Washington State Personal Lines Insurance Exam –
Questions With Complete Solutions
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Terms in this set (155)
What does the term unilateral contract A unilateral contract is a one sided contract. This
mean? means only one party makes an enforceable promise.
Insurers are classified according to domestic, foreign, alien
their domicile. What are the three
types of insurers?
Wagering on a sporting event is Speculative risk
known as what type of risk?
What type of authority is based on the Apparent
agents actions or words?
What is consideration in an insurance Consideration is something of value that each party
contract? gives to the other. Consideration on the part of the
insurer is binding.
What does the term responsible Certain expectations for coverage that a reasonable
expectations mean in insurance? person would have based on sources other than just
the policy language
According to the law of agency, who Agent or producer
represents the principal
Insurance contracts are aleatory in Unequal values are exchanged between the parties
nature. What does that mean to a contract
,What provision states, that if a policy Indemnity
allows for greater benefits than the
financial loss incurred, the insured may
be compensated only for the amount
lost
What document is required for an Certificate Authority
insurance company to transact
insurance?
What do individuals use to transfer insurance
their risk of loss to a larger group?
What does indemnify mean in To restore an insured to the same financial status as
insurance? before a loss
When would they misrepresentation When it is intentional and material
on an insurance application being
considered fraud
What are the four elements of an Agreement (offer and acceptance), consideration,
insurance contract? competent parties, and legal purpose
What are the three types of agent express, implied, apparent
authority?
What is risk? Uncertainty of loss
A tornado that destroys a property A peril
would be an example of what
What are the five characteristics of an 1) due to chance, 2) definite and measurable, 3)
ideally insurable risk? statistically predictable, 4) not catastrophic, and 5)
randomly selected
What type of insure is formed under Foreign
the laws of another state
, If an insurer holds a certificate of Authorized or admitted
authority, it is known as what type of
insurer
What is a warranty in an insurance An absolutely true statement upon which the validity
contract? of the policy depends
Conditions that increase the chance of hazards
a loss are known as what
What are three types of hazards Physical, Moral, Morale
In insurance contracts, when does When the insurer approves a prepaid application
acceptance usually occur?
What is the term for the causes of loss Peril
during against in an insurance policy?
A situation which a person can Pure risk
experience only loss and no gain
prison what type of risk
In insurance contracts, when is the When the insurance application is submitted
offer usually made
In the agent show a relationship who Insurer
is considered the principal
What are the methods of managing Avoidance, transfer, sharing, retention, and reduction
risk?
What is consideration of the part of The promise to pay in the event of a loss
the insure?
What is the calculation for the actual Current replacement cost minus deprecation
cash value method of valuation?
Questions With Complete Solutions
Save
Terms in this set (155)
What does the term unilateral contract A unilateral contract is a one sided contract. This
mean? means only one party makes an enforceable promise.
Insurers are classified according to domestic, foreign, alien
their domicile. What are the three
types of insurers?
Wagering on a sporting event is Speculative risk
known as what type of risk?
What type of authority is based on the Apparent
agents actions or words?
What is consideration in an insurance Consideration is something of value that each party
contract? gives to the other. Consideration on the part of the
insurer is binding.
What does the term responsible Certain expectations for coverage that a reasonable
expectations mean in insurance? person would have based on sources other than just
the policy language
According to the law of agency, who Agent or producer
represents the principal
Insurance contracts are aleatory in Unequal values are exchanged between the parties
nature. What does that mean to a contract
,What provision states, that if a policy Indemnity
allows for greater benefits than the
financial loss incurred, the insured may
be compensated only for the amount
lost
What document is required for an Certificate Authority
insurance company to transact
insurance?
What do individuals use to transfer insurance
their risk of loss to a larger group?
What does indemnify mean in To restore an insured to the same financial status as
insurance? before a loss
When would they misrepresentation When it is intentional and material
on an insurance application being
considered fraud
What are the four elements of an Agreement (offer and acceptance), consideration,
insurance contract? competent parties, and legal purpose
What are the three types of agent express, implied, apparent
authority?
What is risk? Uncertainty of loss
A tornado that destroys a property A peril
would be an example of what
What are the five characteristics of an 1) due to chance, 2) definite and measurable, 3)
ideally insurable risk? statistically predictable, 4) not catastrophic, and 5)
randomly selected
What type of insure is formed under Foreign
the laws of another state
, If an insurer holds a certificate of Authorized or admitted
authority, it is known as what type of
insurer
What is a warranty in an insurance An absolutely true statement upon which the validity
contract? of the policy depends
Conditions that increase the chance of hazards
a loss are known as what
What are three types of hazards Physical, Moral, Morale
In insurance contracts, when does When the insurer approves a prepaid application
acceptance usually occur?
What is the term for the causes of loss Peril
during against in an insurance policy?
A situation which a person can Pure risk
experience only loss and no gain
prison what type of risk
In insurance contracts, when is the When the insurance application is submitted
offer usually made
In the agent show a relationship who Insurer
is considered the principal
What are the methods of managing Avoidance, transfer, sharing, retention, and reduction
risk?
What is consideration of the part of The promise to pay in the event of a loss
the insure?
What is the calculation for the actual Current replacement cost minus deprecation
cash value method of valuation?
