Arizona Life And Health Insurance Exam 128 Questions And Answers
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Terms in this set
128
The document required for an insurance company to transact insurance
Certificate of Authority
According to the Law of Agency, a principal is represented by whom?
Agent or Producer
When does an insurance policy go into effect?
When the policy is delivered and the premium is paid.
What type of risk is insurable?
Pure Risk
Who is responsible for making sure that an applicant receives the new insurance policy once it's issued?
The agent
A situation in which a person can only experience a loss and no gain presents what type of risk?
Pure Risk
When would a misrepresentation on an insurance application be considered fraud?
When it is intentional and material
The type of insurance company organized to return any surplus money to its policyholders is known as what?
Mutual company
What is the best way to handle incomplete insurance applications?
Return the application to the applicant for completion
What are the five characteristics of ideally insurable risk?
Loss must be: 1) Due to Chance. 2) Definite and measurable. 3) Statistically predictable. 4) Not catastrophic. 5) Coverage cannot be mandatory.