440 Pages Personal Lines
(Insurance Exam) questions
bank with 100% correct
answers with
Rationales(GUARANTEED
SUCCESSS)
Stock Insurance Company - answer Issues non-
participating policies and is owned by stockholders who
received taxable corporate dividends as a return profit
Reinsurance - answer The transfer of risk between
insurance companies. The reinsurer assumes some or all
of the risks of the ceding, or primary, insurance company
Domestic - answer Insurer organized under the laws of
the resident state
Foreign - answer Insurer organized under the laws of
another state within the United States
,Alien - answer Insurer oganized under the laws of a
country outside of the United States
Domicile - answer Refers to the state in which an insurer
is incorporated
Express - answer Authority that is written into the
producers agency contract
Implied - answer Authority that in which the public and
the insurer assumes the agent possesses
Apparent - answer Authority created when the agent
exceeds express authority and the insurer does not
respond
FCRA - answer Protects consumer privacy by ensuring
that any data collected by an insurer remains
confidential, and is accurate, relevant, and used for a
proper and specific purpose
Risk - answer The uncertainty of a loss
,Peril - answer The cause of a loss
Hazard - answer Increases the possibility of a loss
Indemnity - answer Does not allow the insured to profit
from a loss; instead, it restores the insured to the same
financial or economic condition the existed prior to loss
Adhesion - answer One party (the insurer) prepares the
contract and presents it to the second party (the insured),
who must accept it on a "take-it-or-leave-it" basis
Types Of Insurers - answer Stock Insurers, Mutual
Insurers, Reciprocal Insurers, and Self-Insurer
Reduction - answer Minimizing the chance of a loss
without eliminating the risk altogether
Retention - answer Assuming responsibility for a loss
Conditional - answer A contract that requires that both
parties perform certain duties
, Acutuary - answer Determines the probability of loss and
sets premium rates
Physical - answer A hazard that occurs when a physical
condition increases the probability of loss; use, condition,
or occupancy of property
Moral - answer A hazard that occurs when dishonest
tendencies increase the probability of a loss; certain
characteristics and behaviors of people
Morale - answer A hazard that occurs when a persons
attitude increases the probability of a loss
Speculative Risk - answer Situations where there is a
chance or possibility for loss, no loss or gain
Pure Risk - answer Situations where there is no chance for
gain, only loss. The only risk that can be insured
Misreprensentation - answer False statement contained in
the insured's application and does not usually void
coverage or the policy
(Insurance Exam) questions
bank with 100% correct
answers with
Rationales(GUARANTEED
SUCCESSS)
Stock Insurance Company - answer Issues non-
participating policies and is owned by stockholders who
received taxable corporate dividends as a return profit
Reinsurance - answer The transfer of risk between
insurance companies. The reinsurer assumes some or all
of the risks of the ceding, or primary, insurance company
Domestic - answer Insurer organized under the laws of
the resident state
Foreign - answer Insurer organized under the laws of
another state within the United States
,Alien - answer Insurer oganized under the laws of a
country outside of the United States
Domicile - answer Refers to the state in which an insurer
is incorporated
Express - answer Authority that is written into the
producers agency contract
Implied - answer Authority that in which the public and
the insurer assumes the agent possesses
Apparent - answer Authority created when the agent
exceeds express authority and the insurer does not
respond
FCRA - answer Protects consumer privacy by ensuring
that any data collected by an insurer remains
confidential, and is accurate, relevant, and used for a
proper and specific purpose
Risk - answer The uncertainty of a loss
,Peril - answer The cause of a loss
Hazard - answer Increases the possibility of a loss
Indemnity - answer Does not allow the insured to profit
from a loss; instead, it restores the insured to the same
financial or economic condition the existed prior to loss
Adhesion - answer One party (the insurer) prepares the
contract and presents it to the second party (the insured),
who must accept it on a "take-it-or-leave-it" basis
Types Of Insurers - answer Stock Insurers, Mutual
Insurers, Reciprocal Insurers, and Self-Insurer
Reduction - answer Minimizing the chance of a loss
without eliminating the risk altogether
Retention - answer Assuming responsibility for a loss
Conditional - answer A contract that requires that both
parties perform certain duties
, Acutuary - answer Determines the probability of loss and
sets premium rates
Physical - answer A hazard that occurs when a physical
condition increases the probability of loss; use, condition,
or occupancy of property
Moral - answer A hazard that occurs when dishonest
tendencies increase the probability of a loss; certain
characteristics and behaviors of people
Morale - answer A hazard that occurs when a persons
attitude increases the probability of a loss
Speculative Risk - answer Situations where there is a
chance or possibility for loss, no loss or gain
Pure Risk - answer Situations where there is no chance for
gain, only loss. The only risk that can be insured
Misreprensentation - answer False statement contained in
the insured's application and does not usually void
coverage or the policy
