PROPERTY AND CASUALTY INSURANCE PRACTICE TEST QUESTIONS AND ANSWERS.

A self-insurer deals with risk by: -Transferring the risk -Avoiding the risk -Retaining the risk -Eliminating the risk Retaining the risk A property and casualty agent must complete how many hours of CE? -12 hours each year -12 hours every 2 years by their due date -complete the approved courses as specified by the law every year -Complete the requirements for CLU or CPCU -12 hours every 2 years by their due date Actual Cash Value is defined as: -Original cost of the property -Market values of the property, less depreciation -Replacement cost of the property-less depreciation, obsolescence and deterioration -Original cost of the property less depreciation -Replacement cost of the property-less depreciation, obsolescence and deterioration The replacement cost value is: -The actual cost value to repair or replace at today's labor and material costs without allowances for deterioration, obsolescence and depreciation. -Equal to market value -The cost to repair or replace with like kind and quality, less depreciation and deterioration -Actual cash value plus depreciation The actual cost value to repair or replace at today's labor and material costs without allowances for deterioration, obsolescence and depreciation Rates charged for insurance coverage sold in this state must be: -Excessive -adequate -Unfairly discriminatory -Set by the commissioner Adequate To meet the requirements for a license in Kansas you must comply with all the following EXCEPT: -Have a high school diploma or equivalency -Be of legal age -Pay a non-refundable fee -Be of good business reputation Have a high school diploma or equivalency. To restore a person back to their original economic position before a loss, without provision for material gain is the principal of: -Indemnity -Insurable interest -Consideration -Adhesion -Indemnity Which of the following could void a valid contract? -The medical examiner fails to detect an adverse health condition -The applicant knows of an adverse health condition and fails to report it -The agent knows of an adverse health condition and fails to report it -The office manager makes a change on the application -The applicant knows of an adverse health condition and fails to report it If the commissioner has reason to believe an agent is engaged in unfair or deceptive practices, their first action would be to: -Issue a desist order -Levy a fine or penalty -Serve the offender with a statement of charges and notice of hearing -Revoke the offender's license Serve the offender with a statement of charges and notice of hearing If a complaint is filed against an agent in this state, The expense for the examination of the agent's business by the insurance company: -Always paid by the insurance department -Always paid by the agent -Shard by the insurance department and the agent examined -Paid by the agent examined if the complaint is justified Paid by the agent examined if the complaint is justified A slippery floor is: -A risk -A peril -A hazard -A liability A hazard Where should an agent send a petition after a revocation of license notice has been given? -The commissioner of insurance -The kansas insurance department -The attorney general -Any court The Kansas Insurance Department When a new homeowners or personal auto policy is insured, what is the usual length of time that a company can cancel a policy for any reason? -10 days -30 days for all policies for all reasons -60 days -90 days 60 days Fire is considered to be a -Hazard -Cause of loss -Loss -Risk Cause of loss Who can cancel a binder? -The insurer -The agent -The commissioner -A binder cant be cancelled once it has been issued The insurer When does the policy period begin? -When the agent binds the coverage -When the policy is issued -15 days after payment is received -When the policy is issued by the company When the agent binds the coverage A foreign Insurance company: -is licensed to write insurance only on foreigners -may write insurance only through a non-resident agent -Has its home office located in another state -May not write insurance in this state Has its home office located in another state The following are all Unfair Trade Practices, EXCEPT -Rebating -Misrepresentation -Replacement -Coercion Replacement Replacing an existing policy to the detriment of the insured is considered: -Defamation -False adverting -Twisting -Coercion Twisting Under the jurisdiction of the unfair trade practices act, advertising can be considered to be all of the following EXCEPT -The agent's statements -Material use in an insurance presentation -Brochures produced by the insurer -Policies issued by the federal government policies issued by the federal government All of the following would have restricted rights in a contract, EXCEPT -Retired persons -minors -intoxicated persons -insane persons Retired persons When can an agent use statistics in advertising during a sales presentation? -Outside statistical information can never be used -When approved by their company -When approved by the office supervisor -When it is factual, and the sources can be identified When approved by their company If you are denied insurance because of your driving record, what law requires the insurance company to notify you of the reasons for denial? -the uniform simultaneous death law -HIPAA -The unfair trade practices act -The fair credit reporting act The fair credit reporting act When an insurer wants to advertise in this state, what must they submit to the Kansas Insurance Department? -A shopping guide -Copies of advertisements -Policy jacket -Letter of compliance Letter of compliance