State Farm Chapter 1 Exam Questions with Correct Answers

State Farm Chapter 1 Exam Questions with Correct Answers Domicile - Answer-Refers to state or country where an insurer is formed or incorporated. Domestic Insurer - Answer-Organized under California Law. Foreign Insurer - Answer-Organized under a different state than California. Alien Insurer - Answer-Organized under laws of another country other than USA. Admitted (Authorized) Insurer - Answer-Authorized to transact insurance in California by the California Department of Insurance. Can be alien, foreign or domestic. Non-Admitted (Unauthorized Insurer) - Answer-Not authorized by the CDI Surplus Line - Answer-Insurance types that can not be attained from authorized insurers because of large risks. Actuarial - Answer-Gathers stat info to aid in rate making. Underwriting - Answer-Responsible for risk selection. Marketing - Answer-Responsible for advertising and selling insurance. Claims - Answer-Provide service in event of loss to policy holders. Independent Agency - Answer-Agency agreement with more than on insurer. Exclusive Agency (CAPTIVE) - Answer-State Farm, person under a agreement to represent a single insurer. Direct Writer - Answer-Agent that is employed by insurer. Direct Mail - Answer-Uses no agent only mail to market