U.S. Insurance Brokers Exam Mock Questions
Life. Jurisprudence Test Questions (XNUMX)
What is the “Express power” given to an agent in an agency agreement?
"Express power" gives brokers the ability to represent insurance companies.
Restore an insured to the same condition as before a loss is an example of the principle of ____ ?Indemnity
Indemnity, the principle of compensation, restores the insured to the same conditions as before the loss.
When deliberate concealment is committed by the insured, the insurer is entitled to
If the insured deliberately conceals some facts, the insurance company has the right to cancel the contract (Rescind the contract).
When handling premiums for an insured, an agent is acting in which capacity?
When helping policyholders handle premiums, agent brokers perform "fiduciary" capacity.
To describe a contract of indemnity, Which is true?
Indemnity, the principle of compensation, restores the insured to the same conditions as before the loss.
Which of the following is NOT required in the content of a policy?
The insurance policy contract needs to record the parties participating in the insurance, the coverage period of the policy, and the risk objects protected. What does not need to be recorded is the probability of loss (Probability of loss)
If a material warranty violation on the part of the insured is found, what recourse does an insurer have?
If the policyholder is found to have actual violations, the insurance company can revoke the policy (Rescind the policy)
A contract requires
A contract theory needs to contain the specific content of the contract terms and the acceptance of the contract terms (An offer and acceptance of the contract terms)
Reasonably necessary acts that an agent must perform for carrying out his/her expressly authorized duties are covered by an agent’s
Implied authority is a permission that is not expressly granted and is not written in writing, but the insurance brokerage agent is considered to have the permission to conduct business on behalf of the insurance company.
The importance of a representation is demonstrated in what rule?
The materiality of concealment is a rule used to determine the importance of false statements.
Which of the following is NOT a requirement of a contract?
In the contract, the clause "Equal consideration is required between the parties involved" is not required.
A unilateral contract is one in which
Unilateral Contract, a unilateral contract is defined as a contract in which only one party expresses his will. Insurance contracts are unilateral. This means that only one party (the insurance company) makes any form of enforceable commitment.
Which principle is accurately described with the statement "Insureds are entitled to recover an amount NOT greater than the amount of their loss"?
Indemnity, the principle of compensation, restores the insured to the same conditions as before the loss, and will not exceed the previous conditions.
Which of the following statements about aleatory contracts is NOT true?
Aleatory Contract means that the price paid by one of the parties to the contract is only an opportunity. For the insured, he may obtain benefits far greater than the insurance premiums paid, but there may also be no benefits to be obtained. ; For the insurer, the insurance payment he pays may be much greater than the insurance premium he collects, but he may also only charge the insurance premium without assuming the responsibility of paying the insurance premium.The nature of the insurance contract is determined by the accidental nature of the insured accident, that is, the occurrence of the risk covered by the insurer or the conditions for the payment of insurance money agreed in the insurance contract are uncertain.Example: A person who purchases disability insurance will be paid when he is injured. If the injury does not happen by accident, it will not be paid.
Which of the following contracts is defined as “one that restores an injured party to the condition that was present before the loss”?
Indemnity contract, indemnity contract, is a contract that restores the insured to the same conditions as before the loss, and will not exceed the previous conditions.
What does the insurance term "indemnity" refer to?
Indemnity, compensation, restores the insured to the same conditions as before the loss, that is, Make Whole.
Which statement is CORRECT when describing a contract of adhesion?
Adhesion contract is also called a contract of attachment, a contract of attachment, or a contract that is subject to your discretion.Therefore, the insured can accept or reject the content of the contract.
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