Chapter 1 Flash Card Study Set Life insurance

Pay dividends to the policyowner

A participating insurance policy may do which of the following?

Contracts that are prepared by one party and submitted to the other party on a take it or leave it basis are classified as

Contracts of adhesion

Hazards

Events or conditions that increase the chances of an insured loss occurring are referred to as

Unilateral

If only one party to an insurance contract has made a legally enforceable promise, what kind of contract is int?

An insured wants to transfer his personal insurance policy to a friend. Under what conditions would this be possible?

The insured will need a written consent of the insurer

B/C an agent is using stationary with the logo of an insurance company, applicants for insurance assume that the agent is authorised to transact on behalf of that insurer. What type of authority does this describe?

Apparent

Which of the following is a statement that is guaranteed to be tru, and if untrue, may breach an insurance contract?

Warranty

Consideration

When an insured makes truthful statements on the application for insurance and pays the required premium, it is known as which of the following

it is issued to group insurance participants

Which of the following is NOT true regarding a Certificate of Authority?

To minimize the insured's level of liability in the event of a loss

Which of the following is not a goal of risk retention?

Private insurers may be authored to transact insurance by state insurance departments

Which of the following statements is an accurate comparison between private and government insurers

Apparent

Which of the following types of agent authority is also called "Perceived Authority"