General Insurance Property & Causality Louisiana (Well-enlightened)

The owner of a small business applies for a fire insurance policy with limits equal to 100% of the property's value. The owner has huge unsold inventories and a large personal gambling debt. From an underwriting standpoint, this might indicate correct answers A moral hazard Which of the following best describes an insurance company that has been formed under the laws of this state? correct answers Domestic Which are the following are the authorities that an agent can hold? correct answers Expressed and Implied An insurer has made all of the decisions regarding the provisions included in the insured's policy. The insured finds an objectionable provision and wants to negotiate it with the insurer but is not allowed to do so. Her only option is to reject the policy or accept it as is. Which contract feature does this describe? correct answers Adhesion The causes of loss insured against an insurance policy are known as correct answers Perils Which of the following is a unit of measurement an underwriter uses when determining the premium rates of insurance? correct answers Exposure Illegal use of narcotics would be an example of a correct answers Moral Hazard An insured pays $100 premium every month for his insurance coverage, yet the insurer promises to pay $10,000 for a covered loss. What characteristics of an insurance contract does this describe? correct answers Aleatory Because an agent is using stationary with logo of an insurance company, applicants for insurance assume that the agent is authorized to transact on behalf of that insurer. What type of agent authority does this describe/ correct answers Apparent All of the following are examples of risk retention except correct answers Premiums A situation in which a person can only lose or have no change represents correct answers Pure Risk In insurance policies, the insured is not legally bound to any particular action in the insurance contract, but the insurer is legally obligated to pay losses covered by the policy. What contract element does this describe? correct answers Unilateral In insurance, an offer is usually made when correct answers The completed application is submitted