This examination is for the Guidance Counseling (Prof Educ 5) students of Philippine Normal University Manila. After finishing the examination, print the result...
50 Questions | By Bruiz1990 | Last updated: Jul 30, 2011
P&c Insurance Practice Exam (/quizschool/story.php?title=pc-insurance-practiceexam) Ins 21 - Quiz 1 (/quiz-school/story.php?title=ins21-quiz-1) Chapter 1 - Principles Of Insurance (/quizschool/story.php?title=principles-insurance) Chapter 2 - The Insurance Contract (/quizschool/story.php?title=insurance-contract) Chapter 4 - Insurance Transactions (/quizschool/story.php?title=insurance-transactions)
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Questions and Answers 1. an insurance company selling in a state other than one is which it resides
is called?
A. A Foreign Insurer B. A Domestic Insurer
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C. A General Insurer
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D. A Captive insurer 2. When a company is licensed to do business in texas it becomes?
B. Transfer C. Avoidance D. Assumption 4. A agents licensed in states where they are not resident are called?
A. Foreign agents B. Alien agents C. Surplus lines agents D. Nonresident agents 5. When a company is licensed by the department of insurance to so
business in the state it becomes?
A. An admitted Company B. A domestic Company C. A captive Company D. A Reciprocal Company 6. If an agent, while selling a policy tells the prospect he is fully covered and
everything will be taken care of when this is not the fact, the agents is guilty of?
A. Arbitration B. Inducting C. Misrepresntation D. Contractual agreement 7. This commissioner of insurance may revoke a license for all of the
following EXCEPT:
A. Committing unfair practices are defined in the insurance code B. Demonstrating a lack of trustwortiness C. Failing to complete an approved course study within 90 days after license renewal
D. Having an insurance license revoked by another state 8. The commissioner may revoke an agents license for all of the following
A. Engaging in fraudulant of dishonest practices B. Committing a criminal act C. Sharing commissions with an agent licensed in the appropiate lines of insurance
D. Violating a regulation or order 9. An individual appointed by the insurance company to represent the
company and offer the policy its behalf is?
A. An agent B. An underwritter C. An officer D. An Adjuster 10. An insurance policy is called a conditional contract because:
A. Only one party makes an enforceable promise B. Both parties must perform certain acts C. Both parties must agree in atmost good faith D. Riders may be used to modify the contarct. 11. An insurance company formed under the laws of the state where the
insurance is written is called?
A. Captive Insurer B. Alien Insurer C. Domestic Insurer D. Reciprocal Insurance exchange 12. An Insurer head quarters in Europe operating in the united states is called
a :
A. Foreign Insurer B. Alien Insuere C. Captive Insurer D. Reciprocal Insurance exchange 13. A Contract in which the terms are not negotiables is called a?
A. Bilateral Contract B. Unilateral Contract C. Aleatory Contract D. Contract of Adhension 14. A licensed insurance agent has the authority to do all of the following
EXCEPT:
A. Solicit insurance applications B. Quote insurance premiums C. Put policies of insurance into effect if the agent has binding authority D. Split commissions with unlicensed agents as a finder fee 15. How many times can a person take the insurance test in one given year?
A. Once B. Twice C. 3 Times D. An Unlimited number 16. If an agents license is expired less than 90 days, whichof the following is
NOT true?
A. Has to pay late fee equal to one half of the license fee B. Must file a renewal application C. Must retake the test D. May not renew after 90 days 17. If an agent has a license revoked, they may reapply after:
A. 3 Months B. 6 Months C. 1 year D. Never 18. What is it called when an insurance agent intimidates an insured
individual?
A. Coercion B. Defamation C. Twisting D. Connection 19. A policy sold in any other state the one the company resides in si called?
A. Domestic B. Domicite C. Resident D. Foreign 20. If an agent is selling in a state where he does not have a license he is
considered?
A. A foreign Agent B. A domestic agent C. A nonresident Agent D. A allien agent 21. Mutual insurance companies are owned by their?
A. Shreholders B. Partnership C. Policy holders D. Stock holders 22. The Texas code prohibits all of the following EXCEPT:
A. Coercion B. Binding Coverage C. Defamation D. False advetising 23. How often the agent does have to renew a license
A. 2 years B. 5 years C. 10 years D. Unlimited 24. If an agent meets continuing education for what a period of time can they
obtain in a license?
A. 3 Years B. 5 Years C. 10 Years D. Indefinity 25. Stock Companies are owned by
A. Stock Holders B. Policy Holders C. Share Holders D. Partenerships 26. Specify authority formally granted in oral or written agreements by the
insures as known agents powers?
A. Express Authorithy B. Apparent Authority C. Implied Authority D. Certificate Of Authority 27. Giving or offering to pay as an inducement to insurance, any rebates of
premiums is known as what?
