Question

1- A waiver is:

Select one:

a. A condition in property insurance

b. A condition found only in life insurance

c. A condition found in both life and property insurance

d. The intentional abandonment of a known right

2- If an insurance agent were to give legal advice to a client, this would be:

Select one:

a. A required part of the job

b. A crime

c. Only a problem if the advice was incorrect and led to a client's loss

d. A violation of the Fair Trade Act

3-All of the following are reasons to explain why the insurance transaction is so carefully regulated except:

Select one:

a. Insolvent insurers can create serious social-economic problems.

b. Insurance buyers and sellers have unequal knowledge.

c. Insurance prices must be set before costs are known.

d. Insurance company failures were a significant contributing factor to the Great Depression of the 1930s

4- All the following arguments have been used to support state insurance regulation except:

Select one:

a. State regulation is known to be effective.

b. State regulation is cheaper to administer.

c. State regulation allows experimentation.

d. State regulation is more responsive to local conditions.

Answer 1

1.waiver is the voluntary relinquishment or surrender of some known right

Therefore, correct answer is Option d. The intentional abandonment of a known right

2. A required part of the job

3. All of these can be true except (C), which says insurance prices must be set before costs are known. This statement is incorrect because the insurance prices are set only after complete diligence of the risk involved.

4. Your required answer is option A i.e. State regulation is known to be effective because small departments generally do not provide effective regulation .