Louisiana Property and Casualty | Questions with 100% Correct Answers | Updated
&Verified | 2024-2025 | 100% Score
Contracts of adhesion - ✔✔Because an insurer writes the policy language and the insured has little or no
control over the content, any ambiguity in the wording is usually resolved in favor of the insured.
Because the design and wording of a policy are in the hands of the insurer, insurance policies are said to
be:
Express Authority - ✔✔The authority of an insurance producer that is spelled out in the written words of
the agency contract between the producer and the insurer is:
The possibility of loss only - ✔✔Insurable risks must involve:
Risk - ✔✔The uncertainty about loss that exists whenever more than one outcome is possible is called:
Indemnity - ✔✔In property and casualty and in medical-expense insurance, the principle of making
someone "whole" again after a loss by paying only for actual losses is called:
The predictions become more accurate as the number of units being considered increases - ✔✔The Law
of Large Numbers states that:
Consideration - ✔✔In the formation of a legal contract, each party must give something of value. Under
contract law, this is referred to as:
At the time of application and at the time of loss - ✔✔In the property and casualty insurance field,
"insurable interest" must exist:
Stock - ✔✔In which company may stockholders share in the profits and losses of the insurer?
Mutual - ✔✔In which company may policyholders receive policy dividends when there is a profit?
,Reinsurer - ✔✔If an insurance company transfers part of their risk to another insurer, that other insurer
is known as a?
Adhesion - ✔✔An applicant for insurance must accept the entire policy as written or none of it under
the Doctrine of __________.
Representations - ✔✔Statements provided by an applicant for insurance are considered to be:
Binder - ✔✔A property and casualty insurance producer frequently has the authority to provide
temporary insurance coverage known as a:
Transferring risk - ✔✔Insurance is a means of:
General agent - ✔✔Some producers supervise all of an insurance company's business within a specified
territory. These producers appoint other producers, supervise their business, and receive an overriding
commission on that business. What is the formal name for this type of producer?
Concealment - ✔✔Failure to disclose known facts when filling out an insurance application is an act of:
Waiver - ✔✔Under contract law, the actions by a party may intentionally and voluntarily give up a
known right. When this occurs, it is known as:
Reciprocal insurer - ✔✔What is the name of the type of insurer consisting of an unincorporated group of
persons who provide insurance among themselves through an inter-exchange of indemnity agreements?
One of the parties is not competent - ✔✔Which of the following would cause a contract not to be
enforceable:
Domestic Insurer - ✔✔An insurer incorporated under the laws of the state in which it is operating is
considered to be a(n):
,Warranty - ✔✔When a property insurance applicant makes a statement on an application that becomes
part of the contract and includes a promise by the insured, the statement is considered to be a:
The Insurance Company - ✔✔A producer is a representative of:
Unilateral - ✔✔A contract where only one party, the insurer, makes an enforceable promise is said to
be:
Mutual company - ✔✔An insurance company owned by its policyholders, who receive a return of
unused premiums in the form of policy dividends, is a(n):
Acts of the insurer may lead the public to believe the producer has - ✔✔Apparent authority of an
insurance producer is the authority:
It is a form of gambling because it may or may not pay off - ✔✔All of the following are true about
"insurance" EXCEPT:
A fiduciary duty - ✔✔A producer's obligation to act in an insurance applicant's or insured's best interest,
based on the faith and trust placed on the producer by members of the insurance-buying public, is
known as:
Hazard - ✔✔Something that may increase the seriousness of a loss if loss occurs, or that increases the
likelihood that a loss will occur, is called a:
The house they own but rent to a tenant, and the car on which they are still paying - ✔✔In which of the
following would a person have an insurable interest:
Reasonable expectations - ✔✔Which insurance doctrine states that a policy should cover what a
prudent person would expect?
State Laws - ✔✔The insurance business is regulated primarily by:
, Agreement - ✔✔Which of the following contractual elements consists of the "offer" and the
"acceptance":
Signatures of each party - ✔✔Each of the following elements is necessary for formation of a legally valid
contract EXCEPT:
Estoppel
Waiver is defined as the voluntary giving up of a known right. Once waived, the right to enforce that
right in the future is no longer available (estoppel). Waiver and estoppel generally go together -
✔✔When a party appears to have given up a particular right by acts or by inaction that another party
has relied on, the legal basis for asserting the original right may have been lost. This is known as the
legal doctrine of:
An independent producer:
Independent producers are self employed and usually represent more than one insurer on a straight
commission basis. - ✔✔Represents more than one insurance company
A binder
Although binders provide temporary insurance coverage until they are superseded by the policy, they
don't guarantee that the policy will be issued, since that decision is up to the company underwriter.
However, binders are legal contracts and may be either written or oral. A producer's binding authority, if
any, is stated in their contract with the insurer they represent. - ✔✔May be oral or written
An insurance broker
Brokers represent the customer. Producers represent the insurer. A service representative works for an
insurance company in a marketing capacity - ✔✔Which type of licensee represents insureds or
prospective insureds and does not represent an insurance company?