A. Rebating B. Defamation C. Discrimination D. Misrepresntation 28. Which license is given to a partnership?
A. Partnership Business Appointment B. Corporate License C. Special Agent license D. Individual License 29. Insurance for which there is no market throught an authorized insurers due
to the risk being very large or unusual in nature:
A. Fire Insurance B. Surplus lines insurance C. Reciprocal Insurance D. Fraternal Exchange 30. The department of insurance is required to examine every newly
organized insurer:
A. Once every three years B. Periodically C. Once every year for the first three years D. At given notice per the request of the commissioner 31. How many years experience must the commissioner have in the field of
insurance or insurance regulation?
A. 5 years B. 10 years C. 1 year D. None 32. In order to form a Lloyds Associaation you must have:
A. The name of the insurer B. At least 10 underwriters to form a lloys association C. A surety bond of at least $25,000 D. A none resident license 33. Anyone who solicits applications for insurance and collects or transmits
insurance premiums
A. Broker B. Insurer C. Soliciter D. Agent 34. A Certificate of Authority. (https://www.proprofs.com/discuss/q/1092447/a-
A. Is a license issued to all Texas agents upon passing the required examination B. Is issued to authorized insurers to allow them to transact business in texas C. Is used to show an agents appointment with particular company D. Is given to all surplus lines agents 35. What is true about a testimonial
A. Must imply that the insurer has been approved by a government group B. Must represent the authors current opinion and be accurately reproduced C. Can only be used after the person giving the testimonial has died D. Does not need to state if the person giving the testimonial has been compensated
36. Which of the following does not constitude denial of a license?
A. Anyone who is reapplying for a license after previouse license expired for a period of one year.
B. Been guilty of fraudulent practices. C. Guilty of rebating and insurance premium D. Making incomplete comparisons regarding terms of an insurance contract 37. Publishing false and derogatory statments about the financial condition of
an insurer with the intent of causing injury is an illegal practice known as?
A. Twisting B. Defamation C. Coercion D. Boycott 38. Temporary license connot be issued more than once in a six month period
A. True B. False 39. Which of the following is not considered an unfair claims settlement?
A. Misrepresenting pertinent facts or provisions relating to coverages B. Forcing the insureds to sue by offering less than the amount due C. Failing to respond promptly to a request for personal contacts for a claim D. Attempting to make promp fair, claim investigations when liability is not reasonably clear
40. The primary function of this person is to evaluate risk and offer advice for
the reduction of it
A. Twisting B. Binding C. Rebating D. Soliciting 41. Holds supervisory responsibility and is responsible for accepting agency
appointments
A. Surplus lines B. Reciprocal insurer C. Managing General Agent D. Supervisory Advisor 42. What statment is false when renewing your license
A. The license will expire two years after the date it was issued, unless renewed. B. The commissioner will mail a notice of impending expiration 90 days in advance
C. If the license is not renewed by the expiration date , you must reapply and retake the examination
D. To keep the license active , an agent must file a renewal application and pay the renewal fee every two years
43. Continuing education records must be kept for :
A. 3 years B. 2 years C. 1 year D. 4 years 44. All of the following is an example of unfail claims settlements practice
A. Failing to maintain a complete record of complaints received during the last three years or since the date of the last examination of the commissioner
B. Providing all claims forms necessary for claim settlement C. Attempting to settle a claim for less than the amount a reasonable person
would believe is due from reading the advertsing material from the application
D. Refusing to pay claims without conducting a reasonable investing 45. If an agent while selling a policy tells a prospect he is fully covered and
everything will be taken care of when that is false, the agent is committing:
A. Arbitration B. Inducement C. Misrepresentation D. Contractual Agreement 46. The total amount paid for unearned premiums by the Texas property and
casualty
A. Up to $25,00 B. Up to $2,500 C. $300,00 D. Unearned premiums is not covered by the association 47. If there is a reason to believe that any person is engaging in an unfair
method of competition or act that is in violation with the insurance code, the commissioner will issue a:
A. Written letter of the offense B. Cease and desist order C. Unfair Competitive practice D. Criminal Matter 48. County Mutual Insurance Companies
A. Provide insurance against loss or damage by fire, lightning , explosion and theft
B. Are not an actual but could be compared to a stck exchange C. Specialize in providing workers compesation benefits in Texas D. Provide insurance to individuals who might not qualify to purchase insurance thru the normal marketplace
49. Life insurance counselor is to:
A. Provide commissions earned to other life agents B. Examinne life insurance policies for the purpose of giving advice respecting the terms
C. Solicit insurance on behalf of an insurance company D. Sign and excute company records and insurance transactions 50. The Texas Property and Casualty insurance guaranty association was
created to provide for the payment of workers compensations benefits of an impaired employer A. True B. Fale
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