New York Life- Life chapter 1

Consideration

An insurer to pay a legitimate claim that is covered under the terms of the policy. Which of the following terms best describes what the insurer has violated?

Express Authority-Principal

Grants authority to an agent through the agent's contract.

Fiduciary responsobility

Handling insurer funds a trust capacity

Unilateral

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?

Implied authority

Is not written in the agent's contract but is required in order for the agent to conduct business. Exists because not every single detail of an agent's authority can be written in a contract.

Pure risk

Situations that can only result in a loss or no change. The only type of insurance companies are willing to accept.

Guides describing company financial integrity

What insurance concept is associated with the words "Weiss" and Fitch"?

Implied

Which authority is NOT stated in an agent's contract but is required for the agent to conduct business?

Aleatory

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?

Fraternal benefit society

Which of the following entities is not an insurer, but an organization formed to provide insurance benefits for member of an affiliated lodge or religious organization?

Federal Deposit Insurance Program (FDIC)

Which of the following is NOT a government insurance program?

Speculative risk

involves the chance of gain or loss and is not insurable.

Adhesion contract

is prepared by only the insurer, the insured's only option is to accept or reject the policy as it is written