Pre-licensing Course Review Exam

Question 1

Insurance is best described as

a. the law of Large Numbers
b. the transfer of risk
c. offer and acceptance
d. pure risk

Answer 1

b. the transfer of risk

Question 2

A basic rule in insurance is that in order to purchase insurance, you must have a chance of financial loss or a financial interest in the property. This is known as:

a. the principle of indemnity
b. a cause of loss
c. insurable interest
d. a moral hazard

Answer 2

c. insurable interest

Question 3

Which of the following is not an element of a contract?

a. it must be for a legal purpose
b. it must be signed by the parties to the contract
c. there must be a consideration
d. the contract must be between people who are considered competent under the law

Answer 3

b. it must be signed by the parties to the contract

Question 4

Which of the following forms can be written to cover the contents, improvements and betterments, loss assessment, and liability coverage exposures of a condominium unit-owner?

a. HO-6
b. HO-4
c. HO-8
d. HO-3

Answer 4

a. HO-6

Question 5

John has to move into a motel when his house burns, this type of loss is known as:

a. a direct loss
b. non-accidental loss
c. a catastrophic loss
d. an indirect loss

Answer 5

d. an indirect loss

Question 6

An incorporated insurance company which is run by a board of directors is known as:

a. a mutual company
b. a reciprocal company
c. a capital-stock company
d. a fraternal organization

Answer 6

c. a capital-stock company

Question 7

Which of the following scenarios represents a moral hazard?

a. Jill sinks her car in a gravel pit to collect the insurance
b. Ben lives next door to a dynamite factory
c. Connie drivers 120 per hour because “she’s covered”
d. all of the above are moral hazards

Answer 7

a. Jill sinks her car in a gravel pit to collect the insurance

Question 8

Insurance company people who make the decision whether to accept or reject an application sent in by an agent based on the insurance company standards and their own judgement are known as:

a. brokers
b. underwriters
c. coders
d. producers

Answer 8

b. underwriters

Question 9

The insurance an insurance company purchases to protect the company against catastrophic losses is known as:

a. investment coverage
b. audit coverage
c. recall insurance
d. reinsurance

Answer 9

d. reinsurance

Question 10

Agents have the responsibility for the money and financial affairs of others. This is a:

a. fiduciary responsibility
b. rebate
c. fair trade practice
d. good investment opportunity

Answer 10

a. fiduciary responsibility

Question 11

Which of the following statements is true regarding a binder?

a. a binder guarantees that a policy will be issued by an insurance company
b. a binder guarantees coverage and that a policy will be issued
c. a binder does not guarantee that a policy will be issued; it only guarantees temporary coverage
d. a binder does not afford any coverage, it is merely a snapshot of the coverage in effect at the time it is issued

Answer 11

c. a binder does not guarantee that a policy will be issued; it only guarantees temporary coverage

Question 12

The department in an insurance company responsible for seeing that the insurance company’s customers are properly indemnified for their losses is known as the

a. policy issue and administration department
b. claims department
c. underwriting department
d. actuarial department

Answer 12

b. claims department

Question 13

Liability imposed by law when someone is involved in an inherently dangerous activity or condition is known as

a. absolute liability
b. a wrongful death statute
c. vicarious liability
d. gross negligence

Answer 13

a. absolute liability

Question 14

Which of the following elements of a contract does the premium represent?

a. offer and acceptance
b. competent parties
c. valid consideration
d. legal purpose

Answer 14

c. valid consideration

Question 15

Contracts written for a specified amount as agreed to by both the insured and insurer at policy inception are known as:

a. unilateral contracts
b. valued or stated value contracts
c. aleatory contracts
d. contracts of adhesion

Answer 15

b. valued or stated value contracts

Question 16

Tom presents three claims to his insurance company for damage to his automobile which never occurred. This is best described as:

a. misrepresentation
b. fraud
c. estoppel
d. concealment

Answer 16

b. fraud

Question 17

All of the following must be present to establish negligence except:

a. duty owed and breach of that duty
b. a proximate cause of loss
c. damages must exist
d. hazardous operations are involved

Answer 17

d. hazardous operations are involved

Question 18

The failure to use the proper care that is required to protect others from an unreasonable chance of harm is

a. an intentional tort
b. trespassing
c. negligence
d. personal injury damages

Answer 18

c. negligence

Question 19

Payments made by an insurance policy in addition to the policy limits are called

a. supplementary payments
b. reasonable payments
c. aggregate limits
d. per occurrence limits

