1 Exampromax - Stuvia US
2-20 Insurance License Exam Questions and
Answers 100% Correct Answers Already
Graded A+
Q: actual authority
Ans: anything a principal authorizes the agent to do
Q: aleatory contract
Ans: contract in which the amounts exchanged are not equal
Exampromax - Stuvia US
Q: conformity to statute
Ans: a policy provision that says the policy follows a state's law if the law and
policy language are in conflict
Q: contract of adhesion
Ans: contract drawn by one party and offered to another on a "take it or leave it"
basis
Q: direct writer agent
Ans: an agent that is an employee of an insurer, rather than as an independent
holding contracts with an insurer
Q: duty of accounting
Ans: the agent must account for any money entrusted to him by the principal
Q: duty of loyalty
Ans: owed by an agent to the principal- the agent must not do anything to harm
the principal
Q: duty of obedience
, 2 Exampromax - Stuvia US
Ans: the agent must obey all lawful instructions from the principal
Q: duty of reasonable care
Ans: the agent must exercise the same degree of care as a reasonable and
prudent person
Q: duty to give information
Ans: the agent must keep the principal informed about any factors that affect the
principal-agent relationship
Q: exclusive agent
Ans: an agent that has a contract with only one insurer. may or may not be an
employee of the insurance company he represents.
Exampromax - Stuvia US
Q: FAIR plan
Ans: a government program that offers property and crime insurance in the
inner cities
Q: fraternal insurers
Ans: offer coverage only to members of a particular group
Q: hazard
Ans: increases the chance of loss from a peril
Q: indemnify
Ans: to make whole again financially
Q: independent adjuster
Ans: an adjuster who works for several companies on a contract basis
Q: independent agent
Ans: an agent that has contracts with several insurers. "Owns the expirations"
, 3 Exampromax - Stuvia US
Q: Inland Marine
Ans: traditionally provides protection for property in transit over land, and
today, to collections, personal property, and other coverage for movable property
Q: insurable interest
Ans: the potential for financial loss associated with damage or destruction of
property
Q: insurance policy
Ans: the indemnity contract between an insured and insurer
Q: marine insurance
Ans: insurance that covers property that is in some way related to transportation
Exampromax - Stuvia US
Q: moral hazard
Ans: arises out of the dishonesty of an insured. Burning down your own house
Q: morale hazard
Ans: arises out of the indifference to loss because of insurance coverage
Q: ocean marine
Ans: provides protection for waterborne property
Q: peril
Ans: potential cause for loss
Q: premium
Ans: consideration paid by the insured in exchange for the insurer's promise to
indemnify
Q: reciprocal insurers
Ans: a group of individuals or firms who combine to pay each other's losses
2-20 Insurance License Exam Questions and
Answers 100% Correct Answers Already
Graded A+
Q: actual authority
Ans: anything a principal authorizes the agent to do
Q: aleatory contract
Ans: contract in which the amounts exchanged are not equal
Exampromax - Stuvia US
Q: conformity to statute
Ans: a policy provision that says the policy follows a state's law if the law and
policy language are in conflict
Q: contract of adhesion
Ans: contract drawn by one party and offered to another on a "take it or leave it"
basis
Q: direct writer agent
Ans: an agent that is an employee of an insurer, rather than as an independent
holding contracts with an insurer
Q: duty of accounting
Ans: the agent must account for any money entrusted to him by the principal
Q: duty of loyalty
Ans: owed by an agent to the principal- the agent must not do anything to harm
the principal
Q: duty of obedience
, 2 Exampromax - Stuvia US
Ans: the agent must obey all lawful instructions from the principal
Q: duty of reasonable care
Ans: the agent must exercise the same degree of care as a reasonable and
prudent person
Q: duty to give information
Ans: the agent must keep the principal informed about any factors that affect the
principal-agent relationship
Q: exclusive agent
Ans: an agent that has a contract with only one insurer. may or may not be an
employee of the insurance company he represents.
Exampromax - Stuvia US
Q: FAIR plan
Ans: a government program that offers property and crime insurance in the
inner cities
Q: fraternal insurers
Ans: offer coverage only to members of a particular group
Q: hazard
Ans: increases the chance of loss from a peril
Q: indemnify
Ans: to make whole again financially
Q: independent adjuster
Ans: an adjuster who works for several companies on a contract basis
Q: independent agent
Ans: an agent that has contracts with several insurers. "Owns the expirations"
, 3 Exampromax - Stuvia US
Q: Inland Marine
Ans: traditionally provides protection for property in transit over land, and
today, to collections, personal property, and other coverage for movable property
Q: insurable interest
Ans: the potential for financial loss associated with damage or destruction of
property
Q: insurance policy
Ans: the indemnity contract between an insured and insurer
Q: marine insurance
Ans: insurance that covers property that is in some way related to transportation
Exampromax - Stuvia US
Q: moral hazard
Ans: arises out of the dishonesty of an insured. Burning down your own house
Q: morale hazard
Ans: arises out of the indifference to loss because of insurance coverage
Q: ocean marine
Ans: provides protection for waterborne property
Q: peril
Ans: potential cause for loss
Q: premium
Ans: consideration paid by the insured in exchange for the insurer's promise to
indemnify
Q: reciprocal insurers
Ans: a group of individuals or firms who combine to pay each other's losses
