General insurance chapter quiz

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Which of the following is the basis for a claim against an insurance policy

loss

Which of the following is the best reason to purchase life insurance rather than annuities

to create an estate

hazard

A danger or risk.

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

Conditional

Which of the following is TRUE regarding the insurance amount in a credit life policy

Creditor can only insure the debtor for the amount owed.

In the executive bonus plan, who is the owner of the policy and who pays the Premium

Executive is the owner and the Executive pays the premium.

What does "level" referred to in the level term insurance

Face amount

Which of the following entities is not an insurer but an organization formed to provide insurance benefits for members of an affiliated large or religious organization

Fraternal benefit society

Universal life insurance policy has two types of interest rates that are called

Guaranteed and current

Annually renewable term policies provide a level death benefit for a premium that

Increases annually

Which statement is NOT true regarding a straight life policy

Its premium steadily decreases over time, in response to its growing cash value.

Which of the following is an example of a limited pay life policy

Life Paid-up at Age 65

Which of the following terms means a result of calculation based on the average number of months to ensure it is projected to live due to medical history in mortality factors?

Life expectancy

Which option for universal life allows the beneficiary to collect got the death benefit and cash value upon the death of the insured

Option B

An applicant wants to buy a policy that has a cash value element. What type should she buy

Permanent

All of the following are marketing arrangements used by insurers except

Reinsurance System

Uninsured receives a monthly summary for his life insurance policy. He notices that the cash value of the policy is significantly lower this month and it was last month. What type of policy does the insured have

Variable

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

When it is intentional and material

Which of the following would describe a legal document which would dictate who can buy a deceased partners share of a business and for what amount

buy-sell agreement

When will the 20th a whole life policy endow

When the insured reach his age 100

Which of the following documents delivered to the policy owner includes information about premium amounts, cash values, surrender values and death benefits for specific policy years

A policy summary

All of the following are personal use of life insurance except

Buy sell agreement

Which of the following must ensure obtain in order to transact insurance within a given state

Certificate of authority

What is a definition of a unilateral contract

One-sided: only one party makes an enforceable promise

If someone wants to buy a life insurance policy that will provide lifetime protection against premature death, what type of life insurance policy should that person by?

Permanent

An adjustable life policy owner can change which of the following policy features

The coverage period

What is the purpose of key person insurance

To minimize the risk of financial loss caused by the death of a key employee

If an insurer meets the states financial requirements and is approved to transact business in the state it is considered to be

authorized

Which of the following are the authorities that an agent can hold

express and implied

And insured stated on her application for life insurance that she has never had a heart attack, when in fact she had a series of minor heart attacks last year for what she sought medical attention. Which of the following will explain the reason for death benefit claim is denied?

Material misrepresentation

An applicant wants to buy a life insurance policy in which he can count on receiving the same benefits as stated in the contract. Which type should he buy?

fixed

An individual that has just borrow $10,000 from his bank on a five-year installment loan requiring monthly payments. What type of life insurance policy would be best suited to the situation

Decreasing term

What is the term for the entity that an agent representative regarding contractual agreements with third parties

Principal

What is the maximum amount of coverage that the Utah life and health insurance guarantee association (ULHIGA) will pay

500,000

Who is the owner and who is the beneficiary on a key person life insurance policy

the employer is the owner and beneficiary

A key person insurance policy can pay for which of the following

Costs of training a replacement

Which of the following is TRUE about credit life insurance

Creditor is the policyowner.

And insurance contract must contain all the following to be considered legally binding except

Beneficiaries consent

Stranger-oriented life insurance policies are in direct opposition to the principle of

Insurance interest

And a life settlement contract, whom does the life settlement broker represent

owner

An insured has a life insurance policy that requires him to only pay premiums for a specified number of years until the policy is paid up. What kind of policy is it?

Limited-Pay Life

If the owner of a whole life policy who is also the insured dies at age 80, and there are no outstanding loans on the policy, what portion of the death benefit will be paid to the beneficiary

The full death benefit

And employee is insured under her employer is a group life plan. if she terminates her group coverage, which of the following statements is INCORRECT

The insured may choose to convert to term or permanent individual coverage


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