If a third party is led to reasonably believe that an agent is acting with the scope of his/her authority, even though the agent is exceeding his/her authority, the principal may still be bound by the agent's actions. In this case, the agent has bound the principal by

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If a third party is led to reasonably believe that an agent is acting with the scope of his/her authority, even though the agent is exceeding his/her authority, the principal may still be bound by the agent's actions. In this case, the agent has bound the principal by

A) implied authority.
B) apparent authority.
C) incidental authority.
D) express authority.

Answer: B) apparent authority.

Insurance

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An insured's building has an actual cash value of $200,000, and he has insured the property for $120,000 with an 80% coinsurance clause. A $40,000 loss occurs. How much will the policy pay?

An insured's building has an actual cash value of $200,000, and he has insured the property for $120,000 with an 80% coinsurance clause. A $40,000 loss occurs. How much will the policy pay? a) $0 b) $30,000 c) $32,000 d) $40,000 Answer: B

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Fixed annuities provide each of the following EXCEPT
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A domestic insurer issuing variable contracts must establish one or more
All of the following statements concerning the use of life insurance as an Executive Bonus are correct EXCEPT
All of these statements about the Waiver of Premium provision are correct EXCEPT
Which of the following best defines target premium in a universal life policy?
What does the word "level" in Level Term describe?
A beneficiary change can occur
No existing agent's license will be revoked until
Which of the following statements about aleatory contracts is NOT true?
A type of group that has a constitution and bylaws and has been organized for purposes other than obtaining insurance is called a(n)
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The pro rata liability clause is designed to protect the principle of
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Life insurance policies will normally pay for losses arising from
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Ambiguities in an insurance policy are always resolved in favor of the
In an insurance contract, the applicant's "consideration" is the
Agents may be found guilty of defamation if they make a false statement that is intended to?
How many pair of glasses in a 12-month period will a vision expense insurance plan cover?
The voluntary relinquishment of a legal right is called
What documentation grants express authority to an agent?
An error was made on Mary's life insurance application. Which of the following areas are errors commonly made on applications for which the incontestable clause does NOT apply?
All of the following statements are true regarding installments for a fixed amount EXCEPT
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Which nonforfeiture option provides coverage for the longest period of time?
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Purchasing a life insurance policy in order to avoid the forced sale of assets upon death is called
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What is the benefit of choosing extended term as a nonforfeiture option?
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All of the following are true regarding rebates EXCEPT
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Who is responsible for assembling the policy forms for insureds?
Life income joint and survivor settlement option guarantees
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What is the other term for the cash payment settlement option?
What documentation grants express authority to an agent?

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