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Nebraska Crop Insurance Exam Questions and answers | Latest 2024/25
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Nebraska Crop Insurance Exam Questions and answers | Latest 2024/25
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Nebraska Crop Insurance ExamQuestions and answers | Latest 2024/25
Mutual - A ________ insurance company is owned by its policyholders.
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Reinsurance - If an insurance company wants to transfer all or part of the risk it has
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accepted, it would buy which of the following types of insurance?
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Domestic Insurer - An insurer organized under the laws of this state, whether or not it is
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admitted to do business in this state.
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Foreign Insurer - An insurer not organized under the laws of this state, but in one of the
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other states or jurisdictions within the United States, whether or not it is admitted to do
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business in the state or jurisdiction.
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Alien Insurer - An insurer organized under the laws of any jurisdiction outside of the
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United States, whether or not it is admitted to do business in this state.
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ii Underwriting - Which insurance company department accepts the insurance risk? ii ii ii ii ii ii ii ii ii ii ii
Producer - Which of the following individuals represents the insurance company when
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selling an insurance policy?
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Express Authority - Authority that is written into the producer's contract. Example:
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producer's binding authority if written in the contract
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Implied Authority - Authority the public assumes the producer has. Example: providing
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quotes, completing applications and accepting premiums on behalf of the insurer.
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Apparent Authority - Authority created when the producer exceeds the authority
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expressed in the agency contract. Example: the producer's issuance of a binder when, in
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fact, the producer has not been granted such authority.
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Moral Hazard - Type of Hazard -dishonest tendencies that increase the probability of a
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loss; certain characteristics and behaviors of people. Most closely related to some form of
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lying, cheating, or stealing.
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Morale Hazard - An attitude of indifference toward the risk of loss that increases the
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probability of of a loss occurring. i.e driving too fast for conditions, not wearing a seatbelt.
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Large group with dissimilar members - Each of the following must be included in an
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insurable risk, except:
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1) Calculable chance of loss
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2)Excluded catastrophic perils ii ii
3)Large group of dissimilar members ii ii ii ii ii
, 4)Accidental losses ii
Indemnity - Which principle of insurance restores the insured to the same economic
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condition that existed before the loss?
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1) Indemnity
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2) Insurability
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3) Adhesion
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4) Underwriting
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Indemnity - Each of the following is an element of a legal contract, except:
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1) Consideration
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2) Legal Purpose
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3) Agreement
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4) Indemnity
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A statement that is guaranteed to be true - A warranty is defined as which of the following?
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1) Intentional misrepresentations on the application
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2) Statement in the application that is guaranteed to be true
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3) A false statement in the application
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4) What a reasonable and prudent buyer can expect
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Paid Losses + Loss Reserves / total earned premium - Which of the following calculations
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equals a company's loss ratio?
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1) All losses + expenses
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2) Paid losses + loss reserves / total earned premium
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3) Losses + total operating expenses / total written premium
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4) Paid losses + paid expenses / total earned premium
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Endorsement - Which of the following is attached to the policy to alter or add to the policy
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provisions?
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1) Binder
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2) Endorsement
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3) Definitions
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4) Excess insurance
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Bailee - A person who takes possession of another person's property in order to repair it is
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called?
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1) Assignee
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2) Bailer
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3) Subrogee
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4) Bailee
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Arbitration - If the insured does not agree with the insurer's decision regarding a claim,
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what process helps decide the outcome?
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1) Insurance company conference
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2) Arbitration
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