other insurance concepts

Q purchases a $500,000 life insurance policy and pays $900 in premiums over the first six months. Q dies suddenly and the beneficiary is paid $500,000. This exchange of unequal values reflects which of the following insurance contract features?

Aleatory

Taking receipt of premiums and holding them for insurance company is an example of

Fiduciary reasonability

In regards to representations or warranties which of these statements is true?

If material to the risk false representations will void a policy

Which of these arrangements allows one to bypass insurable interest laws?

Invester-originated life insurance

Stranger Originated Life Insurance (STOLI) has been found to be in violation of which of the following contractual elements?

Legal purpose (insurable interest)

The consideration clause of an insurance contract includes.

The schedule and amount of premiums payments

Which of these is considered a statement that is assured to be true in every respect?

Warranty

A contract where one party either accepts or rejects the terms of a contract written by another party is called a contract of

adhesion

A contract where one party either accepts or rejects the terms of an contract wirtten by another party is called a contract of

adhesion

All of the following are considered to be typical characteristics describing the nature of an insurance contract EXCEPT

bilateral

Which of the following consist of an offer, acceptance, and consideration?

contract

insurance policies are offered on a take it or leave it basis, which make them?

contracts of adhesion

a life insurance contract would be considered a wagering contract WITHOUT:

insurable interest

When third-party ownership is involved, applicants who also happen to be the stated primary beneficiary are required to have

insurable interest in the proposed insured

If a contract of adhesion contains complicated language, to whom would the interpretation be in favor of?

insured

A life insurance arrangement which circumvents insurable interest status is called

investor-oriented life insurance

Which of these is NOT considered to be an element of an insurance contract

negotiating

Insurance policies are considered aleatory contracts because

performance is conditioned upon a future occurrence

Which of these is not a type of agent authority?

principle

What is the consideration given by an insurer in the consideration clause of an life policy

promise to pay a death benefit to a named beneficiary.

Which of these BEST describes a warranty?

statement guaranteed to be true

A policy of adhesion can only be modified by whom?

the insurance company

In an insurance contract, the insurer is the only party who makes a legally enforceable promise. What kind of contract is this?

unilateral

When must insurable interest be present in order for a life insurance policy to be valid

when the application is made