Answer 19

a. supplementary payments

Question 20

The clause of an insurance contract that provides for equitable handling of loss settlement disputes is the

a. lawsuit clause
b. appraisal or arbitration clause
c. salvage and abandonment clause
d. loss settlement condition

Answer 20

b. appraisal or arbitration clause

Question 21

Liability Insurance provides no protection for the insured against liability for:

a. intentional acts
b. negligence
c. civil wrongs
d. unintentional acts

Answer 21

a. intentional acts

Question 22

Which of the following parts of an insurance contract detail the duties and responsibilities of the insurance company and the insured?

a. declarations
b. conditions
c. definitions
d. exclusions

Answer 22

b. conditions

Question 23

The portion of the premium due the insurance company for coverage afforded under the insurance contract is the:

a. unearned premium
b. return premium
c. earned premium
d. pro rata premium

Answer 23

c. earned premium

Question 24

Coverage C under the dwelling policy

a. will pay for losses to a detached garage
b. will provide worldwide coverage up to 10% of the Coverage C amount
c. pays up to 10% of the Coverage A limit for loss of rental value
d. pays for the expense of removing debris resulting form a covered property loss

Answer 24

b. will provide worldwide coverage up to 10% of the Coverage C amount

Question 25

Which of the following forms provide the best protection for building and contents under the homeowners contract?

a. HO-6
b. HO-3
c. HO-4
d. HO-1

Answer 25

b. HO-3

Question 26

The coverage provided only by the DP-2 and DP-3 dwelling fire forms is:

a. extended coverage
b. additional living expense
c. fair rental value
d. accidental death of the owner

Answer 26

b. additional living expense

Question 27

Which term below best describes a situation where an insurance company continues a policy in force until it’s expiration date but not beyond the expiration date?

a. short rate cancellation
b. pro rata cancellation
c. non-renewal
d. cancellation for cause

Answer 27

c. non-renewal

Question 28

One a homeowners policy, medical payments would be afforded to which of the following:

a. all residents who are related to the named insured
b. the person named in the Declarations page
c. an unrelated minor being cared for by the named insured’s family
d. a visiting relative

Answer 28

d. a visiting relative

Question 29

Which of the following homeowners forms provides the best protection for your client’s home and personal property?

a. HO-1
b. HO-4
c. HO-3
d. HO-5

Answer 29

d. HO-5

Question 30

A homeowners Form HO-3 policy written with $80,000 coverage A limit would provide contents insurance in the amount of:

a. $24,000
b. $32,000
c. $40,000
d. $48,000

Answer 30

c. $40,000

Question 31

Unless otherwise stated, the standard “insurance-to-value” percentage in the homeowners policy is:

a. 100%
b. 90%
c. 80%
d. none of the above

Answer 31

c. 80%

Question 32

The additional coverage of collapse is included in all of the following homeowners forms except:

a. HO-8
b. HO-5
c. HO-6
d. HO-3

Answer 32

a. HO-8

Question 33

Medical payments to Others is also known as:

a. named insured’s medical coverage
b. resident hospitalization coverage
c. guest medical
d. blue cross/blue shield protection

Answer 33

c. guest medical

Question 34

Your condominium association assesses your client $5,000 for fire damage to the association’s laundry building which was not covered by the association property policy. Your client’s unendorsed homeowner policy will pay

a. $5,000 because the insured is legally liable for the damage
b. $1,000 because this is the maximum amount available without endorsement
c. nothing since this is not a covered loss under the insured’s policy
d. $2,500 as you are only liable for 50% of the damage to association property

Answer 34

b. $1,000 because this is the maximum amount available without endorsement

Question 35

Which of the following would be an indirect or consequential loss paid under a homeowners policy?

a. the cost of a hotel room after an insured loss to the home
b. the cost to board a family pet after a windstorm loss to their home
c. the increased cost of food because the insured has to eat out when their kitchen is destroyed by a fire
d. all of the above

Answer 35

d. all of the above

Question 36

The dwelling fire form which affords coverage for only the perils of fire, lightning, and internal explosion is the

a. DP-2
b. DP-1
c. DP-3
d. None of the above

Answer 36

b. DP-1 basic form

Question 37

An insured has a Personal Auto Policy with split limits liability coverage of 25/50/10. The insured causes an accident which results in bodily injury to the other car’s driver of $7,000, the other car’s passenger of $30,000, and $12,000 property damage to the other car. How much will his policy pay for these losses?

