Insurance and Bail Bonds: Understanding Contracts and Regulations, Exams of Law

Download Insurance and Bail Bonds: Understanding Contracts and Regulations and more Exams Law in PDF only on Docsity! Louisiana Bail Bond Exam New 2024 Latest Version Best Study Guide with All Questions from Actual Past Exam and 100% Correct Answers A Domestic insurance company - is a foreign insurer to other states - is a domestic insurer w/i the U.S. - is a foreign insurer only to other countries -must be incorporated in at least 2 states --------- Correct Answer ---------- A domestic insurance co. is incorporated in the state within which it is located. It is a domestic insurer within its specific state - ie it is a foreign insurer to other states. A captive insurance co. exists primarily to underwrite the risks of the - parent owner - shareholders - partners --------- Correct Answer ---------- A captive insurance company exists primarily to underwrite the risks of the parent owner. A domestic insurance company is incorporated in the state within which it is located. NoAgreement that lays the legal framework of insurance business - Partner declaration - Policy Declaration - Insurance agent partnership agreement - Shareholder dividend policy - Meeting minutes --------- Correct Answer ---------- An insurance agent partnership agreement is for laying the legal framework of the insurance business. Its not legally required, although such an agreement in place is usually recommended. Major elements of insurance contract - all applicable: -offer -acceptance -consideration - competent parties -legal purpose --------- Correct Answer ---------- Mjr elements of insurance contract include Agreement (offer n acceptance), consideration, competent parties, legal purpose To void a contract d/t misrepresentd info provided by the insured, the info involved must be -written -oral -material -non-material --------- Correct Answer ---------- A misrepresentation can B oral or written statemnt that is false. To void a contract d/t misrepresentd info provided by the insured, the info involved must B material Impersonation = (most accurate answer) - false pretenses - black mail - fraud - misrepresentation --------- Correct Answer ---------- Impersonation = false pretenses - When a persom assumes the identity of another for committin fraud Material misrepresentation always involves misstatement made __ insurance application - during - after - prior to --------- Correct Answer ---------- Material misrepresentation is a misstatement made during insurance application - the Ins Co wldnt issue the policy had the truth been known Policy cancellation & rescission R the same thing T, F, Depends on intent o the insured Dep on degree of misstatement by the insured --------- Correct Answer ---------- F: Policy cancelatn n resscission r 2 diff things. escission voids policy from outset (Rescisn insurer syas policy was never in effect,usuly under 2 circum : (1) signer of applic had knowledge of a poten l claim & intentionally concealed knowledge (2)application or impt attachment contains info that is materially false - if correct info were provided 2 insurer, insurer wldnt have entered into the contract of insur Suspect granted __release such that no bail $ needs 2 B pd & that no bond needs 2 B posted - own recognizance -self bonding -self bailing -checking in --------- Correct Answer ---------- Criminal suspect may get own recognizance rel. No bail pd & no bond need 2 B posted Suspect is reld p promisin 2 show up in ct for all upcoming proceedings An insurance pol that does not constitut insurable interest is considered - void & illegl - void but still legal - valid but unenfocable --------- Correct Answer ---------- An insur pol that doenot constitute insurable interest is considered void and illegal Adverse selection exists when a risk insured is less likely / more likely than average in experiencing losses --------- Correct Answer ---------- RE: insur underwriting, adverse selection exists when a risk insured is more likely than average in exeriencing losses (insur co extends insur coverge to applicant whose actual risk is substantially higher than the risk known by the insur co - ex life insur to smoker n no know he smokes Insur underwriting is all @ risk: - minimization - selection - transfer - severity --------- Correct Answer ---------- Insur undewritin involves classifying, ratin, and selecting risks. Is all @ risk selection. Goal - use all avail info 2 det whether or not partic applicatn shld be accepted An insur risk class is usually based on a large grp of people w/ similar / different characteristics --------- Correct Answer ---------- An insur risk class is usually based on a lg grp o people w/similar characteristics - Preferd classes usuly represent >avg risk n may deserve lower rates. Rated classes may represent an above avg risk which requires