All of the following are common characteristics of a surety bond EXCEPT

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All of the following are common characteristics of a surety bond EXCEPT

A. It is a contractual agreement
B. It protects against default
C. It binds the surety
D. It protects against embezzlement, larceny and gross negligence

Answer: D. It protects against embezzlement, larceny and gross negligence

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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

In insurance,

In insurance, A) contracts made by the agent are considered to be contracts of the producer B) contracts made by the principal are considered to be contracts of the agent C) the insurer is the principal and the producer is the agent D) the producer is the principal and the insurer is the agent Answer: the insurer is the principal and the producer is the agent

Which is generally true regarding insureds who have been classified as preferred risks

Which is generally true regarding insureds who have been classified as preferred risks A) They can borrow higher amounts off of their policies. B) They can decide when to pay their monthly premiums. C) They keep a higher percentage of any interest earned on their policies. D) Their premiums are lower. Answer: Their premiums are lower

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The pro rata liability clause is designed to protect the principle of
What does the Group Life underwriting risk selection process help protect insurance companies from?
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A domestic insurer issuing variable contracts must establish one or more
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Agents may be found guilty of defamation if they make a false statement that is intended to?
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The voluntary relinquishment of a legal right is called
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All of the following are true regarding a decreasing term policy EXCEPT
Purchasing a life insurance policy in order to avoid the forced sale of assets upon death is called
Health insurance will typically cover which of the following perils?
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The authority granted to a licensed producer is provided via the
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All of the following are true regarding rebates EXCEPT
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Life income joint and survivor settlement option guarantees
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Insurance represents the process of risk
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What is the purpose of establishing the target premium for a universal life policy?
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Group health plans may deny participation based upon the
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What documentation grants express authority to an agent?

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