AD Banker Retention Questions Ch. 1

A _____ insurance company is owned by its policy holders.

Ch. 1

• Reciprocal

• Stock

• Mutual

• Fraternal Benefits Society

If an insurance company wants to transfer all or part of the risk it has accepted, it would buy which of the following types of insurance?

Ch. 1

• Residual

• Reinsurance

• Reciprocal

• Insurer

Which of the following is an insurance company that is organized under the laws of another state within the US?

Ch. 1

• Domestic

• Alien

• Foreign

• Authorized

Which insurance company department accepts the insurance risk?

Ch. 1

• Executive

• Actuarial

• Claims

• Underwriting

Which of the following individuals represents the insurance company when selling an insurance policy?

Ch. 1

• Producer

• Broker

• Adjuster

• Insurer

Which of the following type of authority does the public assume an agent has when quoting insurance?

Ch. 1

• Authorized

• Express

• Implied

• Apparent

A producer has each of the following responsibilities to the insurer, EXCEPT:

Ch. 1

• A fiduciary duty

• Forwarding premiums to the insurer on a timely basis

• Reporting material facts that may affect underwriting

• A duty recommend only high premium policies

A federal regulation called the _____ protects consumer privacy.

Ch. 1

• Consolidated Omnibus Budget Reconciliation Act

• Fraudulent Insurance Act

• Privacy Protection Act

• Fair Credit Reporting Act

Dishonest tendencies that increase the probability of loss are what type of hazard?

Ch. 1

• Physical

• Moral

• Emotional

• Legal

Each of the following must be included in an insurance risk, EXCEPT:

Ch. 1

• Calculable chance of loss

• Excluded catastrophic perils

• Large group with dissimilar members

• Accidental losses