Alabama Life and Health Insurance Exam Questions and Answers, Exams of Insurance law

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Alabama Life and Health Insurance Exam

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what law protects consumers from the circulation of inaccurate or obsolete information? - Answer The Fair Credit Reporting Act Insurers are classified according to their domicile. What are the 3 types of insurers? - Answer domestic, foreign, and alien what type of insurer is a voluntarily formed organization that provides religious organizations with a representative form of government? - Answer Fraternal insurer the type of insurance company organized to return any surplus money to its policyholders is known as what? - Answer mutual company when agents act within the scope of their contract, their actions will be assumed to be the actions of whom? - Answer Insurer what is the name of the process that insurance companies use to determine if an applicant is insurable? - Answer underwriting if an insurer needs to obtain information about the applicant from investigators, what is the insurer required to do? - Answer provide the aplicant with a Disclosure Authorization Notice

what type of insurer is formed under the laws of another country? - Answer Alien when risks with higher probability of loss are seeking insurance more often than other risks, is known as what? - Answer adverse selection when does an insurance policy go into effect? - Answer when to policy is delivered and the premium is paid. according to the Law of Agency, a principal is represented by whom? - Answer an agent or producer what type of risk is insurable? - Answer pure who owns stock companies? - Answer stockholders what entities make up the Medical Information Bureau? - Answer Insurers when a change needs to be made on the application for insurance, which is the best method for correcting the information? - Answer complete a new application of ask the applicant to initial the correction on the original application in order to transact insurance within a given sate, an alien insurer must first obtain what? - Answer Certificate of Authority Insurance is a contract that protects the insured from what? - Answer Loss

what do individuals use to transfer their risk of loss to a larger group? - Answer Insurance in the agent/insurer relationship, who is considered the principal? - Answer Insurer whom does an insurance agent represent? - Answer insurance company what are the three types of agent authority? - Answer express, implied and apparent what type of hazard does an applicant present when they conceal health information? - Answer moral 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? - Answer mutual the reduction, decrease, or disappearance of value of the person or property insured is a policy is known as what? - Answer Loss what are the 3 types of hazards? - Answer physical moral, and morale if an agent fails to obtain the applicants signature on the application, what must an insurer do? - Answer send it back to the applicant to get the signature

what two elements are necessary for a life insurance contract to have a legal purpose - Answer insurable interest and consent when would a misrepresentation on an insurance application be considered fraud? - Answer when it is intentional and material for the purpose of insurance, what is risk? - Answer uncertainty of loss whose responsibility is it to determine that all the questions on an application are answered? - Answer the agent's what are the strategies used by underwriters to prevent adverse selection? - Answer restriction of coverage; refusal to accept risk; accepting a risk at a higher rate an insurance company is domiciled in California and transacts business in Nevada. what is the insurer's classification in Nevada? - Answer foreign wagering on a sporting event is known as what type of risk? - Answer speculative what are the 5 characteristics of an ideally insurable risk? - Answer loss must be: due to chance, definite and measurable, statistically predictable, not catastrophic,