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Question 1

A group owned insurance company that is for MeD to assume and spread. The liability. Risks of its members is known as.

Answer 1

 risk retention group

Question 2

Which of these describe a participating insurance policy

Answer 2

Policy owners are entitled to receive dividends

Question 3

An insurance applicant must be informed of an investigation regarding his, or her reputation and character, according to the

Answer 3

Fair credit reporting act

Question 4

What is the name of the law that requires to disclose information gathering practices and where the information was obtained?

Answer 4

Fair credit reporting act

Question 5

Dividends payable to the policy owner are

Answer 5

Declared by the insurance company

Question 6

When third-party ownership is involved, applicants, who also happen to be the stated, primary beneficiary are required to have

Answer 6

Insurable interest in proposed insured

Question 7

At what point does an informal agreement become a binding contract?

Answer 7

When consideration is provided by one of the parties to the contract

Question 8

Insurance policies are considered aleatory contracts, because

Answer 8

Performance is conditioned upon a future occurrence

Question 9

A life insurance arrangement, which circumvent insurable interest statute is called

Answer 9

Investor originated life insurance

Question 10

Which of the following arrangements allow one to bypass insurable

Answer 10

Investor originated life insurance

Question 11

Stranger originated, life insurance (STOLI) has been found to be in violation of which of the following contractual elements?

Answer 11

Legal purpose (insurable interest)

Question 12

Which of these is not a type of agent authority?

Answer 12

Principle

Question 13

Which of the following best describes a warranty?

Answer 13

Statement guaranteed to be true

Question 14

In regards to representations or warranties, which of these statements is true

Answer 14

If material to the risk, false representations will void the policy

Question 15

Insurance policies are offered on a take it, or leave it basis, which makes them

Answer 15

Contracts of adhesion

Question 16

A policy can only be modified by

Answer 16

The insurance company

Question 17

Which of these is a statement that is assured to be true in every respect?

Answer 17

Warranty

Question 18

If a contract of adhesion contains complicated language, to whom with the interpretation be in favor of?

Answer 18

Insured

Question 19

Statements made on an insurance application that are believed to be true to the best of the applicants knowledge are called

Answer 19

Representations

Question 20

Q purchases a $500,000 life insurance policy and pays $900 in premiums over the first six months. Q suddenly dies and the beneficiary is paid $500,000. This exchange of unequal values reflects which of the following insurance contract features?

Answer 20

Aleatory

Question 21

The consideration clause of an insurance contract includes

Answer 21

The schedule amount of premium payment

Question 22

When must insurable interest be present in order for a life insurance contract to be valid?

Answer 22

When the application is made

Question 23

Life and health insurance policies are

Answer 23

Unilateral contracts

Question 24

A life insurance policy would be considered a wagering contract without

Answer 24

Insurable interest

Question 25

All of the following are considered to be typical characteristics, describing the nature of an insurance contract, except

Answer 25

Bilateral

Question 26

A contract where one party either accepts or rejects the terms of a contract written by another party is called a contract of

Answer 26

Adhesion

Question 27

What is the consideration given by an insurer and the consideration clause of a life insurance policy?

Answer 27

Promise to pay a death benefit to a named beneficiary