Test 2

Front 1

A tornado is considered which of the following?

Back 1

Pure Risk

Front 2

The concept that the insured should not profit from an insurance transaction is called:

Back 2

he principle of indemnity

Front 3

Lloyd's of London underwriter is responsible for doing which of the following?

Back 3

Members are individually liable for each risk they assume

Front 4

An agent that enters into agreements with more than one insurer is which of the following?

Back 4

Independent

Front 5

Fraud is an intentional act of all of the following, except:

Back 5

Warranty

Front 6

All of the following are true of a Reciprocal Insurance Company, except:

Back 6

Members are grouped into syndicates

Front 7

Which term describes the relinquishment of a legal right?

Back 7

Waiver

Front 8

Which insurance company department determines the probability of loss and sets the premium rates?

Back 8

Actuarial

Front 9

An alarm system installed in a home is considered which of the following ways to manage risk?

Back 9

Reduction

Front 10

The shifting of risk of loss to a larger homogeneous group is known as which of the following:

Back 10

Risk transfer

Front 11

Which term describes an insurance company that has been organized outside of the United States or its possessions and is admitted to this state?

Back 11

Alien

Front 12

Which of the following powers describes the authority stated in an agent's agency contract?

Back 12

Express

Front 13

ABC Insurance has exceeded its loss expectations and needs which of the following insurers to assume future high risk exposures?

Back 13

Reinsurance

Front 14

All of the following are characteristics of a Mutual Insurance Company, except:

Back 14

Stockholders have ownershipCProfits are returned as divi

Front 15

Which of the following best describes the concept of utmost good faith?

Back 15

Both parties are entitled to rely upon the representations of the other that there is nothing concealed or dishonest