10.1a

Question 1

As a financial contract, a life insurance policy is regulated through its contractual provisions and clauses which are defined by the state and the insurer with the intention of ______.

Answer 1

protecting the rights of both consumers and insurers alike

Question 2

A life insurance policy is a legal document that creates ownership for the policy’s owner as long as ______ exists at the time of application between the policy’s owner and the insured individual for which the policy is underwritten, whether it be the same person or two different people.

Answer 2

insurable interest

Question 3

A life insurance policy is not a ‘personal contract’ between the insurance company and the insured individual. Life insurance is considered ______ of the policyowner and the policyowner has the right to designate the policy’s beneficiary and any contingents, as well as decide the ______ of the beneficiary.

Answer 3

legal property

revocable or irrevocable status

Question 4

Located at the beginning of an insurance contract, the Entire Contract provision details the policy’s documents, including the policy application and any attached riders that may have been added to the policy. This provision also prohibits the insurer and the insured from ______, whether by outside documents or by oral statements (parol evidence rule).

Answer 4

making any changes to the contract

Question 5

Written into all life insurance policies, the insuring clause states that an insurance company will ______ in the event of an insured’s death.

Answer 5

honor its obligation to pay benefits