NEBRASKA CROP INSURANCE EXAM 2024/2025 WITH 100% ACCURATE
SOLUTIONS
Mutual - Precise Answer ✔✔A ________ insurance company is owned
by its policyholders.
Reinsurance - Precise Answer ✔✔If an insurance company wants to
transfer all or part of the risk it has accepted, it would buy which of the
following types of insurance?
Domestic Insurer - Precise Answer ✔✔An insurer organized under the
laws of this state, whether or not it is admitted to do business in this
state.
Foreign Insurer - Precise Answer ✔✔An insurer not organized under the
laws of this state, but in one of the other states or jurisdictions within the
United States, whether or not it is admitted to do business in the state or
jurisdiction.
Alien Insurer - Precise Answer ✔✔An insurer organized under the laws
of any jurisdiction outside of the United States, whether or not it is
admitted to do business in this state.
Underwriting - Precise Answer ✔✔Which insurance company
department accepts the insurance risk?
,Producer - Precise Answer ✔✔Which of the following individuals
represents the insurance company when selling an insurance policy?
Express Authority - Precise Answer ✔✔Authority that is written into the
producer's contract. Example: producer's binding authority if written in
the contract
Implied Authority - Precise Answer ✔✔Authority the public assumes
the producer has. Example: providing quotes, completing applications
and accepting premiums on behalf of the insurer.
Apparent Authority - Precise Answer ✔✔Authority created when the
producer exceeds the authority expressed in the agency contract.
Example: the producer's issuance of a binder when, in fact, the producer
has not been granted such authority.
Moral Hazard - Precise Answer ✔✔Type of Hazard -dishonest
tendencies that increase the probability of a loss; certain characteristics
and behaviors of people. Most closely related to some form of lying,
cheating, or stealing.
Morale Hazard - Precise Answer ✔✔An attitude of indifference toward
the risk of loss that increases the probability of of a loss occurring. i.e
driving too fast for conditions, not wearing a seatbelt.
Large group with dissimilar members - Precise Answer ✔✔Each of the
following must be included in an insurable risk, except:
, 1) Calculable chance of loss
2)Excluded catastrophic perils
3)Large group of dissimilar members
4)Accidental losses
Indemnity - Precise Answer ✔✔Which principle of insurance restores
the insured to the same economic condition that existed before the loss?
1) Indemnity
2) Insurability
3) Adhesion
4) Underwriting
Indemnity - Precise Answer ✔✔Each of the following is an element of a
legal contract, except:
1) Consideration
2) Legal Purpose
3) Agreement
4) Indemnity
A statement that is guaranteed to be true - Precise Answer ✔✔A
warranty is defined as which of the following?
1) Intentional misrepresentations on the application
2) Statement in the application that is guaranteed to be true
3) A false statement in the application
SOLUTIONS
Mutual - Precise Answer ✔✔A ________ insurance company is owned
by its policyholders.
Reinsurance - Precise Answer ✔✔If an insurance company wants to
transfer all or part of the risk it has accepted, it would buy which of the
following types of insurance?
Domestic Insurer - Precise Answer ✔✔An insurer organized under the
laws of this state, whether or not it is admitted to do business in this
state.
Foreign Insurer - Precise Answer ✔✔An insurer not organized under the
laws of this state, but in one of the other states or jurisdictions within the
United States, whether or not it is admitted to do business in the state or
jurisdiction.
Alien Insurer - Precise Answer ✔✔An insurer organized under the laws
of any jurisdiction outside of the United States, whether or not it is
admitted to do business in this state.
Underwriting - Precise Answer ✔✔Which insurance company
department accepts the insurance risk?
,Producer - Precise Answer ✔✔Which of the following individuals
represents the insurance company when selling an insurance policy?
Express Authority - Precise Answer ✔✔Authority that is written into the
producer's contract. Example: producer's binding authority if written in
the contract
Implied Authority - Precise Answer ✔✔Authority the public assumes
the producer has. Example: providing quotes, completing applications
and accepting premiums on behalf of the insurer.
Apparent Authority - Precise Answer ✔✔Authority created when the
producer exceeds the authority expressed in the agency contract.
Example: the producer's issuance of a binder when, in fact, the producer
has not been granted such authority.
Moral Hazard - Precise Answer ✔✔Type of Hazard -dishonest
tendencies that increase the probability of a loss; certain characteristics
and behaviors of people. Most closely related to some form of lying,
cheating, or stealing.
Morale Hazard - Precise Answer ✔✔An attitude of indifference toward
the risk of loss that increases the probability of of a loss occurring. i.e
driving too fast for conditions, not wearing a seatbelt.
Large group with dissimilar members - Precise Answer ✔✔Each of the
following must be included in an insurable risk, except:
, 1) Calculable chance of loss
2)Excluded catastrophic perils
3)Large group of dissimilar members
4)Accidental losses
Indemnity - Precise Answer ✔✔Which principle of insurance restores
the insured to the same economic condition that existed before the loss?
1) Indemnity
2) Insurability
3) Adhesion
4) Underwriting
Indemnity - Precise Answer ✔✔Each of the following is an element of a
legal contract, except:
1) Consideration
2) Legal Purpose
3) Agreement
4) Indemnity
A statement that is guaranteed to be true - Precise Answer ✔✔A
warranty is defined as which of the following?
1) Intentional misrepresentations on the application
2) Statement in the application that is guaranteed to be true
3) A false statement in the application
