General Insurance Questions

Question 1

Risk in insurance terminology refers to the…

Answer 1

Uncertainty of financial loss

Question 2

Events or conditions that increase the likelihood of a

loss occurring are referred to as

Answer 2

Hazards

Question 3

Mutual companies are owned by the

Answer 3

Policy owners

Question 4

What type of risk allows both gains and losses

Answer 4

Speculative

Question 5

To be insurable, a risk must not be

Answer 5

Catastrophic

Question 6

A mutual insurer is also referred to as a

Answer 6

Participating company

Question 7

ABC Insurance company is incorporated in Georgia but is doing business in Washington; it is a/an

Answer 7

Foreign Insurer

Question 8

A producer’s actions or deeds show what kind of authority?

Answer 8

Apparent

Question 9

Which of the following is an example of a producers fiduciary responsibilities?

Answer 9

A producer promptly forwarding premiums to the insurance company

Question 10

A person buying life insurance is demonstrating which method of handling risk

Answer 10

Transferring