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15 Cards in this Set
- Front
- Back
A tornado is considered which of the following?
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Pure Risk
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The concept that the insured should not profit from an insurance transaction is called:
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he principle of indemnity
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Lloyd's of London underwriter is responsible for doing which of the following?
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Members are individually liable for each risk they assume
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An agent that enters into agreements with more than one insurer is which of the following?
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Independent
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Fraud is an intentional act of all of the following, except:
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Warranty
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All of the following are true of a Reciprocal Insurance Company, except:
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Members are grouped into syndicates
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Which term describes the relinquishment of a legal right?
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Waiver
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Which insurance company department determines the probability of loss and sets the premium rates?
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Actuarial
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An alarm system installed in a home is considered which of the following ways to manage risk?
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Reduction
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The shifting of risk of loss to a larger homogeneous group is known as which of the following:
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Risk transfer
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Which term describes an insurance company that has been organized outside of the United States or its possessions and is admitted to this state?
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Alien
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Which of the following powers describes the authority stated in an agent's agency contract?
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Express
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ABC Insurance has exceeded its loss expectations and needs which of the following insurers to assume future high risk exposures?
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Reinsurance
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All of the following are characteristics of a Mutual Insurance Company, except:
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Stockholders have ownershipCProfits are returned as divi
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Which of the following best describes the concept of utmost good faith?
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Both parties are entitled to rely upon the representations of the other that there is nothing concealed or dishonest
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