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)