Which one of the following describes the concept of subrogation?

A) The insured claims the right to sue a third party.

B) The insurer claims the right to send the disputed claim into arbitration.

C) The insurer claims the right to collect from a negligent third party.

D) The insurer claims the right to collect damages from the insured.

Answer: C

Property

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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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James is the insured on a life insurance policy where his age was misstated on the application. Which of the following is CORRECT regarding the death benefit amount?

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The pro rata liability clause is designed to protect the principle of
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A domestic insurer issuing variable contracts must establish one or more
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No existing agent's license will be revoked until
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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
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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?
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The authority granted to a licensed producer is provided via the
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The pro rata liability clause is designed to protect the principle of
When the principal gives the agent authority in writing, it's referred to as
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All of the following are true regarding rebates EXCEPT
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All of the following are elements of an insurance policy EXCEPT
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All of the following are true of key person insurance EXCEPT
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What documentation grants express authority to an agent?

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