PSI personal lines exam questions and
answers
which of the following is the type of insurance the government may step in to provide
that is NOT ordinarily available for private insuerers - Answer-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 - Answer-admitted
in which of the following types of insurance organizations are profits returned to the
insureds in the form of divendends - Answer-mutuals
which of the following is not authorized to transact insurance in the state - Answer-non
admitted insurer
all of the following sell insurance in the residential market EXCEPT - Answer-disability
insurance
what type of insurer is owned by its policy holders - Answer-mutual companies
what is another way of describing the structure of a mutual insurance company -
Answer-participating
a participating comapny headquartered in guam authorized to do business in your state
would be described as which company - Answer-an admitted, foreign mutal company
purchasing insurance that is unavailable in your state from a non admitted comapny
would be what kind of transaction - Answer-surplus lines
what part of legal contract refers to an exchhange of value - Answer-consideration
all of the following are considered to be incompentent to enter into a contract EXCEPT -
Answer-someone who is incarcerated
what is the term for a proposal made by one of the potential parties to contract -
Answer-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 - Answer-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 - Answer-aleatory
, which of the following best defines a personal insurance contract - Answer-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 - Answer-conditional
when the court resolves any ambiguity in policy wording in favor of the insured, is is
because of the - Answer-doctrine of resonable expectations
with regard to property insurance, consideration is the - Answer-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 - Answer-provisions
what is Not necessary to form a legal contract - Answer-counter-offer
which statement concerning Propert and Casualty contracts is TRUE - Answer-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 -
Answer-express
what authority is NOT written and allows a producer to conduct the business of the
insurer - Answer-implied
the public assumes a prodcing agent has what kind of authority - Answer-appaerent
authority
under the laws of agency, the producer is an agent, and the insurance company is the -
Answer-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 - Answer-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 - Answer-good faith
misrepresentation may void an insurance policy only under which of the following
circumstances - Answer-it involves a material fact
one of the criteria to determine an insurable risk is - Answer-calculable loss
which of the following gives a mortgagee rights at the time of loss - Answer-insurable
interest in the property
answers
which of the following is the type of insurance the government may step in to provide
that is NOT ordinarily available for private insuerers - Answer-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 - Answer-admitted
in which of the following types of insurance organizations are profits returned to the
insureds in the form of divendends - Answer-mutuals
which of the following is not authorized to transact insurance in the state - Answer-non
admitted insurer
all of the following sell insurance in the residential market EXCEPT - Answer-disability
insurance
what type of insurer is owned by its policy holders - Answer-mutual companies
what is another way of describing the structure of a mutual insurance company -
Answer-participating
a participating comapny headquartered in guam authorized to do business in your state
would be described as which company - Answer-an admitted, foreign mutal company
purchasing insurance that is unavailable in your state from a non admitted comapny
would be what kind of transaction - Answer-surplus lines
what part of legal contract refers to an exchhange of value - Answer-consideration
all of the following are considered to be incompentent to enter into a contract EXCEPT -
Answer-someone who is incarcerated
what is the term for a proposal made by one of the potential parties to contract -
Answer-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 - Answer-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 - Answer-aleatory
, which of the following best defines a personal insurance contract - Answer-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 - Answer-conditional
when the court resolves any ambiguity in policy wording in favor of the insured, is is
because of the - Answer-doctrine of resonable expectations
with regard to property insurance, consideration is the - Answer-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 - Answer-provisions
what is Not necessary to form a legal contract - Answer-counter-offer
which statement concerning Propert and Casualty contracts is TRUE - Answer-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 -
Answer-express
what authority is NOT written and allows a producer to conduct the business of the
insurer - Answer-implied
the public assumes a prodcing agent has what kind of authority - Answer-appaerent
authority
under the laws of agency, the producer is an agent, and the insurance company is the -
Answer-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 - Answer-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 - Answer-good faith
misrepresentation may void an insurance policy only under which of the following
circumstances - Answer-it involves a material fact
one of the criteria to determine an insurable risk is - Answer-calculable loss
which of the following gives a mortgagee rights at the time of loss - Answer-insurable
interest in the property
