XCEL SOLUTIONS LEGAL CONCEPTS EXAM QUESTIONS AND ANSWERS

XCEL SOLUTIONS LEGAL CONCEPTS
EXAM QUESTIONS AND ANSWERS
Ambiguities in an insurance policy are always resolved in favor of the

A. Producer
B. Underwriter
C. Insurer
D. Insured - ANSWER-D. Insured

When the principle gives the agent authority in writing, it's referred to as

A. Imposed authority
B. Implied authority
C. Express Authority
D. Apparent Authority - ANSWER-C. Express Authority

A professional liability for which producers can be sued for mistakes of putting a
policy into effect is called

A. Errors and oversights
B. Errors and omissions
C. Fiduciary Trust
D. Fiduciary Bond - ANSWER-B. Errors and omissions

Legal purpose is a term used in contract law meaning

A. there must be an offer and acceptance
B. the contract must be aleatory
C. there must be legal reasons for entering into the contract
D. the contract must be a contract of adhesion - ANSWER-C. there must be legal
reasons for entering into the contract
The power given to an individual producer that is not specifically addressed in his/her
contract is considered what type of authority?

A. Implied
B. Apparent
C. Express
D. Discreet - ANSWER-A. Implied

All of the following are elements of an insurance policy EXCEPT

A. Claim forms
B. Conditions
C. Other insurance
D. Definitions - ANSWER-A. Claim forms