Insurance Class

  1. Fraternal Companies are?
    a non-profit, exclusive company ie. The Lion Club
  2. What is a premium?
    What you pay for insurance
  3. Transacting Insurance S.P.E.T.
    • Solicitation of the client
    • Preliminary negotiations
    • Effectuation of the contract
    • Transact
  4. Eplain the McCarran Act
    began in 1945; allows states to regulate insurance but the gov't still could step in
  5. who makes the insurance laws?
  6. An alien insurer is?
    an insurance company formed in any other country
  7. how often can the insurance director examine the domestic insurers and with how many days in advanced?
    Every three years or as often as they see fit with a minimum  days notice
  8. Mutual insurance companies are?
    companies that are owned b the policy holders themselves
  9. When a written report is made, how many days do you have to refute?
    30 days
  10. Stock companies are owned by?
    The SHAREholders, not the STOCKholder
  11. who examines insurance producers?
    the insurance director
  12. Admitted insurers are authorized by____________ with a ______________
    DOI; Certificate of authority
  13. Policies of an admitted insurer are guaranteed by the _____________
    Alaska Insurance Guarantee Association (AIGA)
  14. A Domestic Insurer is?
    an insurance company formed in alaska according to the alaska statutes
  15. Stock companies are?
    corporations that insure stock in which investors can buy.
  16. For violations found, what are the maximum fines for willful and non willful
    • Non willful, 2,500 per violation or up to 25,000 for the general business practice
    • Willful, 250,000 for the general business practice
  17. Foreign Insurers are?
    Insurance companies from the lower 48 or Hawaii
  18. T or F

    the director has the authority to prosecute when the producer is found guilty of a violation

    but they work in the same office and can get them involved
  19. Claims that go against the DOI go to which court system?
    The AK superior court
  20. What is not  peril?

    A. Wind B. Hail C. Gas can D. Cold Weather
  21. What is not a hazard?

    a. worn tires  b. broken steps  c. worn wiring  d. a basement
  22. Under which concept is the insurer indemnified?
    a. subrogation  b. negligence  c. risk  d. binder
  23. owning property involves
    a. indemnity  b.binder  c. deductible  d. risk
  24. what is an economic loss? 
    a. burned house  b. hurt feelings  c. expended tank of gas  d. worn carpet
  25. what valuation takes into consideration usage? 
    a. replacement cost  b. actual cash value       c. market value  d. stated value
  26. Which of the following is indirect loss?

    building loss
    antique furniture damaged by smoke
    auto damage caused by theft
    renting an auto because of theft
    renting an auto becauseof theft
  27. insurance is used to indemnify against?
  28. a fire causes water damage and fire damage to an insured property that has only fire coverage. Which of the following is true?

    D. ) the proximate cause of all damage is fire
  29. which of the following would have an insurable interest in a building destroyed by fire?

    owner and renter
    owner and renter
  30. the coinsurance requires that property be insured to value or within a certain % of value of the property or the insurer will

    cancel the policy
    raise the premium
    pro rate losses
    do a risk assessment
    pro rate losses
  31. the law of large numbers.....
    helps to predict
  32. an obligation to another that is legally enforceable is....
    a liability
  33. the insured receives notice that his policy will not renew  by the insurer. what provision in the policy would allow for this?
    non renewal
  34. policy provisions or coverages can be changed by?
  35. a contract between two entities that indemnifies one against financial losses is called?
  36. which of the following is false about deductions 

    they encourage the insured to minimize losses
    they shift the cost of small claims tot he insured 
    they help lower premiums
    they increase underwriting expenses
    they increase underwriting expenses
  37. which of the following is not a type of hazard?

  38. in an insured pays the first 100,000 before an insurer pays any claim, the insured has a?
  39. what is an occurrence but not an accident?

    a water pipe leaks causing mold damage
    a person twist an ankle exiting an auto
    a ladder falls causing bodily injury
    a window breaks caused by a falling tree
    a water pipe leaks causing mold damage
  40. a building that no longer has tenants because its being renovated is considered?
  41. a policy has aggregate limit of 1,000,000 and an occurrence limit of 200,000. If a judgement of 300,000 is awarded against the insured, what will the remaining limits be for the rest of the year?
    8000,000 aggregate 300,000 occurrence
  42. an agent may issue all of the following except

    a policy
    a receipt
    a binder
    a certificate of insurance
    a policy
  43. a thief, locked in a building breaking out is?
  44. the following would NOT be on the Dec pages

    list of all forms
  45. the promise to do something in the future is?
  46. a loss payee...

    has a financial interest in an insurance settlement
    can be held liable to the insured 
    can be held liable to the insurer
    is not in the Dec pages
    has a financial interest in an insurance settlement
  47. the applicant does not tell the truth about past losses. the insurer may not pay a future claim because of?
  48. 2 insurers are insuring the same commercial property. ABC provides 100,000 and XYZ provides 300,000 of coverage. if the insured has an 80,000 loss, how will the insurers settle?
    each pays a pro rata share
  49. the person who settles a dispute between 2 appraisers during an appraisal is?
    an umpire
  50. proof of loss is
    a sworn statement listing items an insured lost because of a covered peril
  51. the insurer giving its written consent to the insured transferring its rights to others is?
  52. what DP covers theft of a washing machine?
  53. which DP would cover dwelling ACV
    DP 1
  54. which DP would cover extra expenses of large apartment complexes
  55. which DP would the ECs be  optional
    DP 1
  56. which DP would cover roof storage shed from fire
    DP 1, 2, and 3
  57. which DP would cover a car if the garage caught on fire
Card Set
Insurance Class
insurance class