PSI personal lines exam || QUESTIONS WITH A+
GRADED SOLUTIONS.
which of the following is the type of insurance the government may step in to provide that is
NOT ordinarily available for private insuerers correct answers residential market
which of the following describes an insurer that meets the insurance department's standards and
is authorized to do business in the state correct answers admitted
in which of the following types of insurance organizations are profits returned to the insureds in
the form of divendends correct answers mutuals
which of the following is not authorized to transact insurance in the state correct answers non
admitted insurer
all of the following sell insurance in the residential market EXCEPT correct answers disability
insurance
what type of insurer is owned by its policy holders correct answers mutual companies
what is another way of describing the structure of a mutual insurance company correct answers
participating
a participating comapny headquartered in guam authorized to do business in your state would be
described as which company correct answers an admitted, foreign mutal company
purchasing insurance that is unavailable in your state from a non admitted comapny would be
what kind of transaction correct answers surplus lines
what part of legal contract refers to an exchhange of value correct answers consideration
all of the following are considered to be incompentent to enter into a contract EXCEPT correct
answers someone who is incarcerated
what is the term for a proposal made by one of the potential parties to contract correct answers
offer
when one party of a contract has greater power over the other party in a drafting the contract,
what type of contract is it correct answers contract of adhension
some insureds pay insurance premiums and never have a covered loss, while others may have a
catastrophic event that pays much more than a lifetime of premiums. As a result, insurance
contracts are considered to be correct answers aleatory
, which of the following best defines a personal insurance contract correct answers the insurance
contract is designed to transfer risk from the insured to the insurer
if a covered loss occurs, the insured must provide proof of loss, and the insurer must respond
within a specified time period following the loss. this is because insurance contracts are wich
type of contract correct answers conditional
when the court resolves any ambiguity in policy wording in favor of the insured, is is because of
the correct answers doctrine of resonable expectations
with regard to property insurance, consideration is the correct answers payment of premium by
the insured in return for the promise to pay covered claims
all of the following are elements of a valid contract EXCEPT correct answers provisions
what is Not necessary to form a legal contract correct answers counter-offer
which statement concerning Propert and Casualty contracts is TRUE correct answers property is
a two-party contract, and casualty is a third party contract
what type of authority is in writing and allows a producer to act on behalf of the insurer correct
answers express
what authority is NOT written and allows a producer to conduct the business of the insurer
correct answers implied
the public assumes a prodcing agent has what kind of authority correct answers appaerent
authority
under the laws of agency, the producer is an agent, and the insurance company is the correct
answers principal
which characteristic of an insurance contract states that when a loss occurs the insured should be
restored to the financial condition he was in before the loss correct answers contract of indemnity
which principle holds that the insurer relies on the truthfulness of the applicant and in return
promises ans has the ability to pay claims correct answers good faith
misrepresentation may void an insurance policy only under which of the following circumstances
correct answers it involves a material fact
one of the criteria to determine an insurable risk is correct answers calculable loss
which of the following gives a mortgagee rights at the time of loss correct answers insurable
interest in the property
GRADED SOLUTIONS.
which of the following is the type of insurance the government may step in to provide that is
NOT ordinarily available for private insuerers correct answers residential market
which of the following describes an insurer that meets the insurance department's standards and
is authorized to do business in the state correct answers admitted
in which of the following types of insurance organizations are profits returned to the insureds in
the form of divendends correct answers mutuals
which of the following is not authorized to transact insurance in the state correct answers non
admitted insurer
all of the following sell insurance in the residential market EXCEPT correct answers disability
insurance
what type of insurer is owned by its policy holders correct answers mutual companies
what is another way of describing the structure of a mutual insurance company correct answers
participating
a participating comapny headquartered in guam authorized to do business in your state would be
described as which company correct answers an admitted, foreign mutal company
purchasing insurance that is unavailable in your state from a non admitted comapny would be
what kind of transaction correct answers surplus lines
what part of legal contract refers to an exchhange of value correct answers consideration
all of the following are considered to be incompentent to enter into a contract EXCEPT correct
answers someone who is incarcerated
what is the term for a proposal made by one of the potential parties to contract correct answers
offer
when one party of a contract has greater power over the other party in a drafting the contract,
what type of contract is it correct answers contract of adhension
some insureds pay insurance premiums and never have a covered loss, while others may have a
catastrophic event that pays much more than a lifetime of premiums. As a result, insurance
contracts are considered to be correct answers aleatory
, which of the following best defines a personal insurance contract correct answers the insurance
contract is designed to transfer risk from the insured to the insurer
if a covered loss occurs, the insured must provide proof of loss, and the insurer must respond
within a specified time period following the loss. this is because insurance contracts are wich
type of contract correct answers conditional
when the court resolves any ambiguity in policy wording in favor of the insured, is is because of
the correct answers doctrine of resonable expectations
with regard to property insurance, consideration is the correct answers payment of premium by
the insured in return for the promise to pay covered claims
all of the following are elements of a valid contract EXCEPT correct answers provisions
what is Not necessary to form a legal contract correct answers counter-offer
which statement concerning Propert and Casualty contracts is TRUE correct answers property is
a two-party contract, and casualty is a third party contract
what type of authority is in writing and allows a producer to act on behalf of the insurer correct
answers express
what authority is NOT written and allows a producer to conduct the business of the insurer
correct answers implied
the public assumes a prodcing agent has what kind of authority correct answers appaerent
authority
under the laws of agency, the producer is an agent, and the insurance company is the correct
answers principal
which characteristic of an insurance contract states that when a loss occurs the insured should be
restored to the financial condition he was in before the loss correct answers contract of indemnity
which principle holds that the insurer relies on the truthfulness of the applicant and in return
promises ans has the ability to pay claims correct answers good faith
misrepresentation may void an insurance policy only under which of the following circumstances
correct answers it involves a material fact
one of the criteria to determine an insurable risk is correct answers calculable loss
which of the following gives a mortgagee rights at the time of loss correct answers insurable
interest in the property
