authority to an agent? - Answer-Agent's contract
with the principal
If an insurance underwriter discovers that an applicant for a policy has been convicted
of submitting a fraudulent claim to an insurer in the past, the application may be rejected
as a - Answer-Moral Hazard
Which of the following is an example of a producers fiduciary duty? - Answer-The trust
that a client places in the producer in regard to handling premiums
A peril is defined as: - Answer-The cause of the loss insured against.
Which statement regarding insurable risk is NOT correct? - Answer-Insureds cannot be
randomly selected
An insured stated on her application for life insurance that she had never had a heart
attack, when in fact she had a series of minor heart attacks last year for which she
sought medical attention. Which of the following will explain the reason a death benefit
claim is denied? - Answer-Material misrepresentation
An insured wants to transfer his personal insurance policy to a friend. Under what
conditions would this be possible? - Answer-The insured will need a written consent of
the insurer
An insurer neglects to pay a legitimate claim that is covered under the terms of the
policy. Which of the following insurance principles has the insurer violated? - Answer-
Consideration
For the purpose of insurance, risk is defined as - Answer-the uncertainty or chance of
loss