a. $49,000
b. $44,000
c. $42,000
d. $37,000

Answer 37

c. $42,000

Question 38

Bob borrows a pick-up to move his sister to another apartment. Bob, his wife, and son are insured with a personal auto policy. Bob allows his son to drive the borrowed pick-up and his son is involved in an at-fault accident. Who is covered by Bob’s personal auto policy in this case?

a. only Bob since this is a borrowed pick-up
b. only Bob’s son since he was using the vehicle with Bob’s permission
c. both Bob and his son
d. only the owner of the pickup

Answer 38

c. both Bob and his son

Question 39

Allen has a personal Auto policy with a $50,000 combined single limit of liability. He borrows Ken’s car and strikes a pedestrian. Ken has a $100,000 combined single limit of liability. How much will Allen’s insurer pay if a $125,000 judgement is rendered against Allen?

a. $125,000
b. $50,000
c. $25,000
d. $100,000

Answer 39

c. $25,000

Question 40

Which of these vehicles would be covered under the Personal Auto Policy without an endorsement?

a. a trailer designed to be pulled by an automobile
b. an owned golf cart
c. an unlicensed trail bike
d. a motor home

Answer 40

a. a trailer designed to be pulled out by an automobile

Question 41

“Comprehensive” (Other Than Collision) coverage includes which of the following?

a. theft of a covered vehicle
b. damage to the vehicle when broadsiding a hog
c. fire
d. all of the above

Answer 41

d. all of the above

Question 42

Which of the following losses would be considered a “collision” loss?

a. the insured’s car is totaled when it hits a deer in the road
b. the insured’s car hits an icy patch in the road, flips and rolls
c. the insured’s car windshield is broken by gravel falling off the back of a truck
d. the insured’s car is damaged by someone who scratches their initials into the hood of a car

Answer 42

b. the insured’s car hits an icy patch in the road, flips and rolls

Question 43

All of the following dwelling fire forms provide replacement cost coverage on the house except the:

a. Special Forms
b. Broad Form
c. Open Peril Form
d. Basic Form

Answer 43

d. Basic Form

Question 44

The Common Policy Conditions includes all of the following except:

a. the cancellation provisions of the policy
b. the perils insured against
c. the audit provisions of the commercial package policy
d. the duties and obligations of the First Named Insured

Answer 44

b. the perils insured against

Question 45

Which of the following businesses could be best served by a BAILEES property form?

a. Vic’s bicycle repair shop
b. Lauren’s clothing dry cleaning and alteration
c. Dandy TV and VCR repair
d. all of the above

Answer 45

d. all of the above

Question 46

Which of the following statements is false?

a. business income coverage may be subject to a coinsurance penalty
b. extra Expense Coverage reimburse the insured for expenses incurred to keep a business going after a loss caused by a peril insured against
c. dependent Properties business income coverage protects owned property off premises
d. rental value insurance covers loss of rents while a building

Answer 46

c. dependent Properties business income coverage protects owned property off premises

Question 47

Which of the following statements is true?

a. most insurance policies satisfy losses on a prearranged limit
b. most insurance policies satisfy losses on an agreed value basis
c. most insurance policies satisfy losses on a replacement cost basis
d. most insurance policies satisfy losses on an actual cash value basis

Answer 47

d most insurance policies satisfy losses on an actual cash value basis

Question 48

Ocean Marine policies cover perils of the sea. Which of the following is not a peril of the sea?

a. Unusual wind or wave action
b. stranding
c. piracy
d. sinking

Answer 48

c. piracy

Question 49

Which one of the following is covered under Coverage A of the Commercial General Liability policy?

a. injury the insured causes intentionally
b. liability assumed under an insured contract
c. damage to the insured’s work
d. liquor liability for insureds who are in the liquor business

Answer 49

b. liability assumed under an insured contract

Question 50

The Farm Property Coverage Form generally includes all of the following except:

a. dwellings
b. farm Structures
c. growing crops
d. additional living expense

Answer 50

c. growing crops

Question 51

For purposes of Commercial General Liability insurance, copyright infringement in an advertisement is considered to be

a. bodily injury
b. personal and advertising injury
c. indirect injury
d. consequential injury

Answer 51

b. personal and advertising injury

Question 52

A General Average Loss:

a. occurs when, although the property is not completely destroyed, the cost to salvage the property or repair it would exceed the value of the property
b. means that partial losses resulting from the sacrifice of cargo to save remaining property is shared by all other property owners, including the owner of the ship
c. means that each property owner bears the loss to his or her own property
d. requires the ship owner to follow an agreed value of the property

