Question 1

What is waiver and estoppel? Why do agents and loss adjusters have to be careful because of waiver and estoppel?

Accepted Answer

A waiver is the intentional abandonment

Question 2

What is the relationship between the underwriter and the actuary? How do they interact?

Accepted Answer

The underwriter uses the classification

Question 3

An insurance broker legally represents the insurance consumer

Accepted Answer

A) True 
 B)False

Question 4

One duty of the insurance company actuary is to:

Accepted Answer

A) handle claims when they involve property exposures and losses in multiple states 
B) manage all contract negotiations when the agency agreement is signed by the agent and company 
C) determine premium rates and classification schemes for the underwriters to apply 
D) eliminate exposures from the pool that are going to have a loss 
A) handle claims when they involve property exposures and losses in multiple states 
B) manage all contract negotiations when the agency agreement is signed by the agent and company 
C) determine premium rates and classification schemes for the underwriters to apply 
D) eliminate exposures from the pool that are going to have a loss

Question 5

An agency contract determines the rights and duties of both the agent and the insurer.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following pieces of information would be the LEAST useful to a property insurance underwriter?

Accepted Answer

A) age of the property owner 
B) age of the property 
C) use of the property 
D) what the surrounding properties are like 
A) age of the property owner 
B) age of the property 
C) use of the property 
D) what the surrounding properties are like

Question 7

Monah Lott is an agent for Mutual of Oregon Insurance. Monah has been strictly prohibited from accepting premium payments from his clients;they are instead supposed to remit payments directly to the insurer. Mutual of Oregon sends Venus Planet a renewal notice with a premium invoice,and nowhere on the invoice does it tell her that she cannot remit payment to her agent. To save herself a postage stamp,she drops the payment off at Monahs office. Monah accepts the payment,and puts it in her own account. When Mutual of Oregon does not receive Venuss premium,it sends her a cancellation notice. Before receiving her cancellation notice,she suffers a loss and expects Mutual of Oregon to pay her claim. What will likely happen in this scenario?

Accepted Answer

A) Mutual of Oregon will likely have to pay the claim 
B) Mutual of Oregon will not have to pay the claim, but Monah Lott likely will 
C) Neither Mutual of Oregon, nor Monah Lott, will have to pay the claim 
D) The claim will be paid by the court, and it will then sue Mutual of Oregon 
A) Mutual of Oregon will likely have to pay the claim 
B) Mutual of Oregon will not have to pay the claim, but Monah Lott likely will 
C) Neither Mutual of Oregon, nor Monah Lott, will have to pay the claim 
D) The claim will be paid by the court, and it will then sue Mutual of Oregon

Question 8

Direct writing insurance companies typically use independent agents to represent them in the sales process.

Accepted Answer

A) True 
 B)False

Question 9

In 2004,the attorney general of New York accused insurance brokers of:

Accepted Answer

A) poor financial condition that could lead to insolvency 
B) bid rigging 
C) covering up investments in illegal securities 
D) all of the above 
A) poor financial condition that could lead to insolvency 
B) bid rigging 
C) covering up investments in illegal securities 
D) all of the above

Question 10

What are the steps in the loss adjustment process?

Accepted Answer

The loss adjuster must 1)investigate the

Question 11

At the present,most insurance sold over the internet is:

Accepted Answer

A) illegal 
B) personal lines coverage 
C) small business coverage 
D) expensive 
A) illegal 
B) personal lines coverage 
C) small business coverage 
D) expensive

Question 12

What is the difference between an agent and a broker?

Accepted Answer

Both agents and brokers are controlled b

Question 13

Loss adjusters perform all the following functions except:

Accepted Answer

A) investigate claims to determine if fraud is involved 
B) negotiate with the insured on the amount of damage claims 
C) recommend denial of claims 
D) act as the company's lawyer if the case goes to court 
A) investigate claims to determine if fraud is involved 
B) negotiate with the insured on the amount of damage claims 
C) recommend denial of claims 
D) act as the company's lawyer if the case goes to court

Question 14

Which of the following is not a duty of an actuary?

Accepted Answer

A) calculate rates 
B) calculate dividends 
C) calculate loss reserves 
D) identify individual exposures that are going to have a loss 
A) calculate rates 
B) calculate dividends 
C) calculate loss reserves 
D) identify individual exposures that are going to have a loss

Question 15

Fergie is a salaried claims adjuster who works exclusively for Mutual of Kentucky Insurance. What kind of claims adjuster is Fergie?

