FP II 1.03/04

Which is an example of altering an insurance application?

• an agent changing the type of coverage on a policy

• an agent lying to a client about the amount of dividends

• an agent advising a client that an auto policy will cover liability when it only covers collision

• an agent telling a customer that he/she represents several companies when he/she only represents one

Which is true about a captive agent relationship?

• A captive agent owns all clients that he/she services

• The captive agent is guided by dual agency guidelines.

• The insurer owns and maintains control of all accounts serviced by the captive agent.

• A captive agent has the right to rewrite the insured if he/she terminates his/her relationship with the insurer.

If a car in the driveway of a home gets broken into and a laptop is stolen, what type of insurance coverage will pay for the laptop?

• reinsurance

• auto insurance

• excess insurance

• property insurance

A captive agent has the right to rewrite the insured if he/she terminates his/her relationship with the insurer.

• changing the type of coverage on a policy

• adding extra zeroes to the amount of coverage

• advising a client that an auto policy will cover liability when it only covers collision

• failing to be in full compliance with state regulations regarding licensing requirements

A provision in an insurance policy that eliminates coverage for some types of risks is called a/an:

• adjustment

• excess

• exclusion

• standard

Insurance that an insurance company purchases from another insurance company to protect itself from the risk of a major claims event is called:

• reinsurance

• excess insurance

• standard insurance

• exclusion insurance

Anna is an insurance agent who is working with Tracy, the sole proprietor of a small dental practice, to determine the type of liability insurance she needs. Anna suggests that Tracy needs to purchase insurance that will cover her legal expenses in the event a patient sues her for negligence. What type of liability insurance is Anna advising Tracy to purchase?

• workers compensation

• commercial

• malpractice

• healthcare

Which statement is true about health maintenance organizations (HMOs)?

• HMO member fees vary annually and are based on the frequency of visits to physicians.

• HMO's provide comprehensive health services but often restrict the insured's chocie of physicians

• To control costs, HMOs cover doctor visits but require members to pay for X-ray and laboratory services.

• Because HMOs emphasize preventative care to members, they do not impose co-payment policies on patient visits to the doctor.

In addition to basic homeowner's insurance coverage, insurance agents whose clients live in flood or earthquake zones might suggest that they purchase:

• optional perils endorsements

• assisted living coverage

• rental unit coverage

• limited term riders

Recently, Joseph signed a lease for a new car. Unfortunately, Joseph was involved in an automobile accident, and the car was totaled. Because Joseph's insurance company paid out less than the payoff amount of the lease, Joseph still owes the leasing company several thousand dollars for the car. What type of insurance would have covered Joseph from this type of loss?

• gap

• adaptable

• comprehensive

• uninsured motorist