higher premium rates T / F: It is always expected that an underwriter forsees all possible circumstances -------- - Correct Answer ---------- F: Insur underwriting involves classifying, rating and selecting risks, Its about risk selection & assessment - but underwriter cant forsw all possible circumstances T / F: A warranty will never become an actual part of the insurance contract --------- Correct Answer ---------- F: Warranty usuly considered guaranteed 2 B true. Once declared warranty will become part of insur contract. Breach of warranty usuly provides sufficient ground for voiding the contract Insurance underwriting typically involves ___ing risks - classifying - rating - selecting - eliminating --------- Correct Answer ---------- Insur underwriting involves classifying, rating and selecting risks - @ selection/assessment of risk - using all avail info to sdet if an application shld be accepted Presumption of __Principle that shifts burden o proof onto prosecution - Innocence - Motion - Prejudice - Bail --------- Correct Answer ---------- Presumptn of Innocence - foundation o criminal law procedures. Shift burdn o proof on2 prosecution who must prove that 1 committd criminal act Defendant is guarantd rite 2 trial by jury 4 offenses that has a penalty of > _ mos prison (3,4,5,6,7,8,9) --------- Correct Answer ---------- Jury trial is guaranteed if offense has penalty of > 6 mos prision T/F Felony is usu;y severe crime that involves murder --------- Correct Answer ---------- F; Felony usuly more severe crime n will get longer jail time - no has 2B murder. Misdemeanors = lesser crimes pinushd by fine or shorter jail time Bail factors considered at bail hearing - Nature of crime - Character n criminal Hx - Defendants avail financial resources - Gender --------- Correct Answer ---------- After arrest, bail hearing 2 decide if accused allowed 2 post bail. Many Bail factors considered at bail hearing - Nature of crime - Character n criminal Hx - Defendants avail financial resources Bail process starts w/in __hrs after arrest: 48,72, 96, 128 --------- Correct Answer --------- - Bail is a right in the form o surety bond. Bail process usuly starts w/in 48 hrs w/bail bondsman process can be much faster T/F Bail is always in form o aurety bond, required in every single criminal case --------- Correct Answer ---------- F: Bail is a rite in form o surety bond that court holds 2 ensure accused will show @ trial. If J thinks accused is not likely 2 flee, he canB released on his own recognizance w/o bail W/a __bond, defendant no needs 2 pay $ up front but will have 2 pay only if he fails 2 appear - Surety - Posted - Cash - Unsecured - Free will --------- Correct Answer ---------- Unsecured bond - defendant no has 2 pay $ upfront but will have 2 pay only if he fails 2 appear T or F: An arrest must be accopanied by physical restraints or handcuffs --------- Correct Answer ---------- F: An arrest occurs when a person is taken into police custody and is no longer free to leave, w/ or w/o use of physical restraint/handcuffs. Main point of arrest is the exercise of police authority over a person as well as that person's voluntary or involuntary submission Process or procedure that involves the determination of a person's eligibility for release from custody in exchange for the posting of a set amt of money - Booking - Bailing - Bonding - Checking in --------- Correct Answer ---------- After an arrest, there is a need for the processing of the arrested person into police custody. This is known as booking. It involves the determination of the person's eligibility for release from custody in exchange for the posting of a set amount of money, aka bail. T or F: Telling a partial truth is considered as concealment --------- Correct Answer ------- --- T: Concealment is hiding. Telling a partial truth is concealment since partial truth has obviously left something out. According to the doctrine of representations, a statement is considered as invalid even if the applicant honestly thought he was speaking the truth --------- Correct Answer --------- - F: According to the doctrine of representations, a statement is considered as valid when the applicant honestly thought he was telling the truth T or F: When forming an insurance contract, an invitation to treat or to make an offer must come from the insurer --------- Correct Answer ---------- F: When forming an insurance contract, an invitation to treat or to make an offer may come from the insurer or the applicant When coming from the insurer, it may be through an advertising program. Counter-offer is usually not possible in the process of negotiating an insurance contract - True - False - It depends on the item covered - It depends on the policy type --------- Correct Answer ---------- F: A counter-offer is an alternative proposal. It is possible in the process of negotiating an