&Verified | 2024-2025 | 100% Score
Contracts of adhesion - ✔✔Because an insurer writes the policy language and the insured has little or no
control over the content, any ambiguity in the wording is usually resolved in favor of the insured.
Because the design and wording of a policy are in the hands of the insurer, insurance policies are said to
be:
Express Authority - ✔✔The authority of an insurance producer that is spelled out in the written words of
the agency contract between the producer and the insurer is:
The possibility of loss only - ✔✔Insurable risks must involve:
Risk - ✔✔The uncertainty about loss that exists whenever more than one outcome is possible is called:
Indemnity - ✔✔In property and casualty and in medical-expense insurance, the principle of making
someone "whole" again after a loss by paying only for actual losses is called:
The predictions become more accurate as the number of units being considered increases - ✔✔The Law
of Large Numbers states that:
Consideration - ✔✔In the formation of a legal contract, each party must give something of value. Under
contract law, this is referred to as:
At the time of application and at the time of loss - ✔✔In the property and casualty insurance field,
"insurable interest" must exist:
Stock - ✔✔In which company may stockholders share in the profits and losses of the insurer?
Mutual - ✔✔In which company may policyholders receive policy dividends when there is a profit?
,Reinsurer - ✔✔If an insurance company transfers part of their risk to another insurer, that other insurer
is known as a?
Adhesion - ✔✔An applicant for insurance must accept the entire policy as written or none of it under
the Doctrine of __________.
Representations - ✔✔Statements provided by an applicant for insurance are considered to be:
Binder - ✔✔A property and casualty insurance producer frequently has the authority to provide
temporary insurance coverage known as a:
Transferring risk - ✔✔Insurance is a means of:
General agent - ✔✔Some producers supervise all of an insurance company's business within a specified
territory. These producers appoint other producers, supervise their business, and receive an overriding
commission on that business. What is the formal name for this type of producer?
Concealment - ✔✔Failure to disclose known facts when filling out an insurance application is an act of:
Waiver - ✔✔Under contract law, the actions by a party may intentionally and voluntarily give up a
known right. When this occurs, it is known as:
Reciprocal insurer - ✔✔What is the name of the type of insurer consisting of an unincorporated group of
persons who provide insurance among themselves through an inter-exchange of indemnity agreements?
One of the parties is not competent - ✔✔Which of the following would cause a contract not to be
enforceable:
Domestic Insurer - ✔✔An insurer incorporated under the laws of the state in which it is operating is
considered to be a(n):
,Warranty - ✔✔When a property insurance applicant makes a statement on an application that becomes
part of the contract and includes a promise by the insured, the statement is considered to be a:
The Insurance Company - ✔✔A producer is a representative of:
Unilateral - ✔✔A contract where only one party, the insurer, makes an enforceable promise is said to
be:
Mutual company - ✔✔An insurance company owned by its policyholders, who receive a return of
unused premiums in the form of policy dividends, is a(n):
Acts of the insurer may lead the public to believe the producer has - ✔✔Apparent authority of an
insurance producer is the authority:
It is a form of gambling because it may or may not pay off - ✔✔All of the following are true about
"insurance" EXCEPT:
A fiduciary duty - ✔✔A producer's obligation to act in an insurance applicant's or insured's best interest,
based on the faith and trust placed on the producer by members of the insurance-buying public, is
known as:
Hazard - ✔✔Something that may increase the seriousness of a loss if loss occurs, or that increases the
likelihood that a loss will occur, is called a:
The house they own but rent to a tenant, and the car on which they are still paying - ✔✔In which of the
following would a person have an insurable interest:
Reasonable expectations - ✔✔Which insurance doctrine states that a policy should cover what a
prudent person would expect?
State Laws - ✔✔The insurance business is regulated primarily by:
, Agreement - ✔✔Which of the following contractual elements consists of the "offer" and the
"acceptance":
Signatures of each party - ✔✔Each of the following elements is necessary for formation of a legally valid
contract EXCEPT:
Estoppel
Waiver is defined as the voluntary giving up of a known right. Once waived, the right to enforce that
right in the future is no longer available (estoppel). Waiver and estoppel generally go together -
✔✔When a party appears to have given up a particular right by acts or by inaction that another party
has relied on, the legal basis for asserting the original right may have been lost. This is known as the
legal doctrine of:
An independent producer:
Independent producers are self employed and usually represent more than one insurer on a straight
commission basis. - ✔✔Represents more than one insurance company
A binder
Although binders provide temporary insurance coverage until they are superseded by the policy, they
don't guarantee that the policy will be issued, since that decision is up to the company underwriter.
However, binders are legal contracts and may be either written or oral. A producer's binding authority, if
any, is stated in their contract with the insurer they represent. - ✔✔May be oral or written
An insurance broker
Brokers represent the customer. Producers represent the insurer. A service representative works for an
insurance company in a marketing capacity - ✔✔Which type of licensee represents insureds or
prospective insureds and does not represent an insurance company?
