LOUISIANA LIFE, HEALTH AND
ACCIDENT INSURANCES, 100%
ACTUAL 2024 EXAM [A+ GRADED]
which of the following best describes the aleatory nature of an
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insurance contract? - ANS-Exchange of unequal values
An insured purchased an insurance policy 5 years ago. Last
year she received a dividend check, this year she didn't what
type of insurer? - ANS-Mutual
What documentation grants express authority to an agent? -
ANS-Agents contract with the principal
Because an agent is using stationery with the logo of an
insurance company, applicants for insurance assume that the
agent is authorized to transact on behalf of that insurer. What
type of agent authority does this describe? - ANS-Apparent
An insured pays a $100 premium, yet the insurer promises to
pay $10,000 for covered loss. What characteristic of insurance? - ANS-Aleatory
Pertaining to insurance, what is the definition of a fiduciary
responsibility? - ANS-Promptly forwarding premiums to the
insurance company
Installing deadbolt locks on the doors of a home is an example
of which method of handling risk? - ANS-Reduction
All of the following are examples of risk retention EXCEPT -
ANS-Premiums
Which of the following is an example of risk retention? - ANS-To
minimize the insured is level of liability in the event of loss
Which of the following would be considered risk-sharing? -
ANS-Reciprocal
If a court ordered payment for a loss that was not covered in
the policy even if it was clearly worded, it would be an example
of which legal concept? - ANS-Reasonable expectations
Which of the following is the basis for a claim against an
insurance policy? - ANS-Loss
The risk of loss may be classified as - ANS-Pure risk and
speculative risk
Something of value exchanged between the insurer & the
insured is considered a - ANS-Consideration
Contracts that are prepared by 1 party on a-take-it-or-leave-it
basis are classified as - ANS-Contracts of adhesion
A situation in which a person can only lose or have no change
represents - ANS-Pure risk
Units with the same or similar exposure to loss are referred to
as - ANS-Homogeneous
Events in which a person has both the chance of losing are
classified as - ANS-speculative risk
an individuals tendency to be dishonest would be a - ANS
Moral hazard
Insurance companies may be classified according to the legal
form of their ownership. The company organized to return any
surplus money to the policyholders is - ANS-a mutual insurer [Show Less]