Please help me with the answers. I might be wrong on this my answers have a star *

1. Henrique is an agent. The significance of the decision in southwest painting VS. Binsfield is that Henrique may not be required to secure ___ insurance protection, but may need to explain policy options that are ____.

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* effective, significant

specific, written

widely available for this type of business at a relatively low cost

guaranteed, oral

2. Gem Insurance Companys agents were thoroughly conversant with the terms, conditions, and benefits of all of the contracts offered by the company. Therefore, they were able to fulfill their responsibility of describing these accurately to their _________.

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Peer

* Contact

Director

Prospect

3. Blake is an insurance agent. "Deceptive and unfair trade practice laws " apply to Blake because of:

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Agents are licensed

Consumer protection

* Insurance is a service

The IRS has it this way

4. Lonnie, an agent for Fidelity Insurance Company, acting within the scope of his authority could __________ regardless of whether Fidelity profited by his actions.

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Offer a rebate to a prospective client.

Represent two companies.

* Undersell the company.

Bind the company.

5. Alex owns an insurance company. The "liquidation order of priority" that occurs when Alexs company is liquidated by a state commissioner gives top priority to _____.

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* policyholders, insureds and guaranty funds

liquidation expenses and costs

taxes

reinsurers

6. Danielle is an agent. Danielle should know about the decision in Small VS. King where it was determined that an agents duty to provide ____ cannot be triggered by a clients request for because that request is not a specific inquiry about a specific type of coverage.

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correct coverage

premium financing, installments

liability insurance, indemnification

* specimen policies, sample clauses

7. Sal is a policy holder. A dispute over "lost policies" has developed. What must Sal do to prove coverage?

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Showing that he made a diligent search for the policy

* Prove the existence and the contents of the policy

File a police report.

Both a and b.

8. John is an agent. In Benton VS. Paul Revere Life the courts clearly point out that John must know:

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His license number.

Understand the differences between two products he is selling.

Which clients have special needs.

* Every policy term and provision by heart.

9. Lea is an agent. As an agent Lea has a ____ unless the directions given by the principal are deemed unreasonable or illegal.

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duty of loyalty

duty not to compete

* duty to obey

duty of conduct

10. American Insurance Company allowed their agents to offer a ________policy if it is in the best interest of the client. This is legal, ethical, and moral if the agents purpose is to truly satisfy the clients needs.

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Replacement

* Twisted

Advertisement

Rebate

11. Shane owns a company. Liability may not be exclusive to Shanes company in which of the following?

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fair trade

twisting

tort cases

* commingling

12. Courtney is an agent. Which of the following is NOT required of Courtney once a Fiduciary relationship exists?

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Faithfully perform her duties to the client.

* Be loyal to her company.

Account for all funds she handles in performing her duties.

Place a clients money in her personal account, if she considers that the best method of keeping it safe

13. Erica is an agent for Assurance Insurance Company. The ____ is a rule of conduct that will protect Erica and the Assurance Insurance Company from almost all liability.

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simple rule

only rule

golden rule

* solid rule

14. George is an insurance agent. George attempts to settle a claim on the basis of an application that was altered without the Insureds knowledge. Which of the following has occurred?

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Commingling of funds

* Conflict of interest

Unfair claims practice

Twisting

15. Hartford Insurance Company does not allow their agents to obtain a loan for a prospective policyholder from their company in return for the purchase of a policy through the agent. This practice constitutes a violation of __________.

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* Anti-discrimination laws

Anti-rebate statutes

Assumed authority policy

Underwriters agreement

16. If there arose a need to resolve a controversy with a policyholder, Best Insurance Company considered Lonnie, their agent, as acting within the scope of his _____ authority as the companys representative and not the representative of the policyholder.

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Apparent

Actual

Projected

* Assumed

17. Christian is an insurance agent. Christian places a clients money in his personal bank account. He is guilty of which of the following?

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Unfair claims practices

Commingling of fund.

* Twisting

Conflict of interest

18. Richard is a life agent for New York Life. When selling a policy to a client, Richards primary objective should be to ____.

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give the best possible advice

adjust the coverage for the client

* make the most profit for the company

convert the policy for the client

19. Alisher sells life insurance for Pennsylvania Insurance. Which of the following requires Alisher to exercise scrupulous honesty in dealings with the prospect, to use his best efforts to further the prospects interests, and to avoid getting into a position where the agents own interests are in conflict with those of the prospect?

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Duty of implied responsibility

Duty of loyalty

Duty to obey

* Duty of insurable interest

20. Sally is an agent. Most states prohibit Sally from _____ as an inducement to purchase a policy of life insurance.

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Discounting

Granting a rebate

* Giving a thank you gift

Extending additional benefit

21. Lea sells life insurance for Lifetime Insurance. If Lea places her clients money in her own personal account, it is called ____ and is grounds for suspension or revocation of her license.

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Fiduciary relationship

Unfair claims practice

Commingling

*Conflict of interest

22. The significance of the decision in Southwest Painting vs. Binsfield (1995) is that agents may not be required to secure insurance protection, but may need to explain policy options that are _____________.

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oral

* written

widely available for this type of business at a relatively low cost

guaranteed

23. The significance of the decision in Southwest Painting vs. Binsfield (1995) is that agents may not be required to secure insurance protection, but may need to explain policy options that are _____________.

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oral

* written

widely available for this type of business at a relatively low cost

guaranteed

24. The ___________ relationship entitles the company to an accounting, even without the necessity of showing something due from the agent.

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principal

* changing

taxable

fiduciary

25. The ___________ relationship entitles the company to an accounting, even without the necessity of showing something due from the agent.

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principal

* changing

taxation

fiduciary