Family first life study guide for exam

Adhesion

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

Insurable interest

A life insurance policy would be considered a wagering contract WITHOUT

Insurable interest

A life insurance policy would be considered a wagering contract WITHOUT?

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

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

Conditional

Insurance contracts are known as_______ because certain future conditions or acts must occur before any claims can be paid.

contracts of adhesion

Insurance policies are offered on a "take it or leave it" basis, which make them:

equity index insurance

S is close to retiring and would like to purchase a policy that will yield greater gains than bonds, but will still protect the principal with a minimum level of risk. Which product would S be advised to purchase?

Representations

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

Fiduciary responsibility

Taking receipt of premiums and holding them for the insurance company is an example of?

the schedule and amount of premium payments

The consideration clause of an insurance contract includes:

when the application is made

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

When the application is made

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

Warranty

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

Contract

Which of these require an offer, acceptance, and consideration?

through mutual funds, stocks, bonds

how does a typical variable life policy investment account grow?

Limited pay life

life insurance that covers an insured's whole life with level premiums paid over a limited time is called:

increasing

K purchased a life insurance policy in 1986 which paid 10% interest in the early years of the policy. Twenty years after the purchase, she received a notice from the insurer stating that the policy will soon terminate unless a much- higher premium is paid because of the falling interest rates. This type of policy is known as a _______ life policy?

exceeds the maximum amount of premium that can be paid into a policy and still have it recognized as a life insurance contract

which of these statements describe a modified endowment contract (MEC)?

a minimum guaranteed death benefit is provided

which statement is TRUE regarding a variable whole life policy?

the duration of premium payments

whole life insurance is sometimes referred to as "straight life". What does the word "straight" indicate when using this phrase?