FX Insurance Tests Bundle Set

Agent/Producer CORRECT ANSWER a legal representative of an insurance company; the classification of producer usually includes agents and brokers; agents are the agents of the insurer Applicants (or proposed insured) CORRECT ANSWER a person applying for insurance Broker CORRECT ANSWER an insura...

Exam FX - Insurance Regulation questions with correct answers

Exam FX Insurance _ Chapter 1 : Introduction to Insurance questions with correct answers

Exam FX general insurance concepts questions with correct answers

The causes of loss insured against in an insurance policy are known as CORRECT ANSWER Perils Before an insurer will pay any loss under a policy, what is usually required from the insured? CORRECT ANSWER Proof of loss An insured works outside the home. The insured's sister lives with him and c...

applicant CORRECT ANSWER (proposed insured) a person applying for insurance broker CORRECT ANSWER an insurance producer not appointed by an insurer and is deemed to represent the client insurance policy CORRECT ANSWER a contract between a policyowner and an insurance company which agrees to pa...

50/50 CORRECT ANSWER Ray has an individual major medical policy that requires a coinsurance payment. Ray rarely visits his physician and would prefer to pay the lowest premium possible. Which coinsurance arranngement would be best for Ray? Single payment or periodic payments CORRECT ANSWER Which ...

An insured pays a $100 premium every month for his insurance coverage, yet the insurer promises to pay $10,000 for a covered loss. What characteristic of an insurance contract does this describe? CORRECT ANSWER Aleatory: an aleatory contract means unequal amounts are exchanged between payments and b...

To whom may a certificate of authority be issued? CORRECT ANSWER To an insurer authorized to transact business in this state Who must be a member of insurance guaranty associations? CORRECT ANSWER Any authorized insurer within a state If an insurer meets the state's financial requirements and...

The members of a limited liability company are insureds under a businessowners policy (BOP) if CORRECT ANSWER The limited liability company is designated as the named insured. An endorsement added to a businessowners policy that provides coverage for direct damage caused by utility service disrup...

Insurance Transactions include what 4 tactics CORRECT ANSWER Solicitation Negotiation Sale Advising 2 types of Risk CORRECT ANSWER 1. Pure 2. Speculative Pure Risk Definition CORRECT ANSWER A risk that can only can result in loss or no change Speculative Risk Definition CORRECT ANSWER ...

What is insurance? CORRECT ANSWER Insurance transfers the risk of loss from an individual or business entity to an insurance company, which in turn spreads the costs of unexpected losses to many individuals. What is risk? CORRECT ANSWER Risk is the uncertainty or chance of a loss occurring. Wh...

An insurer that holds a Certificate of Authority in the state in which it transacts business is considered a/an CORRECT ANSWER Authorized User An applicant signs an application for a $25,000 life insurance policy, pays the initial premium, and receives a conditional receipt. If the applicant is k...

Under the Affordable Care Act, what is the limiting age for coverage of children of the insured CORRECT ANSWER Age 26 Premium will be refunded CORRECT ANSWER After the elimination period, a totally disabled insured qualified for benefits from a disability income policy that has a wavier of premiu...