Life and Health State Exam Questions and 100% Correct Answers

Life and Health State Exam Questions and 100% Correct Answers What documentation grants express authority to an agent? a. Fiduciary Contract b. State provisions c. Agent's contract with the principal d. Agent's insurance license Agent's contract with the principal Which of the following must an insurer obtain in order to transact insurance within a given state? a. Certificate of authority b. Producer's certificate c. Business entity license d. Insurer's license Certificate of authority The causes of loss insured against in an insurance policy are known as: a. Risks b. Hazards c. Perils d. Losses Perils A situation in which a person can only lose or have no change represents: a. Pure risk b. Speculative risk c. Adverse Selection d. Hazard Pure risk Which of the following is NOT an essential element of an insurance contract? a. Consideration b. Agreement c. Legal purpose d. Counteroffer Counteroffer In terms of parties to a contract, which of the following does NOT describe a competent party? a. the person must not be under the influence of drugs or alcohol. b. the person must be of legal age. c. the person must be mentally competent to understand the contract. d. the person must have at least completed secondary education. the person must have at least completed secondary education An insurance producer who by contract is bound to write insurance for only one company is classified as a: a. solicitor b. broker c. independent producer d. captive/ exclusive agent Captive/ exclusive agent Which of the following is the most common way to transfer risk? a. increase control of claims b. lessen the possibility of loss c. name a beneficiary d. purchase insurance Purchase insurance The authority granted to an agent through the agent's contract is referred to as: a. apparent authority b. implied authority c. absolute authority d. express authority express authority A person who does not lock the doors or does not repair leaks shows an indifferent attitude. This person presents what type of hazard? a. Moral b. Legal c. Physical d. Morale morale Hazard is best defined as a. A deliberate attempt to deceive b. Something that increases the risk of loss c. the uncertainty of loss d. Neglect to communicate a material fact something that increases the risk of loss When both parties to a contract must perform certain duties and follow rules of conduct to make the contract enforceable, the contract is a. Personal b. Unilateral c. Conditional d. Aleatory Conditional