CPCU 530 - Chapter 8 Exam Questions and
Answers with Verified Solutions | Latest
Updated 2026
What is an insurance producer? Places business with insurers and may be
agents or
brokers
What is a General Insurance Have broad powers within underwriting
Agent? guidelines
What are the 5 possible duties of 1. Solicit applicants and accept
general agents? applications
2. Receive premiums
3. Issue and renew policies
4. Appoint sub-agents
5. Adjust losses
What is a special agent? Has only the powers specified in their
agency
contract or agency agreement?
What are the three possible duties 1. Solicit applications
of 2. Forward applications to insurer
a special agent? 3. Deliver policies upon receipt of their first
premium
, What is a soliciting agent? Is either a subagent of a general agent, or
a life
health agent. Is authorized to solicit
applications
and forward them to the insurer
What is a broker? Is an agent of the insured, authorized to
procure
their insurance.
What are the four duties of a 1. Obtain insurance for their customer
broker? 2. Choose the insurer to provide needed
coverage
3. Arrange premium payments
4. Monitory policy coverage
What are three optional additional 1. Risk consulting services
services that are generally only 2. Risk control services
offered by a broker? 3. Claims services
What is actual authority of a Intentionally created by the insurer
producer?
What is express authority? Actual authority as stated in the agency
agreement,
application for insurance, or insurance
contract
What is implied authority? Actual authority created by the insurer's
acts, such
as accepting applications
Answers with Verified Solutions | Latest
Updated 2026
What is an insurance producer? Places business with insurers and may be
agents or
brokers
What is a General Insurance Have broad powers within underwriting
Agent? guidelines
What are the 5 possible duties of 1. Solicit applicants and accept
general agents? applications
2. Receive premiums
3. Issue and renew policies
4. Appoint sub-agents
5. Adjust losses
What is a special agent? Has only the powers specified in their
agency
contract or agency agreement?
What are the three possible duties 1. Solicit applications
of 2. Forward applications to insurer
a special agent? 3. Deliver policies upon receipt of their first
premium
, What is a soliciting agent? Is either a subagent of a general agent, or
a life
health agent. Is authorized to solicit
applications
and forward them to the insurer
What is a broker? Is an agent of the insured, authorized to
procure
their insurance.
What are the four duties of a 1. Obtain insurance for their customer
broker? 2. Choose the insurer to provide needed
coverage
3. Arrange premium payments
4. Monitory policy coverage
What are three optional additional 1. Risk consulting services
services that are generally only 2. Risk control services
offered by a broker? 3. Claims services
What is actual authority of a Intentionally created by the insurer
producer?
What is express authority? Actual authority as stated in the agency
agreement,
application for insurance, or insurance
contract
What is implied authority? Actual authority created by the insurer's
acts, such
as accepting applications
