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WorksheetsCh. 5: Fl. Statutes, Rules and Regulations Common to All Lines
Total questions: 10
Worksheet time: 5mins
Which of the following is an agreement between an insured and an insurer, where the insurer agrees to indemnify the insured for specific losses in exchange for a premium?
Reciprocity
The indemnity clause
The insurance contract
The insurance guaranty
The requirement that agents not commingle insurance monies with their own funds is known as
Premium accountability.
Express authority.
Accepted accounting principal.
Fiduciary responsibility.
Two individuals are in the same risk and age class; yet, they are charged different rates for their insurance policies due to an insignificant factor. What is this called?
Adverse selection
Discrimination
Law of large numbers
Misrepresentation
What method do insurers use to protect themselves against catastrophic losses?
Indemnity
Pro rata liability
Risk management
Reinsurance
Which of the following authorities grants and revokes licenses?
Federal Insurance Bureau
National Association of Insurance Commissioners (NAIC)
Guaranty Association
Department of Financial Services
An insured submits a proof of loss form within 10 days of a loss. The insurer, however, does not acknowledge the form for 3 months. Which of the following violations has the insurer committed?
Inappropriate delay
Dragging
Unfair claims settlement
Rebating
On its advertisement, a company claims that it has funds in its possession that are, in fact, not available for the payment of losses or claims. The company is guilty of
Rebating.
Misrepresentation.
Concealment.
Unfair claim practice.
Insurance contracts are agreements between which two parties?
Producers and consumers
Insurer and insured
Producer and insurer
Attorneys for any parties involved in any contract
Which of the following is an example of a producer being involved in an unfair trade practice of rebating?
Inducing the insured to drop a policy in favor of another one when it’s not in the insured’s best interest
Charging a client a higher premium for the same policy as another client in the same insuring class
Making deceptive statements about a competitor
Telling a client that his first premium will be waived if he purchased the insurance policy today
When applying for an individual life insurance policy, an applicant states that he went to the doctor for nausea, but fails to mention that he was also having severe chest pains. This is an example of
Concealment.
Misrepresentation.
Fraud.
Warranty.
