Insurance test questions
Insurable Interest
A life insurance policy would be considered a wagering contract without
The insurance company
A policy of adhesion can only be modified by whom?
What is a warranty
A statement guaranteed to be true
Three types of agent authority include
Express , implied and apparent authority
Unilateral Contract
In an insurance contract, the insurer is the only party who makes a legally enforceable promise. What kind of contract is this?
A insurance arrangement which circumvents insurable interest starutes is called:
Investor-originated life insurance
Insurance policies are considered aleatory contracts because
Performance is conditioned upon a future occurrence
Aleatory Contract
Q purchases a $500,000 life insurance policy and pays $900 in premiums over the first six months. Q dies suddenly and the beneficiary paid \$500,000 . This exchange of unequal values reflects which of the following insurance contract features ?
Contract
Require an offer . Acceptance and consideration
Representations
Statements made on an insurance application that are believed to be true to the best of the applicant's knowledge are called
Fiduciary Responsibility
Taking receipt of premiums and holding them for the insurance company is an example of:
The schedule and amount of premium payments
The consideration clause of an insurance contract
Unilateral Contract
promise in exchange for an act ( life and health insurance policies)
Representations and Warranties
statements of fact about the past or present ( false representations will void a policy)