Answer 52

b. means that partial losses resulting from the sacrifices of cargo to save remaining property is shared by all other property owners, including the owner of the ship

Question 53

Theft by an employee of the insured is excluded in all the following forms except:

a. Commercial Property Special Forms
b. Both c and d
c. A Fidelity Bond
d. Employee Theft Crime form

Answer 53

b. both c and d

Question 54

When an expiring claims-made policy is being replaced by another claims made liability policy, the most acceptable way to ensure that the insured will not have any gaps in coverage is to have a retroactive date on the new policy that is

a. the same as the retroactive date on the expiring policy
b. at least one year later than the retroactive date on the expiring policy
c. at least one year earlier than the retroactive date on the expiring policy
d. none of the above, there should be no retroactive date on the new policy

Answer 54

a. the same as the retroactive date on the expiring policy

Question 55

Joe’s restaurant is sued $200,000 for loss of property in their care, custody and control. This is excluded by their commercial property policy but is covered by their commercial umbrella policy. If the commercial umbrella carries a $1,000 self-insured retention, and assuming limits are adequate to cover the loss, how much will the umbrella policy pay?

a. $200,000
b. $-0- because if it is not covered by the underlying form, it cannot be covered by the umbrella policy
c. $199,000 because the insured must pay the retention limit in this case
d. $201,000

Answer 55

c. $199,000 because the insured must pay the retention limit in this case

Question 56

A theft loss evidenced by visible signs of forceable entry or exit is defined as

a. robbery
b. mysterious disappearance
c. burglary
d. stealth

Answer 56

c. burglary

Question 57

Under a GARAGEKEEPERS policy, loss payment is made for:

a. damage to a third party auto while the customer’s car is being test driven
b. a customer’s injury when the customer slips on an oil spot
c. damage to a customer’s car when damaged while being test driven
d. the insured’s automobiles used in the insured’s garage operations

Answer 57

c. damage to a customer’s car when damaged while being test driven

Question 58

The coverage part in the boiler and machinery policy which identifies the items insured under the contract is:

a. the Boiler and Machinery Coverage part
b. the Expediting Expense coverage option
c. the objects definition form
d. the Supplementary Payments section

Answer 58

c. the objects definition form

Question 59

In the Commercial Crime Forms, an insured can obtain coverage for the theft of money and securities while the property is:

a. inside the premises
b. outside the premises
c. both A and B
d. neither A nor B

Answer 59

c. both A and B

Question 60

Which of the following is a difference between the Fidelity Bond and an insurance policy?

a. the Fidelity Bond is purchased by the employee
b. the number of parties to the contract
c. competency of the parties to the contract
d. offer and acceptance

Answer 60

b. the number of parties to the contract

Question 61

Generally, Workers Compensation laws provide for

a. disability benefits
b. medical benefits
c. rehabilitation benefits
d. all of the above

Answer 61

d. all of the above

Question 62

Benefits for work-related injuries under the workers compensation policy are paid:

a. without regard to fault of negligence of the employer, so long as the employee’s injury or disease arises from a work-related activity
b. only when the employer has been negligent.
c. if there has been no assumption of risk by the employee
d. if the employee was not partially responsible for the injury

Answer 62

a. without regard to fault or negligence of the employer, so long as the employee’s injury or disease arises from a work-related activity

Question 63

The type of Professional Liability policy an accountant or insurance agent needs is

a. malpractice insurance
b. errors and Omissions insurance
c. included as part of the Commercial General Liability policy
d. none of the above

Answer 63

b. errors and Omissions insurance

Question 64

A Commercial Umbrella Liability Policy

a. is a substitute for a Commercial General Liability policy
b. is the excess coverage over an underlying liability policy
c. may be issued only if the insured has purchased professional liability insurance
d. is a substitute for a Personal Liability Policy

Answer 64

b. is the excess coverage over an underlying liability policy

Question 65

The Discovery Period under a commercial crime policy is:

a. 1 year
b. 3 years
c. 7 years
d. 2 years

Answer 65

a. 1 year

Question 66

The party protected by a fidelity bond is called the

a. obligee
b. surety
c. principal
d. obla-dee, oble-da life goes on

Answer 66

a. obligee

Question 67

Which of the following businesses below would not be eligible for a Business Auto coverage form?

a. Buster’s Bakery
b. Chauncey’s Department Store
c. Neidermier’s Auto Repair Shop
d. Mooney’s Manufacturing

