BAIL BONDS 2026 CORE EXAM MANUAL QUESTIONS AND
ANSWERS MARKED A+
✔✔Material misrepresentation always involves_________. - ✔✔A misstatement made
during the insurance application.
✔✔True or False: Policy cancellation and rescission are the same thing - ✔✔False
✔✔A criminal suspect may be granted ____ release such that no bail money needs to
be paid and that no bond needs to be posted. - ✔✔Own recognizance
✔✔An insurance policy that does not constitute insurable interest would be considered
as _______. - ✔✔Void and illegal
✔✔Adverse selection is said to exist when ____. - ✔✔A risk insured is more likely than
average in experiencing losses
✔✔Insurance underwriting is all about _______. - ✔✔Classifying, rating and selecting
risks
✔✔An insurance risk class is usually based on a large group of people with _____. -
✔✔Similar characteristics
✔✔True or False: It is always expected that an underwriter foresees all the possible
circumstances - ✔✔False
✔✔True or False: A warranty will never become an actual part of the insurance
contract. - ✔✔False
✔✔Insurance underwriting involves ______. - ✔✔Classifying, rating and selecting risks
✔✔What describes the failure to act as a reasonable third person would in the exact
same situation? - ✔✔Negligence
✔✔Generally, the degree of error in the predicting the losses will decrease when
______. - ✔✔the number of the individuals is increased
✔✔Who compiles statistical data about the exposure units and the relevant risks? -
✔✔Actuaries
✔✔From the perspective of the insurance companies, expected losses are always
based on: - ✔✔past experience of the average risk
, ✔✔True or false: In theory, the congress can regulate those insurance transactions that
are of a nature of interstate commerce - ✔✔True
✔✔True or False: The Sherman act is applicable to the insurance business to the extent
that it is not regulated by state law - ✔✔True
✔✔True or False: The Clayton act is applicable to the insurance business to the extent
that is not regulated by the state law - ✔✔True
✔✔True or False: The Federal Trade Commission Act is applicable to the insurance
business to the extent that it is not regulated by state law - ✔✔True
✔✔Which act gives the various US states the power to regulate their insurance
industry? - ✔✔The McCarran-Ferguson Act
✔✔True or False: Most of the time, state insurance statutes will override the conflicting
federal laws - ✔✔True
✔✔A _____ agent owns agency and may hire sub-agents. - ✔✔general
✔✔Who insures insurers? - ✔✔Reinsurers
✔✔An admitted insurance company possesses ______. - ✔✔a certificate of authority
✔✔The first state of courtroom proceedings is know as _______. - ✔✔arraignment
✔✔______ is usually held at which the judge decides whether there is sufficient
evidence to force the defendant to stand trial. - ✔✔Preliminary hearing
✔✔True or False: The agency contract is a contract between the insurer and the
insured - ✔✔False
✔✔True or False: Implied actual authority may be inferred by virtue of the position held
by an agent - ✔✔True
✔✔Apparent authority is also known as ______. - ✔✔Ostensible authority
✔✔Which principal shifts the burden of proof onto the prosecution? - ✔✔Presumption of
innocence
✔✔A defendant is guaranteed a right to trial by jury for offenses that has a penalty of
more than ____ months of imprisonment. - ✔✔6
ANSWERS MARKED A+
✔✔Material misrepresentation always involves_________. - ✔✔A misstatement made
during the insurance application.
✔✔True or False: Policy cancellation and rescission are the same thing - ✔✔False
✔✔A criminal suspect may be granted ____ release such that no bail money needs to
be paid and that no bond needs to be posted. - ✔✔Own recognizance
✔✔An insurance policy that does not constitute insurable interest would be considered
as _______. - ✔✔Void and illegal
✔✔Adverse selection is said to exist when ____. - ✔✔A risk insured is more likely than
average in experiencing losses
✔✔Insurance underwriting is all about _______. - ✔✔Classifying, rating and selecting
risks
✔✔An insurance risk class is usually based on a large group of people with _____. -
✔✔Similar characteristics
✔✔True or False: It is always expected that an underwriter foresees all the possible
circumstances - ✔✔False
✔✔True or False: A warranty will never become an actual part of the insurance
contract. - ✔✔False
✔✔Insurance underwriting involves ______. - ✔✔Classifying, rating and selecting risks
✔✔What describes the failure to act as a reasonable third person would in the exact
same situation? - ✔✔Negligence
✔✔Generally, the degree of error in the predicting the losses will decrease when
______. - ✔✔the number of the individuals is increased
✔✔Who compiles statistical data about the exposure units and the relevant risks? -
✔✔Actuaries
✔✔From the perspective of the insurance companies, expected losses are always
based on: - ✔✔past experience of the average risk
, ✔✔True or false: In theory, the congress can regulate those insurance transactions that
are of a nature of interstate commerce - ✔✔True
✔✔True or False: The Sherman act is applicable to the insurance business to the extent
that it is not regulated by state law - ✔✔True
✔✔True or False: The Clayton act is applicable to the insurance business to the extent
that is not regulated by the state law - ✔✔True
✔✔True or False: The Federal Trade Commission Act is applicable to the insurance
business to the extent that it is not regulated by state law - ✔✔True
✔✔Which act gives the various US states the power to regulate their insurance
industry? - ✔✔The McCarran-Ferguson Act
✔✔True or False: Most of the time, state insurance statutes will override the conflicting
federal laws - ✔✔True
✔✔A _____ agent owns agency and may hire sub-agents. - ✔✔general
✔✔Who insures insurers? - ✔✔Reinsurers
✔✔An admitted insurance company possesses ______. - ✔✔a certificate of authority
✔✔The first state of courtroom proceedings is know as _______. - ✔✔arraignment
✔✔______ is usually held at which the judge decides whether there is sufficient
evidence to force the defendant to stand trial. - ✔✔Preliminary hearing
✔✔True or False: The agency contract is a contract between the insurer and the
insured - ✔✔False
✔✔True or False: Implied actual authority may be inferred by virtue of the position held
by an agent - ✔✔True
✔✔Apparent authority is also known as ______. - ✔✔Ostensible authority
✔✔Which principal shifts the burden of proof onto the prosecution? - ✔✔Presumption of
innocence
✔✔A defendant is guaranteed a right to trial by jury for offenses that has a penalty of
more than ____ months of imprisonment. - ✔✔6
