1. Which of the following is not a marketing and distribution system used by insurers?
A. Direct Writing
B. Broker Agency
C. Captive Agency
D. Independent Agency
2. Which of the following is not a type of hazard for insurance underwriting purposes?
A. Moral
B. Morale
C. Incidental
D. Physical
3. Members of the ___________ include state and territorial insurance commissioners or regulators.
A. Securities and Exchange Commission (SEC)
B. National Association of Insurance Commissioners (NAIC)
C. Financial Industry Regulatory Authority (FINRA)
D. Federal Insurance Office (FIO)
4. To act as an agent for an insurer, the producer must be ________ by the insurer:
A. Licensed
B. Certified
C. Appointed
D. Endorsed
5. The Law of Agency states that a person or entity who acts on behalf of another person, company, or government, is known as the __________.
A. Agent
B. Contractor
C. Employee
D. Servant
6. Risk reduction is:
A. Minimizing the chance of loss
B. Assuming the responsibility of the loss
C. Not being involved in the activity that gives rise to that chance of loss
D. Transferring the risk to another
7. All of the following are TRUE regarding agent/producer activities and responsibilities, except:
A. They represent the insurer
B. They solicit, receive, and forward applications for insurance
C. They provide quotes and collect premiums
D. They issue policies
8. The insurable interest on one's own life is generally regarded as:
A. Unlimited
B. Dependent upon the assets the insured owns
C. Based on the number of dependents the insured has
D. Dependent upon the insured's salary