life insurance exam

over several years, a policyowner paid $10,000 in premiums for his insurance policy. when he suffered a loss, the insurance company paid out $50,000 in benefits. what characteristic of an insurance contract does this describe?

Aleatory

What is insurance?

Insurance transfers the risk of loss

what is the Medical Information Bureau (MIB)?

a source of medical information to alert insurers to adverse medical history

What are the four elements of an insurance contract?

agreement, consideration, competent parties, legal purpose

who is considered a field underwriter?

an agent

If no receipt is issued at the time of application, a statement of good health is usually required at the time of _____?

application

what is the main source of underwriting information used by the company in the risk selection process?

application