Chapter 1 Quiz
Over several years, a policy owner paid $10,000 in premiums for his insurance policy. When he suffered a loss, the insurance company paid out $50,000 in benefits. What characteristic of an insurance contract does this describe?
Aleatory
which of the following includes information regarding a person's credit, character, reputation, and habits
Consumer report
the medical information Bureau is
a source of medical information to alert insures to advise 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 in the risk selection process
application or attending Physician's statement
in an insurance contract, consideration refers to
exchange of something of value by both parties
if the agent feels that there could be misrepresentation on the part of the application for insurance, what must the agent do
inform the insurance company
all the following may have an insurable interest in the insured except
insured's best friend or the spouse
an insured submits the full premium along with a complaint application, and the policy is issued 10 days later. when does the coverage begin
on the date of the application
if an agent fails to obtain an applicant's signature on the insurance application, the agent must
return the application to the applicant for signature
what is the main responsibility of a company's underwriting unit
risk selection and classification
which of the following best describes the purpose of the USA Patriot Act with regards to the insurance industry
to prevent terrorism activities through monitoring of financial transactions
when must insurable interest exist in life insurance
application or issue date
if no receipt is issued at the time of application, a statement or good health is usually required at the time of
policy delivery
representations are statements made by the applicant that are
consider true to the best of the applicant's knowledge
