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EXAMFX SIE LATEST WITH ACTUAL QUESTIONS
AND CORRECT VERIFIED ANSWERS ALREADY
GRADED A+ 100% GUARANTEED PASS!
Because an insurance policy is a legal contract, it must
conform to the state laws governing contracts which
require all of the following elements EXCEPT
A. Conditions
B. Consideration
C. Legal purpose
D. Offer and acceptance - .....ANSWER ...✔✔ A.
Conditions
Because an agent is using stationery with the 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?
A. Implied
B. Assumed
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C. Apparent
D. Express - .....ANSWER ...✔✔ C. Apparent
An insurance producer who by contract is bound to
write insurance for only one company is classified as
a/an
A. Independent producer
B. Captive agent
C. Solicitor
D. Broker - .....ANSWER ...✔✔ B. Captive agent
A participating insurance policy may do which of the
following?
A. Pay dividends to the policy owner
B. Provide group coverage
C. Pay dividends to the stockholder
D. Require 80% participation - .....ANSWER ...✔✔ A.
Pay dividends to the policy owner
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An insurance company receives an application with
some information missing and issues the policy
anyway. What is this called?
A. Estoppel
B. Subrogation
C. Aleatory
D. Waiver - .....ANSWER ...✔✔ D. Waiver
Which of the following is NOT a characteristic of an
insurable risk?
A. The loss exposure must be large
B. The loss must be catastrophic
C. The loss must be due to chance
D. The loss must be measurable - .....ANSWER ...✔✔
B. The loss must be catastrophic
An individual's tendency to be dishonest would be
indicative of a
A. Moral hazard
B. Morale hazard
C. Pure hazard
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D. Physical hazard - .....ANSWER ...✔✔ A. Moral
hazard
A life insurance policy has a legal purpose if both of
which of the following elements exist?
A. Offer and counteroffer
B. Policy owners and named beneficiaries
C. Insurable interest and consent
D. Underwriting and reciprocity - .....ANSWER ...✔✔
C. Insurable interest and consent
When an insured makes truthful statements on the
application for insurance and pays the required
premium, it is known as which of the following?
A. Legal purpose
B. Contract of adhesion
C. Acceptance
D. Consideration - .....ANSWER ...✔✔ D.
Consideration
All of the following are examples of risk retention
EXCEPT
EXAMFX SIE LATEST WITH ACTUAL QUESTIONS
AND CORRECT VERIFIED ANSWERS ALREADY
GRADED A+ 100% GUARANTEED PASS!
Because an insurance policy is a legal contract, it must
conform to the state laws governing contracts which
require all of the following elements EXCEPT
A. Conditions
B. Consideration
C. Legal purpose
D. Offer and acceptance - .....ANSWER ...✔✔ A.
Conditions
Because an agent is using stationery with the 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?
A. Implied
B. Assumed
,2|Page
C. Apparent
D. Express - .....ANSWER ...✔✔ C. Apparent
An insurance producer who by contract is bound to
write insurance for only one company is classified as
a/an
A. Independent producer
B. Captive agent
C. Solicitor
D. Broker - .....ANSWER ...✔✔ B. Captive agent
A participating insurance policy may do which of the
following?
A. Pay dividends to the policy owner
B. Provide group coverage
C. Pay dividends to the stockholder
D. Require 80% participation - .....ANSWER ...✔✔ A.
Pay dividends to the policy owner
,3|Page
An insurance company receives an application with
some information missing and issues the policy
anyway. What is this called?
A. Estoppel
B. Subrogation
C. Aleatory
D. Waiver - .....ANSWER ...✔✔ D. Waiver
Which of the following is NOT a characteristic of an
insurable risk?
A. The loss exposure must be large
B. The loss must be catastrophic
C. The loss must be due to chance
D. The loss must be measurable - .....ANSWER ...✔✔
B. The loss must be catastrophic
An individual's tendency to be dishonest would be
indicative of a
A. Moral hazard
B. Morale hazard
C. Pure hazard
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D. Physical hazard - .....ANSWER ...✔✔ A. Moral
hazard
A life insurance policy has a legal purpose if both of
which of the following elements exist?
A. Offer and counteroffer
B. Policy owners and named beneficiaries
C. Insurable interest and consent
D. Underwriting and reciprocity - .....ANSWER ...✔✔
C. Insurable interest and consent
When an insured makes truthful statements on the
application for insurance and pays the required
premium, it is known as which of the following?
A. Legal purpose
B. Contract of adhesion
C. Acceptance
D. Consideration - .....ANSWER ...✔✔ D.
Consideration
All of the following are examples of risk retention
EXCEPT
