WFG Certification Test | 330 Questions with 100% Correct Answers | Latest Update | Verified | 31 Pages

1. An insurer enters into a contract with a third party to insure itself against losses from insurance policies it issues. What is this agreement called? - Reinsurance An insurer owned by its policyholders is called a - Mutual insurer AAA insurance company has transferred a portion of it's loss exposure to BBB insurance company. In this reinsurance transaction, what is AAA insurance called - Primary insurers Which of the following contracts is defined as "one that restores an injured party to the condition that was present before the loss? - Indemnity When handling premiums for an insured, an agent is acting in which capacity? - Fiduciary The importance of a representation is demonstrated in what rule? - Materiality of concealment Which principal is accurately described with the statement "Insureds are entitled to recover an amount NOT greater than the amount of their loss"? - Indemnity A unilateral contract is one in which - Only one party makes (the insurer) makes any kind of legally enforceable promise Which of the following is NOT required in the content of a policy? - Probability of loss 10. Which statement is correct when describing a contract of adhesion? - Contract may be accepted or rejected by the insured