WFG- Completing the Application, Underwriting, and Delivering the Policy

an insurer has made all of the decisions regarding the provisions included in the insured's policy. The insured finds an objectionable provision and wants to negotiate it with the insurer but is not allowed to do so. Her only options are to reject the policy or accept it as is. Which contract feature does this describe?

Adhesion

Which of the following best describes the concept that the insured pays a small amount of premium for a large amount of risk on the part of the insurance company?

Aleatory

which of the following would be deducted from the death benefit paid to beneficiary, if a partial accelerated death benefit had been paid while the insured was still alive?

Amount paid with the accelerated benefit, plus the amount of earnings lost by the insurance company in interest income from the accelerated benefit.

Which of the following is the basic source of information used by the company in the risk selection process?

Application

An insurance contract must contain all of the following to be considered legally binding EXCEPT

Beneficiary's consent.

Which of the following best details the underwriting process for life insurance?

selection, classification, and rating of risks

An insurer neglects to pay a legitimate claim that is covered under the terms of the policy. Which of the following insurance principles has the insurer violated?

Consideration

Items stipulated in the contract that the insurer will not provide coverage for are found in the

Exclusion Clause

The responsibility of making certain that an application for insurance is filled out completely, correctly, and to the best of his or her knowledge is the responsibility of whom?

The Producer

In which if the following examples would a contract between an insurer and prospective insured be legal?

The applicant has a prior felony conviction.

Which of the following is NOT the consideration in a policy?

The application given to a prospective insured

If an insurer issued a policy based on the application that had unanswered questions, which of the following will be TRUE?

The policy will be interpreted as if the insurer waived its right to have an answer on the application.

Which is generally true regarding insureds who have been classified as a preferred risks?

Their premiums are lower.

What is the purpose of the buyer's guide

To allow the consumer to compare the costs of different policies

Why should the producer personally deliver the policy when the first premium has already been paid?

To help the insured understand all aspects of the contract

Contracts that are prepared by one party and submitted to the other party on a take-it-or-leave-it basis are classified as

contracts of adhesion

An individual applied for an insurance policy and paid the initial premium. The insurer issued a conditional receipt. Five days later the applicant had to submit to a medical exam. If the policy is issued, what would be the policy's effective date?

The date of medical exam