MO PROPERTY AND CASUALTY COMPREHENSIVE
UPDATED 2026 QUESTIONS AND ANSWERS SURE
A+
✔✔liability - ✔✔the risk that we will suffer financial loss as a result of our actions toward
others
✔✔Casualty Insurance - ✔✔insurance that covers for losses due to accident, chance, or
negligence
✔✔Personal lines - ✔✔property and casualty coverages that protect an individual or
family
✔✔Commercial lines - ✔✔coverages designed for businesses
✔✔Countersigning - ✔✔the agent signs each new policy prepared by the company
before delivering it to the insured. In most states, the agent's countersignature is
required to validate the contract.
✔✔field underwriting - ✔✔using preestablished criteria to seek out the type of business
that is likely to be acceptable to the company
, ✔✔quotation - ✔✔show the prospect what the premium for the proposed coverage will
be
✔✔suspense or diary system - ✔✔alerts the agent before the policy renewal time
✔✔errors and omissions (E&O) insurance - ✔✔should be purchased by agents to
protect themselves against legal liability arising from inadvertent errors or omissions
✔✔Express authority - ✔✔the authority specifically given to an agent, either orally or in
writing, by the principal. Written authority is usually provided through an agency
agreement that allows the agent to countersign, issue, and deliver policies and provide
other customary services on all contracts accepted by the insurer from the agent.
✔✔Implied authority - ✔✔authority given by the insurance company to the agent that is
not formally expressed or communicated. This implied authority allows the agent to
perform all of the usual and necessary tasks to sell and service insurance contracts and
to fully exercise the agent's express authority.
✔✔Apparent authority - ✔✔doctrine that holds that an agent may have whatever
authority a reasonable person would assume the agent has. In the public's eye, an
agent acting under apparent authority binds the company as fully as under expressed or
implied authority.
✔✔exclusive or captive agency system - ✔✔he insurance company contracts with
agencies, which are independent businesses, to represent and sell insurance only for
that insurance company.
✔✔direct writer system - ✔✔the insurance company's agents are actually employees.
They may receive a salary, be paid by commission, or a combination of both.
✔✔direct response system - ✔✔there are no agents. These companies sell through
direct mail or over the phone.
✔✔independent agency system - ✔✔agencies that are independent contractors
contract with several different companies to represent and sell insurance for those
companies.If the agency or employment relationship terminates, that person loses all
rights and interest in company business and related commissions.
✔✔independent or nonexclusive agent - ✔✔An agent who represents more than one
company.Several companies may authorize the agent to sell insurance for them, but the
agent remains an independent businessperson. Agents collect commissions on the
policies sold but collect no salary from the companies they represent.the agent owns
and controls accounts, policy records, and renewals. If an independent agent's contract
with a particular insurer terminates, that agent retains rights to active accounts and may
place them with another insurer and continue to receive commissions.
UPDATED 2026 QUESTIONS AND ANSWERS SURE
A+
✔✔liability - ✔✔the risk that we will suffer financial loss as a result of our actions toward
others
✔✔Casualty Insurance - ✔✔insurance that covers for losses due to accident, chance, or
negligence
✔✔Personal lines - ✔✔property and casualty coverages that protect an individual or
family
✔✔Commercial lines - ✔✔coverages designed for businesses
✔✔Countersigning - ✔✔the agent signs each new policy prepared by the company
before delivering it to the insured. In most states, the agent's countersignature is
required to validate the contract.
✔✔field underwriting - ✔✔using preestablished criteria to seek out the type of business
that is likely to be acceptable to the company
, ✔✔quotation - ✔✔show the prospect what the premium for the proposed coverage will
be
✔✔suspense or diary system - ✔✔alerts the agent before the policy renewal time
✔✔errors and omissions (E&O) insurance - ✔✔should be purchased by agents to
protect themselves against legal liability arising from inadvertent errors or omissions
✔✔Express authority - ✔✔the authority specifically given to an agent, either orally or in
writing, by the principal. Written authority is usually provided through an agency
agreement that allows the agent to countersign, issue, and deliver policies and provide
other customary services on all contracts accepted by the insurer from the agent.
✔✔Implied authority - ✔✔authority given by the insurance company to the agent that is
not formally expressed or communicated. This implied authority allows the agent to
perform all of the usual and necessary tasks to sell and service insurance contracts and
to fully exercise the agent's express authority.
✔✔Apparent authority - ✔✔doctrine that holds that an agent may have whatever
authority a reasonable person would assume the agent has. In the public's eye, an
agent acting under apparent authority binds the company as fully as under expressed or
implied authority.
✔✔exclusive or captive agency system - ✔✔he insurance company contracts with
agencies, which are independent businesses, to represent and sell insurance only for
that insurance company.
✔✔direct writer system - ✔✔the insurance company's agents are actually employees.
They may receive a salary, be paid by commission, or a combination of both.
✔✔direct response system - ✔✔there are no agents. These companies sell through
direct mail or over the phone.
✔✔independent agency system - ✔✔agencies that are independent contractors
contract with several different companies to represent and sell insurance for those
companies.If the agency or employment relationship terminates, that person loses all
rights and interest in company business and related commissions.
✔✔independent or nonexclusive agent - ✔✔An agent who represents more than one
company.Several companies may authorize the agent to sell insurance for them, but the
agent remains an independent businessperson. Agents collect commissions on the
policies sold but collect no salary from the companies they represent.the agent owns
and controls accounts, policy records, and renewals. If an independent agent's contract
with a particular insurer terminates, that agent retains rights to active accounts and may
place them with another insurer and continue to receive commissions.
