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Alabama Life & Health Insurance Exam (7 Sets of Exam’s) questions verified with 100% correct answers 1. what law protects consumers from the circulation of inaccurate or obsolete information ANS The Fair Credit Reporting Act 2. Insurers are classified according to their domicile. What are the 3 types of insurers ANS domestic, foreign, and alien 3. what type of insurer is a voluntarily formed organization that provides religious organizations with a representative form of government ANS Fraternal insurer 4. the type of insurance company organized to return any surplus money to its policyholders is known as what ANS mutual company 5. when agents act within the scope of their contract, their actions will be assumed to be the actions of whom ANS Insurer
Typology: Exams
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12.what type of risk is insurable ANS pure 13.who owns stock companies ANS stockholders 14.what entities make up the Medical Information Bureau ANS Insurers 15.when a change needs to be made on the application for insurance, which is the best method for correcting the information ANS complete a new application of ask the applicant to initial the correction on the original application 16.in order to transact insurance within a given sate, an alien insurer must first obtain what ANS Certificate of Authority 17.Insurance is a contract that protects the insured from what ANS Loss 18.in insurance, when is the offer usually made on a contract ANS when the application is submitted 19.the insurer organized to return a profit to the stockholders is what type of insurer ANS stock company
20.in forming an insurance contract, when does an acceptance usually oc- cur ANS when the insurer approves a prepaid application
21.an insurance company that is formed under the laws of another state is known as what type of insurer ANS Foreign 22.insurance is used to transfer what to the company ANS financial responsibility for loss 23.what type of report provided information about the applicants hobbies, habits, and financial status ANS inspection report 24.what document is required for an insurance company to transact insur- ance ANS Certificate of Authority 25.a state issued document empowering an insurance company to become an admitted insurer is called what ANS Certificate of Authority 26.what do individuals use to transfer their risk of loss to a larger group ANS In- surance 27.in the agent/insurer relationship, who is considered the principal ANS Insurer
28.whom does an insurance agent represent ANS insurance company 29.what are the three types of agent authority ANS express, implied and apparent 30.what type of hazard does an applicant present when they conceal health information ANS moral 31.an insurance policy paid a nontaxable dividend to the insured one year, and nothing the next. From what type of insurer did the insured purchase the policy ANS mutual 32.the reduction, decrease, or disappearance of value of the person or prop- erty insured is a policy is known as what ANS Loss 33.what are the 3 types of hazards ANS physical moral, and morale 34.if an agent fails to obtain the applicants signature on the application, what must an insurer do ANS send it back to the applicant to get the signature 35.what two elements are necessary for a life insurance contract to have a legal purpose: insurable interest and consent 36.when would a misrepresentation on an insurance application be consid- ered fraud ANS when it is intentional and material 37.for the purpose of insurance, what is risk ANS uncertainty of loss
38.whose responsibility is it to determine that all the questions on an appli- cation are answered ANS the agent's 39.what are the strategies used by underwriters to prevent adverse selec- tion ANS restriction of coverage; refusal to accept risk; accepting a risk at a higher rate 40.an insurance company is domiciled in California and transacts business in Nevada. what is the insurer's classification in Nevada ANS foreign 41.wagering on a sporting event is known as what type of risk ANS speculative 42.what are the 5 characteristics of an ideally insurable risk ANS loss must be: due to chance,
definite and measurable, statistically predictable, not catastrophic, coverage cannot be mandatory 43.a person who does not lock the doors to his or her house shows an indifferent attitude. This person presents what type of hazard ANS morale 44.a situation in which a person can only experience a loss and no gain presents what type of risk ANS pure risk 45.what are the 4 elements of an insurance contract ANS agreement (offer and acceptance), consideration, competent parties, and legal purpose 46.what is the term for the causes of loss insured against an insurance policy ANS peril 47.conditions that increase the chance of loss are known as what ANS hazards 48.if an applicant does not receive his policy, who would be held responsi- ble ANS the agent 49.what law is the foundation of the statistical prediction of loss upon which rates for insurance is calculated ANS Law of Large Numbers 50.what is the best way to handle incomplete insurance applications ANS return it to the applicant for completion