Answer 67

c. Neidermier’s Auto Repair Shop

Question 68

The pre-licensing education requirement for P & C licensing in Alabama is a total of:

a. 20 hours
b. 40 hours
c. 80 hours
d. 25 hours

Answer 68

b. 40 hours

Question 69

A certificate of authority for an insurance company

a. expires on December 31st if not renewed by the insurer
b. does not expire
c. expires on may 31st if not renewed by the insurer
d. expires one year after it is issued by the Insurance Department

Answer 69

c. expires on May 31st if not renewed by the insurer

Question 70

Property and casualty agents must notify the commissioner in writing of an address change within

a. 10 days
b. 30 days
c. one week
d. one month

Answer 70

b. 30 days

Question 71

When an agent converts premiums into accounts for his or her own use we call this:

a. embezzlement
b. larceny
c. fraud
d. rebating

Answer 71

a. embezzlement

Question 72

The insurance commissioner in Alabama is:

a. appointed by the governor
b. voted into office by general election
c. is selected by the secretary of state
d. is voted into office by the state senate

Answer 72

a. appointed by the governor

Question 73

In Alabama, proof of financial responsibility is required to satisfy any claim under auto insurance in the limits of:

a. 10,000/20,000/10,000
b. 10,000/30,000/5,000
c. 20,000/40,000/15,000
d. 25,000/50,000/25,000

Answer 73

d. 25,000/50,000/25,000

Question 74

Which of the following property is limited to a specific amount in the homeowners policy?

a. musical instruments
b. firearms
c. golf equipment
d. cameras

Answer 74

b. firearms

Question 75

Bennie’s Delivery Service is covered by a Business Auto Policy which covers him for non-owned auto coverage. His employee, Becky, is involved in an accident, driving her own automobile, on the way to the bank. Who is covered by Bennie’s Business Auto Policy?

a. Bennie’s Delivery Service
b. His employee, Becky
c. Both Bennie and Becky
d. None of the above

Answer 75

a. Bennie’s Delivery Service

Question 76

Agents in violation of the Alabama Insurance laws may incur a penalty which:

a. is a $10,000 fine, and life imprisonment
b. is a $5,000 fine, and one year in the county jail
c. is a $1,000 fine, imprisonment in the county jail, or both
d. none of the above

Answer 76

c. is a $1,000 fine, imprisonment in the county jail, or both

Question 77

The commissioner may hold a hearing upon written demand by a person aggrieved by an act, threatened act, or failure of the commissioner to act or by any report, rule, regulation or order of the commissioner. The hearing must be held within:

a. 30 days
b. 10 days
c. 90 days
d. 180 days

Answer 77

a. 30 days

Question 78

Under the Personal Auto Policy, Uninsured Motorists coverage provides coverage bodily injury for which insurance is legally entitled to recover that results from an accident with

a. an uninsured driver
b. a hit and run driver
c. a driver whose insurance company is insolvent
d. all of the above

Answer 78

d. all of the above

Question 79

As an applicant, you are given two opportunities to pass the examination, if you fail the second attempt:

a. you cannot take the exam for a third time
b. you must wait for 6 months before you are allowed to retake the exam
c. you must take the exam again immediately
d. you must wait three months before you can retake the exam again

Answer 79

d. you must wait three months before you can retake the exam again

Question 80

A person who, for compensation, fee or commission, negotiates settlement of claims under insurance contracts is called a/an

a. consultant
b. service claims representative
c. adjuster
d. producer

Answer 80

c. adjuster

Question 81

The Alabama Insurance Guaranty Association is obligated to cover the claims of an insolvent insurer that are in excess of

a. $100
b. $500
c. $800
d. $300

Answer 81

a. $100

Question 82

Part Two of the Workers Compensation policy may pay for which of the following?

a. benefits required by the workers compensation law
b. an employee’s intoxication which did not arise out of the course of employment
c. the willful act of a third party directed against the employee for reasons personal to the employee
d. suits against the employer for job related diseases

Answer 82

d. suits against the employer for job related diseases

Question 83

The burial expense paid by the Alabama Workers Compensation law is:

a. $1,000
b. $2,500
c. $3,000
d. $5,000

Answer 83

c. $3,000

Question 84

One method of complying with the state financial responsibility law is to purchase

a. homeowners insurance
b. pre-paid legal insurance
c. auto liability insurance
d. a personal umbrella policy

Answer 84

c. auto liability insurance

Question 85

Which one of the following would be covered by the Personal Auto Policy medical payments section?

