C11 Chapter 4 questions with verified
answers graded A+
1. What kind of insurance salesperson sells policies on behalf of several insurers?
A. An adjuster
B. A broker
C. An underwriter
D. An employee of a direct writer - correct answer ✔✔Answer: B. A broker
2. What is one of the duties of a general agent?
A. Settle claims on behalf of the insurer
B. Sell and underwrite risks for one insurance company only
C. Appoint other agents
D. Create insurance rates and calculate premiums to be charged for categories of risks - correct
answer ✔✔Answer: C. Appoint other agents
3. Identify the true statement about agent and broker authority.
A. In an implied agency agreement, all terms have been specifically stated and agreed upon.
B. Binding authority is the capacity to confirm to applicants that all incurred losses will be
covered.
C. Agents and brokers obtain their authority from the agreement entered into with their
insurers.
D. Policy premiums belong to the agent or broker, while the commission belongs to the insurer. -
correct answer ✔✔Answer: C. Agents and brokers obtain their authority from the agreement
entered into with their insurers.
answers graded A+
1. What kind of insurance salesperson sells policies on behalf of several insurers?
A. An adjuster
B. A broker
C. An underwriter
D. An employee of a direct writer - correct answer ✔✔Answer: B. A broker
2. What is one of the duties of a general agent?
A. Settle claims on behalf of the insurer
B. Sell and underwrite risks for one insurance company only
C. Appoint other agents
D. Create insurance rates and calculate premiums to be charged for categories of risks - correct
answer ✔✔Answer: C. Appoint other agents
3. Identify the true statement about agent and broker authority.
A. In an implied agency agreement, all terms have been specifically stated and agreed upon.
B. Binding authority is the capacity to confirm to applicants that all incurred losses will be
covered.
C. Agents and brokers obtain their authority from the agreement entered into with their
insurers.
D. Policy premiums belong to the agent or broker, while the commission belongs to the insurer. -
correct answer ✔✔Answer: C. Agents and brokers obtain their authority from the agreement
entered into with their insurers.
