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Because of an injury an insured has been unable to work for 7 months he wasn't able to pay his life insurance policy premium yet the policy remained in force the policy includes

Waiver of premium rider

A substandard risk compared to a standard risk would pay

a higher premium

who acts on behalf of the principal

agent

In an insurance contract consideration refers to

exchange of something of value by both parties

under what circumstances will the contingent beneficiary receive the death benefit

if the primary beneficiary dies before the insured

if the agent feels that there could he misrepresentation on the part of the applicant for insurance what must the agent do

inform the insurance company

which of the following is an example of a limited -pay life policy

life paid-up at age 65

in a single employer group plan what is the name of a document that is issued to the employer

master contract

which of the following terms refers to an unintentional tort

negligence

an insured submits the full premium along with completed application and the policy is issued 10 day later, when does the coverage begin

on the date of the application

when a death claim is submitted the insurer discovered that insured understated her age on the application for a life policy what action will the insurer take

pay a reduced death benefit based on the insured's actual age

All of the following are examples of risk retention EXCEPT

premiums

The insured pays $1,200 annually for her life insurance premium. this year she has accumulated $175 worth of dividends which she applies to her next premium this reducing it to $1,025 what dividend option has the insured chosen

reduction of premium

An annually renewable term policy

renews each year with an increased premium

if agent fails to obtain an applicant's signature on the insurance application the agent must

return the application to the applicant for signature

an insurance policy that only requires a payment of premium at it's inception and provides insurance protection for the life of the insured and endows at the insured age 100, is called

single premium whole life

in insurance contracts a warranty is a

statement that must be ture

which of the following methods of calculating the amount of life insurance needed takes into account the insured's salary and years until retirement

the human life value approach

The insurer must be able to rely on statement in the application and the insured must be able to rely in the insurer to pay valid claims, In the forming of an insurance contract this is referred to as

utmost good faith

which method of dealing with risk is applied when a person purchases insurance

Transfer

An individual owns an adjustable life policy sometimes in the policy he wants yo increase the death benefit which of the following statements is correct regarding this change

The death benefit can be increased by providing evidence of insurability

the insured is also the policy owner of a whole policy what age must the insured attain in order to receive the policy face amount

100

The Medical Information Bureau (MIB)

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

which of the following is considered a field underwriter

An Agent

which of the following would be the main source of underwriting information used by the company information used the company in the risk selection process

Application

which of the following terms refers to the transfer of some or all of the ownership right of a life insurance policy from one individual to another

Assignment

all the following are non forfeiture options in life insurance policies except

Automatic Premium loans

which if the following dose not need to be identified in an insurance policy

The insurer's financial rating

an insurance contract must contain all of the following element to be considered legally binding except

Beneficiary's Consent

which of the following would not be eligible for coverage under key person insurance

The owner of a shop

Risk in insurance terminology refers to

The uncertainty of financial loss

when must insurable interest exist in life insurance

Date of Application

when the insured purchased a new home he wanted to purchase a life insurance policy that would protect his family against losing the home should he die before the mortgage was paid the most inexpensive types of policy that would accomplish this need would be

Decreasing term

which of the following is not a standard exclusion in life insurance policies

Disability

which of the following best describes the aleatory nature of an insurance contract

Exchange of unequal values

which of the following is not a type of hazard

Exposure

A spouse receive $5,000 a month until the principal and interest on her husband life insurance policy have been paid put which settlement option did this beneficiary choose

Fixed amount

Conditions that increased the chances of an insured loss occurring referred to as

Hazards

when would a misrepresentation on the insurance application be considered fraud

If it is intentional and material

which provision states that if a policy allows for greater compensations than the financial loss incurred the insured may only receive benefits for the amount lost

Indemnity

A life insurance policy has a legal purpose if both of which of the following elements exist

Insurable interest and Consent

which of the following is true about the mandatory free-look period in life insurance policy

It begins when the policy is delivered

In order to reinstate a life insurance policy the insured must do all of the following except

Pay next year's premium in advance

which of the following documents describes specific information about policy prevision and benefits

Policy Summary

if no receipt is issued at the time of applications a statement of good health is usually required at the time of

Policy delivery

which of the following is true regarding a joint life policy

Premium is based on the average age of the insureds

The price of insurance for each unit of exposure is known as

Rate

with a traditional whole life policy the death benefit

Remains Constant over time

if an employee wants to enter the group outside of the open enrollment period to reduce adverse selection the insures may

Require evidence of inseparability

what is the main responsibility of company's underwriting unit

Risk Selection and Classification


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