Chapter 2

An insurance contract must contain all of the following to be considered legally binding EXCEPT

Beneficiary's consent.

When applying for an individual life insurance policy, an applicant that he was also having severe chest pains. This is an example of states that he went to the doctor for nausea, but fails to mention

Concealment.

An insurer neglects to pay a legitimate claim that is covered under the terms of the policy. Which of the following insurance principles has the insurer violated?

Consideration

The part of a policy that clarifies terms in the policy is the

Definitions.

Which of the following would be named on the declarations page of a property or liability policy?

First named insured

6: In return for premium, an insurance company must

Give Be fair in underwriting and pay covered losses.

Who is responsible for filling out a notice of claim form?

Insured

11: The part of the insurance contract that describes the covered perils and the nature of coverage of the contractual agreement between the insurer and the insured is called the

Insuring agreement

All of the following are conditions commonly found in the insurance policy EXCEPT

Insuring agreement.

A sworn written statement that must be furnished by the insured to the insurer before any loss under a policy can be paid is called

Proof of loss.

All of the following are considered parts of the policy structure EXCEPT

Provisions.

10: Which of the following protects consumers against the circulation of inaccurate or obsolete personal or financial information?

The Fair Credit Reporting Act

7: Which of the following would NOT be considered a source of insurability information by an insurer?

The applicant's marital status