Chapter 1:

Which is the primary source information used for insurance underwriting?

Application

Which of the following best describes the aleatory nature of an insurance contract?

Exchange of unequal values

What is the purpose of the buyers guide?

To allow the consumer to compre the costs of different policies.

Which of the following is not the consideration in a policy?

The application given to a prospective insured

Which is the appropriate action by the insurer if a prospective insured submitted an incomplete application?

Return the application to the applicant for completion

If a policy includes a free-look period of at least 10 days, the Buyer's Guide must be delivered to the applicant

with the policy

If an applicant for a life insurance policy and person to be insured by the policy are two different people, the underwriter would be concerned about:

Whether an insurable interest exist between the individuals.

Which of the following would be qualify as a competent party in an insurance contract?

The applicant has a prior felony

What describes the specific information about a policy?

Policy summary (A policy summary describes the features and elements of the specific policy for which a person is applying.)

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

consideration

In forming an insurance contract, when does acceptance usually occur:

When an insured underwriter approves coverage.