insurance contract With an aleatory contract, a party may receive: - Considerably less in value than what he gives up - Considerably more in value than what he gives up --------- Correct Answer ---------- With an aleatory contract, a party may receive considerably more in value than what he gives up. An insurance contract is of this type because claim proceeds may far exceed the premium paid. aleatory contract-agreement whereby the parties involved do not have to perform a particular action until a specific event occurs;trigger events are those that cannot be controlled by either party, ie natural disasters / death. With a __ contract, only 1 party can draw up the contract in its entirety - Adhesion - Aleatory - Executory - Bilateral - Unilateral --------- Correct Answer ---------- With an adhesion contract, only one party can draw up the contract in its entirety. The receiving party cannot change it. A typical insurance contract is of this type (adhesion -1party has substantially more power than other in setting contract terms ; the offeror must supply customer with standard terms n conditions that R identical 2 those offered 2 others Terms / conditions r non-negotiable, meaning weaker party in the contract must agree w/ contract as rather than requesting clauses be added, removed, or changed = boilerplate or standard contracts. Hello --------- Correct Answer ---------- Aloha With a __ contract, the covenants to the contract may remain partially or completely unfulfilled - Adhesion - Aleatory - Executory - Bilateral - Unilateral --------- Correct Answer ---------- With an executory contract, the covenants to the contract may remain partially or completely unfulfilled bc the insurer will perform its obligation only when losses occur (executed contract is fully legal immediately p all parties have signed, and terms must b fulfilled immedly. Executory contract, terms r set 2 b fulfilled at future date. Both contracts r considered executed agreements once parties sign. both partiesr legally obliged 2 follow terms as / when defined within agreement. Insurance contracts are __ meaning the promise of a party is exchanged for a specific act of another party - Adhesion - Aleatory - Executory - Bilateral - Unilateral --------- Correct Answer ---------- Insurance contracts are unilateral, meaning the promise of a party is exchanged for a specific act of another party. Note that once the insured has paid the premium, only the insurer can be held liable for contract breach T / F All insurance contracts are conditional --------- Correct Answer ---------- T: A condition is a contract provision which serves to limit the rights that are supposed to be provided by the contract. All insurance contracts are conditional Condition __refers to an event that can cancel a right: Condition___ - Precedent - Subsequent - Neutral - Aleatory --------- Correct Answer ---------- "A condition precedent any event/act that happens before a right will be granted. Condition Subsequent an event that can cancel a right A Precedent -situation must arise -before a party has a duty to perform. -Eric agrees to sell Fran one of his playoff seat tickets if the Atlanta Braves make it to the playoffs Subsequent -excuses contractual performance if future/situation arises. -Frank agrees to cut Gina's grass today if it does not rain. If it rains, Frank is relieved from the obligation to cut the grass. & Gina no has to pay Frank." T / F: A breach of warranty can usually provide sufficient ground 4 voiding the contract - -------- Correct Answer ---------- T A warranty is usuly considered guarantd 2 b true Once declared, warr becomes actual pt o insur contract Breach of warr usu suff ground 4 voiding contract T/F Bail schedule almost always covers all offenses --------- Correct Answer ---------- F: Bail schedule has a list o crimes and amt of bail that must B posted 4 those crimes. It does not mean to cover all offenses T/F Court has no statutory obligation 2 notify bondsmen of court schedule --------- Correct Answer ---------- T: Ct has no obligatn 2 notify bondsman of ct schedules - Written notice 2 appear must B produced 2 the bondsman before bond money can B forfeited. T/F Cosigner/guarantor coassumes both criminal liability & financial repsonsibility -------- - Correct Answer ---------- F: Co-signer/guarantor is responsiboe 4 defendant while defendant is out on bail by coassuming financial responsibility Bail bond is __when legal process is finished - Exonerated - Written - off - Demanded - Overridden --------- Correct Answer ---------- Bail bond is exonerated when legal process is finished. Result is irrelevant guilty or innocent. The bail bond is discharged at this point A surety bond is issued by the - Obligor - Obligee - Principal - Bond agent --------- Correct Answer ---------- A surety bond is issued by the obligor to protect obligee against losses