More Unknown

Question 1

A plan in which an employer pays insurance benefits from a fund derived from the employer’s current revenues is called

Answer 1

A self-funded plan

Question 2

Fraternal Benefit Society has each of the following characteristics EXCEPT
A) incorporated
B) without capital stock
C) exist for profit
D) exist for the benefit of its members

Answer 2

C) exist for profit

Question 3

The Do Not Call Registry offers exemptions for calls placed from all of the following EXCEPT
A) charities
B) political organizations
C) insurance sales calls
D) surveys

Answer 3

C) insurance sales calls

Question 4

Which of the following is considered to be an event or condition that increases the probability of an insured’s loss?
A) risk
B) hazard
C) indemnity
D) peril

Answer 4

B) hazard

Question 5

What is known as the immediate specific event causing loss and giving rise to risk?

Answer 5

Peril

Question 6

The term which describes the fact that both parties of a contract may not receive the same value is referred to as

Answer 6

Aleatory

Question 7

A professional liability for which producers can be sued for mistakes of putting a policy into effect is called

Answer 7

Errors and omissions

Question 8

Which of the following is an example of the insured’s consideration?
A) insured’s promise to pay benefits
B) a paid premium
C) legal purpose
D) intent

Answer 8

B) a paid premium

Question 9

Who is responsible for assembling the policy forms for insureds?

Answer 9

Insurance carriers

Question 10

Which contract element is insurable interest a component of?

Answer 10

Legal purpose

Question 11

What makes an insurance policy a unilateral contract?

Answer 11

Only the insurer is legally bound