Primerica :)

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

Aleatory

When may a representation be withdrawn?

prior to issuance of the policy

The price of insurance for each exposure unit is known as

rate

An intentional or unintentional concealment entitle the affected party to which of the following?

rescission of a contract

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

the application given to a prospective insured

Which of the following best describes a misrepresentation?

A statement intended to distract, mislead, or deceive a party to a contract

The key factor of the representation that allows the injured party to rescind the contract is

if the representation is false in a material point

An insurance contract requires that both the insured and the insurer meet certain conditions in order for the contract to be enforceable.What contract characteristic does this describe?

Conditional

Which of the following would qualify as a competent party in an insurance contract?

The applicant has a prior felony conviction

A person caught violating provisions regarding misrepresentation could be subject to

a fine up to $25,000

During the grace period, the policyowner can

pay a late premium without penalty

When would a misrepresentation on an insurance application be considered fraud?

If it is intentional and material

Which of the following best describes the aleatory nature of an insurance contract?

exchange of unequal values