Chapter 1 Test Questions

Front 1

What prevents an insurance company from denying a fact because of a previous action?

Back 1

Estopple

Front 2

Is a type of rate which uses a modification to class rates lowered for positive factors or raised for negative factors?

Back 2

Merit Rate

Front 3

What is not an element of negligence

Back 3

Intervening Cause

Front 4

What does Res Ipsa Loquitor mean?

Back 4

The act speaks for itself

Front 5

What is the concept that a policy applies separately to each insured listed

Back 5

Severability

Front 6

What is "losses are paid within 30 days after the insurer receives insured's proof of loss"?

Back 6

Loss Payment

Front 7

What type of insurance coverage is used for strict liability

Back 7

Railroad Protection

Front 8

Which of the following is excluded as money in a crime policy

Back 8

Checks

Front 9

An insurance agent is what?

Back 9

An individual who has the authority to sell insurance and countersign insurance contracts for an insurer

Front 10

A solicitor is what?

Back 10

An individual who has the authority to sell insurance for an insurer, but cannot countersign insurance contracts for that insurer

Front 11

A broker is what?

Back 11

An individual who does not represent an insurer, but instead works with a client to find an insurer that will provide an insurance policy that meets the client’s needs

Front 12

Fair Credit Reporting Act

Back 12

Notify a consumer that the insurer has requested a regular consumer report about the consumer within three days of the date that the report is requested

Front 13

What is a peril?

Back 13

An event that causes an individual and/or an organization to lose a resource

Front 14

Fee for a company to appoint it to represent it is

Back 14

$15

Front 15

Agent's license

Back 15

renews biennially on or before the last day of the agents birth month

Front 16

Revocation

Back 16

permanent termination of all authority to hold any license as an agent in a state

Front 17

A cease and desist order is communicated by

___________________ from the department of insurance

Back 17

Certified Letter

Front 18

The maximum amount civil fine the superintend can fine is

Back 18

$25,000

Front 19

Who pays the cost of examination of an insurance company

Back 19

the company being examined

Front 20

The inability of a company to pay its obligations when due is known as

Back 20

Insolvency

Front 21

The maximum amount a company may pay to an unlicensed agent?

Back 21

$0

Front 22

An agent who issues estimates or illustrations that are false or misleading is guilty of

Back 22

Misrepresentation

Front 23

An agent who circulates false or misleading information for the purpose of inducing a prospect to lapse or cancel an existing policy

Back 23

Twisting

Front 24

The Intra Family Liability Exclusion PROHIBITS

Back 24

liability insurance coverage for the owner or operator of a motor vehicle against a claim injury or death suffered by a family member of that owner operator

Front 25

As part of the requirement for applying to the Ohio FAIR Plan Basic Property Coverage

Back 25

Owner must certify that 2 ohio property insurers declined to offer the property owner coverage

Front 26

An agent failing to renew a license by the required date may

Back 26

submit late renewal application prior to the first day of the second month following the license renewal date

Front 27

The Ohio Valued Policy law states that

Back 27

The policy limit is paid for a total loss in the absence of fraud

Front 28

Ohio motorists who cannot procure auto insurance through ordinary methods may be able to secure coverage through the

Back 28

Ohio Assigned Risk Plan

Front 29

Third and subsequent violations of Ohio Proof of Financial Responsibility Law fee is

Back 29

$100 first offense

$300 second offense
$600 third offense

Front 30

Refusing to utilize the insurers premium finance affiliate

Back 30

Is not a legitimate reason to cancel a policy

Front 31

According to Ohio law automobile laws must be guaranteed renewable for periods totaling no less than

Back 31

1 year (12 months)

Front 32

An agent must notify the superintendent of

insurance within

Back 32

30 days of the final disposition of the administrative action against the agent

Front 33

Each insurance company shall certify to the

Superintendent before ________________

Back 33

June 30th of each year

with name and address of the agents

Front 34

_______________ revised the number of CEC's to 24

Back 34

House Bill 300

Front 35

A suspension of an agent is only

Back 35

Temporary

Front 36

Any actual prosecution of an accused Ohio insurance agent shall be preformed through

Back 36

The office of the Ohio Attorney General

Front 37

Minimum Split auto liability limit is

Back 37

25/50/25

Front 38

Combined single limit is

Back 38

$75,000

Front 39

Once a policy has been in force for _________ days your renewal is protected for 2 years

Back 39

90 days

Front 40

An act has to cause at least ____________ in damages in order to be considered a "certified" act of terrorism

Back 40

$5,000,000