1. A contractor remodeling a home has an insurable interest in that home during the time of the renovation.

True

False

2. A corporation has an insurable interest in the CEO.

True

False

3. Creditors have insurable interests in the lives of their debtors for as long as the debt is outstanding.

True

False

4. If the principal terminates the agency:

a. the agent's express and implied authority to act for the principal is terminated automatically.

b. the agent lacks any authority to bind the principal to third persons.

c. the termination is not effective to terminate any type of authority until notice is given to third parties.

d. the termination is not effective if the agent believes that the terms of his contract have been violated.

5. Under which of the following signatures would the agent be liable on the contract as he signs for the corporation?

a. Alex Agar, Agent

b. Axle Corporation, by Alex Agar, CEO

c. Axle Corporation, per Alex Agar

d. Axle Corporation

6. Which of the following types of authority can exist in an undisclosed principal situation?

a. express authority only

b. express and implied authority only

c. apparent authority only

d. express, implied, and apparent authority