abby
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