a. the insured’s injuries when struck as a pedestrian
b. the insured’s injuries sustained in a neighbor’s uninsured automobile
c. the insured’s injuries when the car door is slammed on his/her hand
d. all of the above are covered as medical payments

Answer 85

d. all of the above are covered as medical payments

Question 86

Which of the following losses would be excluded by the Insured’s Liability Section of their Personal Automobile Policy?

a. the insured backs out of the garage and runs over the neighbors bicycle
b. the insured backs out of the garage and hits their own parked car
c. the insured backs out of the garage into the path of an oncoming auto
d. the insured backs out of the garage and hits the neighbors house across the street

Answer 86

b. the insured backs out of the garage and hits their own parked car

Question 87

The Alabama Auto Risk Plan provides for all of the following except:

a. allows for a method of settling grievances
b. provides for limits of liability and coverages no less favorable to the insured than those available in the normal market
c. allows for purchase of liability insurance at rates competitive with other insurance companies operating in Alabama
d. must provide reasonable rules for equitable distribution of risks

Answer 87

c. allows for purchase of liability insurance at rates competitive with other insurance companies operating in Alabama

Question 88

The principle which states that an insured be restored to the same approximate financial condition they were in immediately prior to the loss is known as

a. principle of adhesion
b. principle of good faith
c. aleatory principle
d. principle of indemnity

Answer 88

d. principle of indemnity

Question 89

Personal effects insured by the Scheduled Personal Property Endorsement are subject to:

a. named perils subject to the policy deductible
b. named perils without the application of a deductible
c. open perils subject to the policy deductible
d. open perils without the application of a deductible

Answer 89

d. open perils without the application of a deductible

Question 90

Actual Cash Value (ACV) is defined as:

a. the replacement cost of an object plus depreciation
b. the market value of an object
c. the replacement cost of an object minus depreciation
d. the agreed value of an object

Answer 90

c. the replacement cost of an object minus depreciation

Question 91

The term Barratry includes all of the following except:

a. hijacking
b. abandonment
c. embezzlement
d. loss of the freight

Answer 91

d. loss of the freight

Question 92

Hired and non-owned autos

a. are excluded by the Business Auto Policy
b. can be covered by the Business Auto Policy but only if you have a Commercial General Liability Policy
c. are never covered by the Business Auto Policy
d. are covered by the Business Auto Policy at the insured’s option by adding the appropriate symbol

Answer 92

d. are covered by the Business Auto Policy at the insured’s option by adding the appropriate symbol

Question 93

Employers Liability provides coverage to the insured:

a. for business premises liability exposures
b. to satisfy the workers compensation statutory coverages
c. for sums the insured becomes legally obligated to pay because of a work related injury or occupational disease
d. for an employee who sustains a second injury

Answer 93

c. for sums the insured becomes legally obligated to pay because of a work related injury or occupational disease

Question 94

Which of the following coverages must be added to the Business Auto Policy by endorsement only?

a. medical Payments
b. physical damage
c. uninsured motorist
d. both A and C

Answer 94

d. Both A and C

Question 95

Jim Bob is startled to learn that his new next door neighbor manufactures dynamite in the basement of his home. This type of hazard is known as a

a. moral hazard
b. morale hazard
c. physical hazard
d. dukes of hazard

Answer 95

c. physical hazard

Question 96

Workers compensation disability benefits are equal to which percentage of the average weekly wage?

a. 100% of the average weekly wage
b. 50-2/3% of the average weekly wage
c. 75-2/3% of the average weekly wage
d. 66-2/3% of the average weekly wage

Answer 96

d. 66-2/3% of the average weekly wage

Question 97

Bob Doe, in order to make his insurance sales more attractive to his clients, offers to return 10% of the premium to all his customers. This violation of the trade practices law is known as:

a. twisting
b. a refund
c. rebating
d. a really cool sales tactic

Answer 97

c. rebating

Question 98

An insurance policy endorsement may:

a. modify or change an insurance policy
b. broaden coverage
c. restrict coverage
d. all of the above

Answer 98

d. all of the above

Question 99

Any property and casualty insurer accepting business form a person who is not licensed or appointed with the insurer is liable for:

a. a fine of up to $1,000 or one year in the county jail or both
b. a fine of up to three times the premium received from the unlicensed person
c. a fine of up to $5,000, suspension of their certificate of authority or both
d. none of the above

Answer 99

b. a fine of up to three times the premium received from the unlicensed person