Which statement regarding insurance rides is not correct? Insurance cannot cover damage caused by acts of war. The insurable risk needs to be statistically predictable An insurance risk must involve a loss that is definite as to cause, time, place and amount. Applicants who smoke cigarettes are approved on a preferred basis. Which of the following is not the consideration in a policy? The premium amount paid at the time of the application The promise to pay covered losses The application given to a prospective insured Something of value exchanged between parties All of the following attributes are found in stock insurance companies except Earnings from operations may be kept as retained earnings The stockholders may receive a dividend at the end of the year The board of directors is chosen by state-based election board The company is owned by the stockholders The insurer may suspect that a moral hazard exists if the policyholder Always drives ova the speed limit Was not honest about all aspects regarding his health on an application for insurance Frequently is depressed d Has an indifferent view of activities that may be dangerous When acting within the scope of their contract, the actions taken by an agent/producer will be assumed to be acts of the Insurer Policy Owner Department of insurance Insured According to the Law of Agency, a principal is represented by An agent An insurer A broker An insured Officers who manage stock insurance companies are Appointed by the department of insurance Elected by the stockholders Hired through an application process Appointed by the other company officials When must the Buyer's Guide be delivered to the proposed insured? At the first presentation of the policy At the time the appointment is set for the first presentation At the time of the application At the policy delivery Who is the owner of the policy and who pays the premium in an Executive Bonus? Executive is the owner and the company pays the premium Company is the owner and the company pays the premium Executive is the owner and the executive pays the premium
