insurance

In insurance policies, the insured is not legally bound to any particular action in the insurance contract, but the insurer is legally obligated to pay losses covered by the policy. What contract element does this describe?

Unilateral

What is a material misrepresentation

A statement by the applicant that, upon discovery, would affect the underwriting decisions of the insurance company

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

An insurer the holds a certificate of Authority in the state in which it transacts business is considered?

An authorized insurer

Which of the following includes information regarding a person's credit, character, reputation, and habits?

Consumer report

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 insurance company sells an insurance policy over the phone in response to a TV ad. which of the following best describes this act?

Direct response marketing

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

Express and implied

Which of the following regulatory authorities participated in creating the National Do Not Call Registry?

FTC

Which of the following insurance providers must be nonprofit and sell insurance only to its members?

Fraternal

Mortality-Interest + Expense =

Gross premium

What insurance concept is associated with Weiss and Fitch?

Guides describing company financial integrity

Estoppel

Legal process that can be used to prevent a party to a contract from re-asserting a right or privilege after that right or privilege has been waived. legal consequence of a waiver.

An insurance organization that does not issue insurance policies but provides a meeting place for underwriters to conduct business is known as

Lloyd's association

On a participating insurance policy issued by a mutual insurance company, dividends paid to policyholders are

Not taxable since the IRS treats them as a return of a portion of the premium paid.

Based on Human Life Approach, which of the following is NOT used to calculate an individual's life value?

Predicted needs of the family after the insured's death

What is the income period after the children are no longer dependent upon the surviving spouse for support, but before the surviving spouse qualifies for social security survivor benefits?

Preretirement period

A participating insurance policy may do which of the following?

Py dividends to the policyowner

Another name for a substandard risk classification is

Rated.

Field underwriter

The life insurance producer is the company's

When transacting business in this state an insurer formed under the laws of another country is known as

alien insurer

Which of the following types of agent authority is also called "perceived authority"?

apparent

Conditional receipt

applicant may be covered as early as the date of the application

Representations

are statements believed to be true.

Three types of agent authority

express, implied, and apparent

Consumer reports

include written and/or oral information regarding a consumer's credit, character, reputation, or habits collected by a reporting agency from employment records, and other public sources

representations

insured's statements on the application.

Indemnity

insureds cannot recover more than their loss.

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

principal

The Fair Credit Reporting Act

protects the consumer's right to privacy by making certain that underwriting data is confidential, accurate, relevant, and properly used

Under the Fair Credit Reporting Act, if the consumer challenges the correctness of the information contained in his/her report, the reporting agency must

Respond to the consumer's complaint

An insurer wishes to compare the information given in an insurance application with previous insurance applications by the same applicant but for different companies. What organization can help the insurer accomplish this?

The Medical Information Bureau

What must happen when an individual policy or annuity has been personally delivered to the policy owner?

The policy owner must sign a delivery receipt