Download Insurance Exam Questions and Answers and more Exams Radiation Quantities and Units in PDF only on Docsity! Unit 1 Checkpoint Exam Questions and Answers (Latest Update 2023-2024) RATED A+ A fiduciary is A) another name for commingling B) a beneficiary C) an accounts for funds D) a person in a position of financial trust - Correct Answer ✅D At the state level, the government is involved in providing A) war risk insurance B) unemployment insurance C) flood insurance D) federal crop insurance - Correct Answer ✅B In an insurance contract, the second party is A) the insurer B) the insured C) the beneficiary D) the underwriter - Correct Answer ✅A ABC Insurance is incorporated in Wisconsin, but is doing business in Florida. While in Florida, ABC Insurance is classified as P a g e 1 | 6 A) a domestic insurer B) a nonresident insurer C) an alien insurer D) a foreign insurer - Correct Answer ✅D All of the following statements regarding surplus lines insurers are correct EXCEPT A) surplus lines insurance covers high-risk exposures B) surplus lines insurance is placed with an admitted carrier by a surplus lines agent C) states keep a list of acceptable surplus lines insurers D) surplus lines insurance is placed with a nonadmitted carrier by a surplus lines agent - Correct Answer ✅B ABC Insurance is licensed to sell insurance in Wisconsin. When a company is licensed in a state, it is considered A) approved B) unauthorized C) admitted D) nonadmitted - Correct Answer ✅C Josephine sells insurance for one company and is an independent contractor, NOT an employee of the insurer. She is P a g e 2 | 6 B) direct response marketing C) producer marketing D) agent marketing - Correct Answer ✅B Which of the following levels of agent authority is a written agreement with the insurer? A) express authority B) assumed authority C) implied authority D) apparent authority - Correct Answer ✅A All of the following statements regarding mutual insurers are correct EXCEPT A) mutual insurers pay dividends to policyholders B) mutual insurers have stock and stockholders C) mutual insurers do not guarantee dividends D) mutual insurers are owned by their policyholders - Correct Answer ✅B All of the following are elements of insurable risks EXCEPT A) the risk must be catastrophic for the insurance company B) the premium should be affordable C) the risk must be noncatastrophic D) the premium must be calculable - Correct Answer ✅A P a g e 5 | 6 According to the law of agency, the person on whose behalf the insurance agent is called up to act is called A) the principal B) the insured C) the agent D) the underwriter - Correct Answer ✅A Insurance is a contract that A) eliminates all hazards for an individual B) eliminates all risk an individual C) transfers the risk of financial loss from an insurance company to an individual or business D) transfers the risk of financial loss from an individual or business to an insurance company - Correct Answer ✅D P a g e 6 | 6