resulting from principal's failure to meet the agreed upon obligation. Bail agent = co-obligor Surety Bond definition --------- Correct Answer ---------- Surety bond - bonds to compel bonded party to act in a certain way by holdin 'em financially accountable when they dont. Obligee requires principal to get specific type surety bond worth specific amt. If principal breaks law or violates conditions, obligee may file claim against surety bond for damages. Surety agency that issues and back bond automatically settles all valid claims in full BUT the principal must reimburse surety amt of settlement +int/fees. It's the loan you receive to post bail (Obligee Definition) --------- Correct Answer ---------- (Obligee — a person or organization to whom another party (the "obligor") owes an obligation. In a bonding situation, this is the party that requires and receives the protection of the bond. EX: under a performance bond, the obligee is the project owner for whom the bonded contractor is required to perform the specified work.) (Obligor Definition) --------- Correct Answer ---------- (Obligor — a person or organization that is bound by an obligation to another. In a bonding situation, this party, commonly called the "principal," purchases a bond to protect the party to whom it owes an obligation. For example, under a performance bond, the obligor is the contractor that is required to perform the specified work for the project owner.) T/F Certificate of Surrender must be completed by the court --------- Correct Answer ----- ----- F: Certif of Surrender must be in a form approved by the court. Must be completed by surety company or its bail agent What R reasonable restrictions, conditions, prohibitions placed on defendants activities - Conditions of release - Bail list - Bail specifications - Conditinal release clause - Readmittance to bail - Recommittment --------- Correct Answer ---------- Conditions of release describe the reasonable restrictions, conditions, prohibitions placed on Def's activities by court __An order of the court allows defendant to post new bail following an order of revocation of bail - Conditions of release - Bail list - Bail specifications - Conditinal release clause - Readmittance to bail - Recommittment --------- Correct Answer ---------- Readmittance to bail is an order of the court allows defendant to post new bail following an order of revocation of bail __the return of defendant to the custody of the sheriff following either bail revocation or forfeiture? - Conditions of release - Bail list - Bail specifications - Conditinal release clause - Readmittance to bail - Recommittment --------- Correct Answer ---------- Recommittment is the return of defendant to the custody of the sheriff following either bail revocation or forfeiture __assumes the role of co-obligor - Surety company - Defendant - Court - Sheriff - Principal - Bond agent --------- Correct Answer ---------- A surety bond is issued by obligor to protect the obligee against losses resulting from principal's failure to meet agreed upon obligation. The bail agent is the co-obligor Regarding bail bond, when principal is dishonest and is making false statements, the surety company is - still obligated to the obligee - no longer obligated to the obligee ------ --- Correct Answer ---------- Regarding bail bond, when principal is dishonest and is making false statements, the surety company is still obligated to the obligee A corporation authorized by law to act as a surety should file in the county office a __designating and authorizing the named agent - Hire contract - Surety agreement - Power of attorney - Affidavit --------- Correct Answer ---------- A corporation authorized by law to act as a surety should file in the county office a __designating and authorizing the named agent - Hire contract - Surety agreement - Power of attorney - Affidavit T/F An affidavit alone is usually conclusive as to the sufficiency of the security --------- Correct Answer ---------- F: An affidavit alone may not be conclusive as to the sufficiency of the security.When court taking the bail bond is not fully satisfed as to sufficiency of the security offered, further evidence may be required T/F A surety is supposed to be liable for all reasobanle expenses incurred in returning the accused into the sheriff's custody --------- Correct Answer ---------- T: Surety is supposed to be liable for all reasonable and necessary expenes incurred in returning accused into custody of the sheriff of the county where prosecution is pending When someone retained by bondsman has allegedly used force against the principal to make him surrender, bondsman may be sued OR is free of legal trouble --------- Correct Answer ---------- When someone retained by bondsman has allegedly used force against the principal to make him surrender, use of force may be illegal and