Accepted Answer

A) Independent 
B) Public 
C) Private 
D) Direct 
A) Independent 
B) Public 
C) Private 
D) Direct

Question 16

Which of the following is not a duty of the agent?

Accepted Answer

A) no self dealing at principal's expense 
B) forwarding all premiums to the principal 
C) not submitting any type of business the insurer does not want 
D) to guarantee the insurance buyer that the insurer will write them a policy at an affordable rate 
A) no self dealing at principal's expense 
B) forwarding all premiums to the principal 
C) not submitting any type of business the insurer does not want 
D) to guarantee the insurance buyer that the insurer will write them a policy at an affordable rate

Question 17

Brokers generally stand in the same legal position as agents with respect to the power to bind the insurer to a property insurance contract.

Accepted Answer

A) True 
 B)False

What is waiver and estoppel? Why do agents and loss adjusters have to be careful because of waiver and estoppel?

What is the relationship between the underwriter and the actuary? How do they interact?

An insurance broker legally represents the insurance consumer

One duty of the insurance company actuary is to:

An agency contract determines the rights and duties of both the agent and the insurer.

Which of the following pieces of information would be the LEAST useful to a property insurance underwriter?

Direct writing insurance companies typically use independent agents to represent them in the sales process.

In 2004,the attorney general of New York accused insurance brokers of:

What are the steps in the loss adjustment process?

At the present,most insurance sold over the internet is:

What is the difference between an agent and a broker?

Loss adjusters perform all the following functions except:

Which of the following is not a duty of an actuary?

Fergie is a salaried claims adjuster who works exclusively for Mutual of Kentucky Insurance. What kind of claims adjuster is Fergie?

Which of the following is not a duty of the agent?

Brokers generally stand in the same legal position as agents with respect to the power to bind the insurer to a property insurance contract.

Fundamentals and Terminology

Defining the Insurable Event

Risk Management

Financial Services Companies

the Insurance Market: the Economic Problem

Insurance Regulation

Insurance Contracts

Basic Property and Liability Insurance Contracts

Homeowners Insurance

the Personal Auto Policy

Professional Financial Planning

Life Insurance Policies

Standard Life Insurance Contract Provisions And Options

Annuities

Medical Expense and Disability Insurance

Advanced Topics in Risk Management

Commercial Property Insurance

Commercial Liability Insurance

Bonding,Crime Insurance and Reinsurance

Employee Benefits

Social Security

Unemployment and Workers Compensation Insurance

Filters

Exam 5: Insurance Occupations

What is waiver and estoppel? Why do agents and loss adjusters have to be careful because of waiver and estoppel?

What is the relationship between the underwriter and the actuary? How do they interact?

An insurance broker legally represents the insurance consumer

One duty of the insurance company actuary is to:

An agency contract determines the rights and duties of both the agent and the insurer.

Which of the following pieces of information would be the LEAST useful to a property insurance underwriter?

Direct writing insurance companies typically use independent agents to represent them in the sales process.

In 2004,the attorney general of New York accused insurance brokers of:

What are the steps in the loss adjustment process?

At the present,most insurance sold over the internet is:

What is the difference between an agent and a broker?

Loss adjusters perform all the following functions except:

Which of the following is not a duty of an actuary?

Fergie is a salaried claims adjuster who works exclusively for Mutual of Kentucky Insurance. What kind of claims adjuster is Fergie?

Which of the following is not a duty of the agent?

Brokers generally stand in the same legal position as agents with respect to the power to bind the insurer to a property insurance contract.

Fundamentals and Terminology

Defining the Insurable Event

Risk Management

Financial Services Companies

the Insurance Market: the Economic Problem

Insurance Regulation

Insurance Contracts

Basic Property and Liability Insurance Contracts

Homeowners Insurance

the Personal Auto Policy

Professional Financial Planning

Life Insurance Policies

Standard Life Insurance Contract Provisions And Options

Annuities

Medical Expense and Disability Insurance

Advanced Topics in Risk Management

Commercial Property Insurance

Commercial Liability Insurance

Bonding,Crime Insurance and Reinsurance

Employee Benefits

Social Security

Unemployment and Workers Compensation Insurance

Filters