Insurance

Question 1

Comparative negligence statutes

Answer 1

Allocate negligence and loss proportionately

Question 2

Reformation

Answer 2

Both parties aware and work together to rectify a situation

Question 3

Rescission

Answer 3

No agreement can be reached and is usually carried out by a court of law

Question 4

Res ipsa loquitor

Answer 4

The thing speaks for itself, no need to prove negligence

Question 5

Parole evidence rule

Answer 5

Once contract is placed into written form, all previous and prior understandings of a verbal contract (or any other nature) will not be allowed to contradict the written contract

Question 6

Estoppel

Answer 6

When a party is denied assertion of a right to which they are otherwise entitled. Ex: if an insurance company tells you they won’t increase your insurance because of one accident, they can be denied from increasing insurance premium at next opportunity because of informal agreement.

Question 7

Waiver provision

Answer 7

Company representatives cannot change the contract

Question 8

Absolute liability

Answer 8

Situation where someone has undertaken activities or actions that bring about extraordinarily hazardous circumstances

Question 9

Guaranteed purchase options

Answer 9

Guaranteed purchase options cannot be purchased with guaranteed purchase option provisions.

Question 10

Features of a Variable Universal Life (VUL) policy

Answer 10

Flexibility as to premium payments
Choice as to investment options
Availability of a guaranteed minimum death benefit

Question 11

Group Model of HMO

Answer 11

Arrangement sometimes known as the network model

Question 12

Collateral Assignment

Answer 12

A temporary transfer of some or all of the ownership rights whereby such rights revert to the assignor upon satisfaction of agreed-upon conditions

Question 13

Absolute Assignment

Answer 13

Irrevocable transfer of all ownership rights which can be accomplished through a sale or gift

Question 14

National Association of Insurance Commissioners

Answer 14

Works to see that information is adequately communicated as circumstances arises
Indirectly provide for the exchange of information and preparation of your recommendations
Accredit state insurance offices

Question 15

Duties of insurance commissioners in regulating insurers

Answer 15

Determine if an insurer meets the requirements to obtain a license

Conduct financial investigations of insurers operating in the state

Question 16

Which branch of government is charged with interpreting and enforcing state insurance code rulings that have the force of law?

Answer 16

Executive

Question 17

Which of the following accurately reflects to taxation of an annuity owned by a decedent

Answer 17

Deferred interest is subject to income in respect to a decedent (IRD)

Question 18

The particular type of disability insurance that is renewable is

Answer 18

Non-cancelable and guaranteed renewable

Question 19

Probation persist in a disability income policy

Answer 19

The time the insurer must wait after the issue of the policy before specified conditions will be covered

Question 20

Split definition of disability

Answer 20

At first the insured is considered disabled if he, or she cannot perform his or her specific occupation. after a period usually 2 to 3 years, the definition is broadened to include any occupation to which the insured is fit to undertake based education or training.

Question 21

Skilled nursing care

Answer 21

The highest level of care provision which calls for services where residents are seen regularly by physicians

Question 22

Group model of the HMO

Answer 22

Sometimes known as the network model

Question 23

The HMO model under which the subscribers have the greatest flexibility is:

Answer 23

The IPA model

Question 24

Figuring out insurance company payment for property insurance

Answer 24

Amount carried / Amount Required (usually 80% of value) x loss minus deductible