bondsman may be sued for civil damages - may also be guilty of assault T/F In La., a corporation but not a partnership may be licensed as an insurance agent or insurance broker --------- Correct Answer ---------- F: In La., a corporation or a partnership may be licensed as an insurance agent or insurance broker In La., when a defendant fails to appear at the fixed initial appearance date, additional preforfeiture notice for that date should be sent to the defendant within how many days: 3,4,6,8,12,24,none of these --------- Correct Answer ---------- None -In La., when a defendant fails to appear at the fixed initial appearance date, no additional preforfeiture notice for that date should be sent to the defendant or the surety In La., no judgement of bond forfeiture shld be enforced until how many days after the expiration of 6 months after the mailing of proper notice of the signing of the judgement of forfeiture? 6,8,10,14,15,30,60 --------- Correct Answer ---------- In La., no judgement of bond forfeiture shld be enforced until 10 days after the expiration of 6 months after the mailing of proper notice of the signing of the judgement of forfeiture T/F In La., out-of-state recovery personnel may make arrest directly --------- Correct Answer ---------- F: In La., licenses are required for bounty hunters and that out-of-state recovery personnel must contract with a bail agent licensed in La. In La., one that seeks to be a resident individual insurance producer for bail bond must 1st participate in a __ month Bail Bond Apprentice Program: 1,3,6,9, none --------- Correct Answer ---------- In La., one that seeks to be a resident individual insurance producer for bail bond must 1st participate in a 3 month Bail Bond Apprentice Program T/F As an alternative to teh Apprentice Program, one may complete teh prelicensing education course to become a resident individual insurance producer for bail bond ------- -- Correct Answer ---------- F: To become a resident individual insurance producer for bail bond must 1st participate in the Bail Bond Apprentice Program, Prior to the end of the apprentice program the apprentice will have to 1st complete the prelicensing education course. MUST be apprentice A person who is already actively licensed as a resident and is adding a new license type, is/is not subject to fingerprinting requirements when applying for a resident insurance producer license for bail bond --------- Correct Answer ---------- An applicant for a resident insurance producer license for bail bond is subject to fingerprinting requirements - but one who is already actively licensed as a resident and is adding a new license type is exempted In La., a bondsman in general can/can't garnish wages --------- Correct Answer ---------- In La., a bondsman in general can garnish wages ONLY with an order from a court requiring the garnishment. T/F In La., a bail bond can NEVER be refunded --------- Correct Answer ---------- F: In La., a bail bond may be refunded ONLY if bondsman is willing to refund it. Whether charges are dismissed does not matter at all Generally, a new charge while out on bond will likely get a bond revoked OR will not affect th bond already posted --------- Correct Answer ---------- Generally, a new charge while out on bond will likely get a bond revoked - a judge can revoke a bond simply for the defendant's failure to abide by the relevant bond conditions T/F A bail bond can be revoked for non-payment --------- Correct Answer ---------- F: A judge can revoke a bond simply for the defendant's failure to abide by teh relevant bond conditions HOWEVER, a bail bond cant B revoked for non-payment. Nonpaymnt is a different contract related lawsuit bt the person and the bond agent terminate ---------- Correct Answer ---------- to cancel uniform application ---------- Correct Answer ---------- the current version of the NAIC Uniform Application for resident and nonresident agent licensing uniform business entity application ---------- Correct Answer ---------- the current version of the naic uniform business entity application for residents and non resident business entities. Controlled Business ---------- Correct Answer ---------- insurance covering himself or members of his immediate family, or a corporation, association, or partnership, of which he or a member of his immediate family is an officer, director, substantial stockholder, partner, associate, or employee. assumed names ---------- Correct Answer ---------- An insurance producer doing business under any name other than the producer's legal name shall notify the Commissioner before using the assumed name. who can be issued temporary licensing ---------- Correct Answer ---------- surviving spouse or next of kin, a member or employee of a business entity how many days can someone be temporarily licensed without an exam ---------- Correct Answer ---------- 