Financial it is
Restoring them to the same financial positions as before a loss.
WHAT IS INDEMNITY.
It has three parts consideration, accept and offer.
What is a contract
Which of the following refers to a condition that may increase the chance of loss?
What is Hazard.
Restoring an insured to the same condition as before a loss is known as:
What is the Principle of indemnity
Increased chance of a loss because of an insured's dishonest tendencies.
What is Moral hazard
"The more times an event is repeated,the more predictable the outcome becomes.
What is Law of Large Numbers
the failure of the applicant to disclose a known material fact when applying for insurance.
What is Concealment.
In an insurance contract, the insurer is the only party who makes a legally enforceable promise. What kind of contract is this?
What is Unilateral
At what point must a Life insurance applicant be informed of their rights that fall under the Fair Credit Reporting ACT?
What is Upon completion of the application.
Which of these describe a participating insurance policy?
What is policy owners are entitled to receive dividends.
A Life policy that contains monthly mortality charges as well as self-directed investment choices is called a(n).
What is Variable Universal Life Policy.
Take it or leave it
What is Adhesion
Which of the following contracts is defined as "one that restores an injured party to the condition that was present before the loss?
What is Indemnity Contract
An Insurance applicant Must be informed of an Investigation regarding his/her reputation and character according to the:
What is Fair Credit Reporting Act
When a policy pays dividends to its policyholders, its is said to be.
What is Participating
An underwriter that a Life insurance applicant's risk should be reclassified due to health issues. This policy may be issued with a(n)
What is Exclusions.
Which of the following is a contract that involves one party which indemnifies another when a loss arises from an unknown event?
What is a Insurance policy
Which of these is NOT considered to be an element of an insurance contract?
What is Negotiating
Kathy purchases a $500,000 life insurance policy and pays $900 in premiums over the first six months. Kathy dies suddenly and the beneficiary is paid $500,000. This exchange of unequal values reflects which of the following insurance contract features?
What is Aleatory
Insurance contracts are known as___because certain future conditions or acts must occur before any claims can be paid.
What is Conditional
is a written contract in which one party promises to indemnify/compensate another against loss that arises from an unknown event.
What is an insurance policy.
A Situation in which there is ONLY a chance of loss or no loss is a
What is speculative risk.
Life & health insurance policies are:
What is Unilateral Contracts
A policy of adhesion can only be modified by whom?
What is the insurance company.
Which of these is considered a statement that is assured to be true in every respect?
What is Warranty.
All of the following are considered to be typical characteristics describing the nature of an insurance contract, EXCEPT:
What is Bilateral
Statements made on an insurance application that are believed to be true to the best of the applicant's knowledge are called.
What is Representations.
Which of the following statements about aleatory contracts is NOT true?
What is the insured and the insurer contribute equally to the contract
Which of the following consists of a offer,acceptance, and consideration?
What is contract
Which of the following BEST describes a warranty?
What is statement guaranteed to be true
A pamphlet falsely representing the financial condition of a computer.
What is Defamation.
Susie is covered by a whole life policy. Which insurance product can cover his children?
What is Child Rider
What kind of life insurance product covers children under their parent's policy?
What is Term Rider
A person may sell, solicit, or negotiate insurance on behalf of an insurer immediately after:
What is appointed with a company
A Life insurance policy would be considered a wagering contract without.
What is insurable interest
What kind of life insurance starts out as temporary coverage but can be later modified to permanent coverage without evidence of insurability?
What is Convertible Term
Which of the following is required for an insurance producer applicant who must pass a written examination for licensure:
What is a Fingerprint & Criminal background
Which action by an insurance producer is considered rebating:
What is Splitting commission with a policy owner who has purchased additional coverage.
A Life insurance policy that provides a policy owner with cash value along with a level face amounts is called.
What is whole Life
E and F are business partners. Each takes out a $5000,000 life insurance policy on the other, naming himself as primary beneficiary. E and F eventually terminate their business, and four months later E dies. Although E was married with three children at the time of death, the primary beneficiary is still F. However, an insurable interest no longer exists. Where will the proceeds from E's life insurance policy be directed to?
What is F