Property and casualty
Which of the following named beneficiaries would NOT be able to receive the death benefit directly from the insurer in the event of the insureds' death? a)The former wife of the deceased insured b)A minor son of the insuredc )A business partner of the insured d)The wife of the deceased insured
A minor son of the insured Because a minor does not have the legal capacity to release the insurer from further obligation, benefits normally have to be passed through a guardian or trustee.
Which of the following is NOT an essential element of an insurance contract? a)Legal purpose b)Counteroffer c)Consideration d)Agreement
Counteroffer In order for insurance contracts to be legally binding, they must have four essential elements: agreement (offer and acceptance), consideration, competent parties, and legal purpose. Counteroffer is not required.
Who would be eligible to obtain SGLI? a)Small employers b)The elderly c)Low-income individuals and families d)Military personnel
D. Military personnel Members of the uniformed forces can obtain term group life insurance through Servicemembers' Group Life Insurance (SGLI). Coverage is available in $50,000 increments up to the maximum of $400,000.
If a court ordered payment for a loss that was not covered in the policy even if it was clearly worded, it would be an example of which legal concept? a)Reasonable expectations b)Cease and desist c)Nonforfeiture d)Indemnity
Reasonable expectations If, because of advertising or sales literature or statements by an agent, an insured could reasonably expect the coverage, the courts have held that the insurer must provide that coverage.
What is an SGLI
Servicemembers' Group Life Insurance (SGLI) offers low-cost term coverage to eligible service members
In a viatical settlement, who is considered the viator? a)The insurer b)The third party c)The insured d)The policy beneficiary In a viatical settlement, the insured is considered the viator. Viators usually receive a percentage of the policy's face value from the third party who purchases the policy. The new owner continues to maintain premium payments and will eventually collect the entire death benefit.
c)The insured In a viatical settlement, the insured is considered the viator. Viators usually receive a percentage of the policy's face value from the third party who purchases the policy. The new owner continues to maintain premium payments and will eventually collect the entire death benefit. Next
Which of the following statements is correct? a)Care needed because of aging is covered by Medicare but not by Medicare supplements. b)Care needed because of aging is covered by Medicare. c)Medicare does not pay for nursing home care in any case. d)Medicare will cover nursing home care if it is part of the treatment for a covered illness.
d)Medicare will cover nursing home care if it is part of the treatment for a covered illness. Medicare will cover nursing home care if it is part of the treatment for a covered injury or illness, but care needed because of aging is not covered by Medicare or Medicare supplements. Medicare and Medicare supplements pay for skilled nursing care, but the coverage is limited. Medicaid does pay for nursing home care, but it provides coverage only for those that qualify with low income and low assets.
