Chapter 8

Question 1

Forceful act or threat aimed to influence one to act against their wil

Exempt
Coercion
Insolvent

Answer 1

Coercion

Question 2

Payment to agent by ins company for placing ins usually percentage of policy premium

Coercion
Commission
exempt

Answer 2

Commission

Question 3

Not subject to obligation
Exempt
Statute
Coercion

Answer 3

Exempt

Question 4

Attempts to influence other party

Inducement
Insolvent
Statute

Answer 4

Inducement

Question 5

Unable to meet financial obligations

Statute
Insolvent
coercion

Answer 5

Insolvent

Question 6

Restoration to original condition or repayment

Restitution
Statute
Coercion

Answer 6

Restitution

Question 7

Formal written law enacted by leg

Answer 7

Statute

Question 8

All considered ins transaction except

Soliciting a policy

Advising a policyholder regarding a claim
Negotiating coverage
Obtaining a license

Answer 8

Obtaining a license

Question 9

When transacting business in this state an insurer formed under laws of another country is known as an

Admitted insurer
Alien insurer
Domestic insurer

Answer 9

Alien insurer

Question 10

An ins company is domiciled in Montana and transacts ins in Wyoming. Which term best describes insurer’s classification in Wyoming

Foreign
Alien
Domestic
Unauthorized

Answer 10

Foreign

Question 11

Best describes an ins company that has been formed under the laws of this state

Admitted
Domestic
Sovereign
Local

Answer 11

Domestic

Question 12

Insurer=

Answer 12

Principal

Question 13

When doing biz in this state an ins company formed under the laws of another state is known as

Foreign
Domestic
Alien
Non admitted

Answer 13

Foreign

Question 14

in this state/formed another state

Answer 14

Foreign

Question 15

Transacting biz in this state formed another country

Answer 15

Alien

Question 16

Insurer must obtain this in order to transact ins within given state

Insurer’s license
Certificate of authority
Producer’s certificate
Biz entity license

Answer 16

Certificate of authority

Question 17

Foreign insurer

Answer 17

Another state

Question 18

Got ins policy 5 years ago; last year recd dividend check from ins company that wasnt taxable; this year insurer did not send a check. From what type of insurer did the insured purchase the policy

Stock
Mutual
Reciprocal

Answer 18

Mutual

Question 19

Funds not paid out after paying claims and other operating costs are returned to the policy owners in form of a dividend; if all funds are paid out no dividends are paid

Stock
Mutual
Reciprocal

Answer 19

Mutual

Question 20

Which of following is owned by stockholders
Mutual
Stock
Fraternal

Answer 20

Stock

Question 21

Policy owners do not share in profits or losses

Answer 21

Nonparticipating policies