General Insurance
At the time of policy delivery
If during the underwriting process an insurer obtains personal information about an applicant from the applicant, when must the insurer provide notice of its information practices
When an insurers underwriter approves coverage
In forming an insurance contract, when does acceptance usually occur?
Executive is the owner, and the executive pays the premium
In the Executive Bonus plan, who is the owner of the policy, and who pays the premium?
Express Authority
The authority granted to an agent through the agent's contract is referred to as
Material Misrepresentation
Untrue statements on the application unintentionally made by insureds that, if discovered would alter the underwriting decision of the insurance company are called
Agent's contract with the principal
What documentation grants express authority to an agent?
When the application is signed and a check is given to the agent.
When is the earliest a policy may go into effect?
Implied
Which authority is NOT stated in an agent's contract but is required for the agent to conduct business?
It is a nonprofit organization that maintains underwriting information on applicants for life and health insurance
Which of the following best describes the MIB?
Exchange of unequal values
Which of the following best describes the aleatory nature of an insurance contract?
To minimize the insured's level of liability in the event of loss
Which of the following is NOT a goal of risk retention?
Buyer's Guide
Which of the following is a generic consumer publication that explains life insurance in general terms in order to assist the applicant in the decision-making process?
driving recklessly
Which of the following is considered to be a morale hazard?
Premium amounts and surrender values
Which of the following will be included in a policy summary?
The policy is owned by the company
All of the following statements concerning the use of life insurance as an Executive Bonus are correct EXCEPT
aleatory
An insured pays a $100 premium every month for his insurance coverage, yet the insurer promises to pay $10,000 for a covered loss. What characteristic of an insurance contract does this describe?
Present the insured with a Disclosure Authorization Notice
An insurer wants to obtain information from investigators regarding an insured. What must the insurer do in order to legally acquire this information?
Predicted needs of the family after the insured's death.
Based on Human Life Value Approach, which of the following is NOT used to calculate an individual's life value?
Contracts of Adhesion
Contracts that are prepared by one party and submitted to the other party on a take it or leave it basis are classified as?
The uncertainty or chance of loss
For the purpose of insurance, risk is defined as
Reasonable Expectations
If a court ordered payment for a loss that was not covered in the policy even if it was clearly worded, it would be an example of which legal concept?