Question Description

11.Which of the following statements is correct about exclusive agents and independent agents?

Select one:

a. The compensation of independent agents is lower than those paid to exclusive agents.

b. Average operating expenses and premiums for personal lines of insurance tend to be higher for exclusive agents than for those in the independent agency system.

c. The exclusive agent has as much independence as those who operate under the independent agency system.

d. Unlike independent agents, exclusive agents do not own the x-date.

e. Like for independent agents, the customer is considered to be the exclusive agents\' rather than the insurers.

12.Identify the ideal strategy for a hard market.

Select one:

a. Reinsurance

b. Risk avoidance

c. Risk transfer

d. Self-insurance

e. Insurance with copayment

13.Some special limits that apply to personal property may be too low. Your jewelry may be worth far more than the $1,000 limit of a homeowners policy. Such property can be listed and specifically insured to provide adequate coverage against all risks by adding the:

Select one:

a. business pursuits endorsement.

b. scheduled personal property endorsement.

c. equipment breakdown endorsement

d. inflation guard endorsement.

e. personal property replacement cost endorsement.

14.This proposal is also regarded as the insurance regulatory reform road map draft, and it has added fuel to the debate of state versus federal insurance regulation. Identify it.

Select one:

a. Health Insurance Portability and Accountability Act (HIPPA)

b. Gramm-Leach-Bliley Financial Services Modernization Act (GLBA)

c. State Modernization and Regulatory Transparency (SMART) Act

d. Federal Information Security Management Act (FISMA)

e. Sarbanes-Oxley (SOX) Act

15.Which of the following types of annuities guarantees that the annuitant and/or beneficiary will receive, during the liquidation period, minimum payments equal to the single premium in an immediate annuity or the accumulation value in a deferred annuity?

Select one:

a. Deferred annuity

b. Structured settlement annuity

c. Joint annuity

d. Refund annuity

e. Temporary annuity