180 appointment ---------- Correct Answer ---------- appointed by the insurance before being issued QPA's commissioner ---------- Correct Answer ---------- Commissioner of Insurance Insured ---------- Correct Answer ---------- party named on a policy or certificate as the individual with legal rights to the benefits provided by such policy. Defendant person ---------- Correct Answer ---------- natural or artificial entity, including but not limited to individuals, partnerships, associations, trusts, or corporations policy or certificate ---------- Correct Answer ---------- appearance bond Producer ---------- Correct Answer ---------- agent power of the commissioner of insurance ---------- Correct Answer ---------- to examine and investigate into the affairs of every person engaged in the business of insurance Actual Authority ---------- Correct Answer ---------- Authority expressly given to an agent by contract and/or by power of attorney Apparent Authority ---------- Correct Answer ---------- the authority which the public may reasonable believe an agent has Express Authority ---------- Correct Answer ---------- that which is expressly written in the agent/agency contract. same as actual authority Implied Authority ---------- Correct Answer ---------- authority given to the agent as a result of the principals conduct, such as the principals earlier acquiescence to the agent's actions. what is a criminal defendants bond? ---------- Correct Answer ---------- a contract Valid Contract ---------- Correct Answer ---------- a contract that can be enforced by either party. Void Contract ---------- Correct Answer ---------- a contract that cannot be enforced in court of law by either party Voidable Contract ---------- Correct Answer ---------- one party has the option of enforcing or voiding the contract actions that make a contract unenforceable ---------- Correct Answer ---------- fraud, misrepresentation, concealment, false swearing, waiver Fraud in the Execution ---------- Correct Answer ---------- one of the parties signs one contract but believes he is signing another. the contract is void fraud in the inducement ---------- Correct Answer ---------- false statements 5 elements of fraud ---------- Correct Answer ---------- 1. false statement must be made 2. the party who makes the statement must know it is untrue 3. he must intend that the other party will believe the falsehood 4. the other party must accept as the truth 5. the other party must be damaged as a result Misrepresentation ---------- Correct Answer ---------- stating an untrue fact Concealment ---------- Correct Answer ---------- intentionally withholding facts false swearing ---------- Correct Answer ---------- a lie under oath agreement ---------- Correct Answer ---------- meeting of the minds Offer and Acceptance ---------- Correct Answer ---------- One party must make an offer and the other party must accept the offer Consideration ---------- Correct Answer ---------- something of value exchanged for something else of value. money Competent Parties ---------- Correct Answer ---------- Those entering into the contract must be of legal age and must be mentally competent Legality of Object ---------- Correct Answer ---------- contract must be for a legal purpose breach of contract ---------- Correct Answer ---------- one party's failure to perform some act, which he has contractually agreed to do. Bilateral Contract ---------- Correct Answer ---------- a contract in which both parties have promised to perform executory contract ---------- Correct Answer ---------- A contract that has not yet been fully performed. Express Contract ---------- Correct Answer ---------- a contract created by the explicit language of the parties Formal Contract ---------- Correct Answer ---------- a contract made binding by the observance of required formalities regardless of the giving of consideration; a contract under seal. special contract Implied Contract ---------- Correct Answer ---------- a contract that the court infers to exist from the words and conduct of the parties informal contract (simple contract) ---------- Correct Answer ---------- contract that is not formal. not under seal Unilateral Contract ---------- Correct Answer ---------- a contract in which only one part is obligated to perform jurisdiction and powers of court ---------- Correct Answer ---------- courts have the jurisdiction and powers over criminal proceedings inherent powers and authority of courts ---------- Correct Answer ---------- The court possesses inherently all powers necessary for the exercise of its jurisdiction in the enforcement of its lawful orders Special sessions of court ---------- Correct Answer ---------- A court may call a special criminal session at any time contempt of court ---------- Correct Answer ---------- action that hinders the administration of justice