P&C License EXAM QUESTIONS AND CORRECT
ANSWERS
RST Insurance company sells auto insurance only through the internet. What type of marketing
system does RST use? - CORRECT ANSWERS Direct Response Marketing
Wendy reads in the newspaper that the insurance company that provides one of her policies is
an admitted insurer in her state, and she asks her agent what this means. The agent tells her
this means that the insurance company: - CORRECT ANSWERS Is licensed to transact
insurance business in her state
What kind of insurer involves mutual agreements to indemnify the insureds from loss? -
CORRECT ANSWERS Reciprocal insurer
Emory and a number of other members of his church but insurance from a church-related
organization that provides insurance to members of a particular religious body. What kind of
organization is it? - CORRECT ANSWERS Fraternal benefit society
Phil currently buys insurance from another agent, but Connie, a new agent, convinces Phil that
he save money by moving his insurance to a policy she recommends. She does not tell him that
the recommended policy's premium is lower because the policy provides much less coverage
than his current policy. What duty did Connie violate? - CORRECT ANSWERS To disclose all
pertinent information concerning a proposed policy.
Maureen is an insurance agent who represents an insurance company. Under the common law
rules of agency, what is the insurance company she represents? - CORRECT ANSWERS A
principal
, Jill is an insurance agent who represents XYZ Insurance company. With what authority does Jill's
agency agreement with XYZ explicitly permit her to perform certain functions? - CORRECT
ANSWERS Express authority
An insurance producers business relationship to an insurance company is defined in a(n): -
CORRECT ANSWERS Agency agreement
Which of the following is NOT a necessary element of contract? - CORRECT
ANSWERS Written terms
Insurance can only work when the parties go the contract are completely honest with each
other. That's why insurance contract us are what kind of contracts? - CORRECT
ANSWERS Utmost good faith
Randall & Russell make a contract to rob a tourist. They agree that Randall will lead the tourist
near a dark alley where Russell will take her purse. They promise to share any money & jewelry
they acquire. This agreement is not a valid contract because: - CORRECT ANSWERS It has
an illegal purpose
Esther an underwriter for QRS insurance company, is not able to provide the coverage
requested in Benny's insurance application. Esther can reject the application, or she can -
CORRECT ANSWERS Make a counteroffer
Beth is a senior vice president at Acme Insurers. While reviewing some health insurance claims,
she discovers that one of the company's agents has been filing illegal claims for financial gain.
After discovering the fraudulent insurance act, what must Beth do? - CORRECT
ANSWERS Report the information in writing to the Texas Department of Insurance within
30 days
ANSWERS
RST Insurance company sells auto insurance only through the internet. What type of marketing
system does RST use? - CORRECT ANSWERS Direct Response Marketing
Wendy reads in the newspaper that the insurance company that provides one of her policies is
an admitted insurer in her state, and she asks her agent what this means. The agent tells her
this means that the insurance company: - CORRECT ANSWERS Is licensed to transact
insurance business in her state
What kind of insurer involves mutual agreements to indemnify the insureds from loss? -
CORRECT ANSWERS Reciprocal insurer
Emory and a number of other members of his church but insurance from a church-related
organization that provides insurance to members of a particular religious body. What kind of
organization is it? - CORRECT ANSWERS Fraternal benefit society
Phil currently buys insurance from another agent, but Connie, a new agent, convinces Phil that
he save money by moving his insurance to a policy she recommends. She does not tell him that
the recommended policy's premium is lower because the policy provides much less coverage
than his current policy. What duty did Connie violate? - CORRECT ANSWERS To disclose all
pertinent information concerning a proposed policy.
Maureen is an insurance agent who represents an insurance company. Under the common law
rules of agency, what is the insurance company she represents? - CORRECT ANSWERS A
principal
, Jill is an insurance agent who represents XYZ Insurance company. With what authority does Jill's
agency agreement with XYZ explicitly permit her to perform certain functions? - CORRECT
ANSWERS Express authority
An insurance producers business relationship to an insurance company is defined in a(n): -
CORRECT ANSWERS Agency agreement
Which of the following is NOT a necessary element of contract? - CORRECT
ANSWERS Written terms
Insurance can only work when the parties go the contract are completely honest with each
other. That's why insurance contract us are what kind of contracts? - CORRECT
ANSWERS Utmost good faith
Randall & Russell make a contract to rob a tourist. They agree that Randall will lead the tourist
near a dark alley where Russell will take her purse. They promise to share any money & jewelry
they acquire. This agreement is not a valid contract because: - CORRECT ANSWERS It has
an illegal purpose
Esther an underwriter for QRS insurance company, is not able to provide the coverage
requested in Benny's insurance application. Esther can reject the application, or she can -
CORRECT ANSWERS Make a counteroffer
Beth is a senior vice president at Acme Insurers. While reviewing some health insurance claims,
she discovers that one of the company's agents has been filing illegal claims for financial gain.
After discovering the fraudulent insurance act, what must Beth do? - CORRECT
ANSWERS Report the information in writing to the Texas Department of Insurance within
30 days
