General Insurance

At the time of policy delivery

If during the underwriting process an insurer obtains personal information about an applicant from the applicant, when must the insurer provide notice of its information practices

When an insurers underwriter approves coverage

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

Executive is the owner, and the executive pays the premium

In the Executive Bonus plan, who is the owner of the policy, and who pays the premium?

Express Authority

The authority granted to an agent through the agent's contract is referred to as

Material Misrepresentation

Untrue statements on the application unintentionally made by insureds that, if discovered would alter the underwriting decision of the insurance company are called

Agent's contract with the principal

What documentation grants express authority to an agent?

When the application is signed and a check is given to the agent.

When is the earliest a policy may go into effect?

Implied

Which authority is NOT stated in an agent's contract but is required for the agent to conduct business?

It is a nonprofit organization that maintains underwriting information on applicants for life and health insurance

Which of the following best describes the MIB?

Exchange of unequal values

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

To minimize the insured's level of liability in the event of loss

Which of the following is NOT a goal of risk retention?

Buyer's Guide

Which of the following is a generic consumer publication that explains life insurance in general terms in order to assist the applicant in the decision-making process?

driving recklessly

Which of the following is considered to be a morale hazard?

Premium amounts and surrender values

Which of the following will be included in a policy summary?

The policy is owned by the company

All of the following statements concerning the use of life insurance as an Executive Bonus are correct EXCEPT

aleatory

An insured pays a $100 premium every month for his insurance coverage, yet the insurer promises to pay $10,000 for a covered loss. What characteristic of an insurance contract does this describe?

Present the insured with a Disclosure Authorization Notice

An insurer wants to obtain information from investigators regarding an insured. What must the insurer do in order to legally acquire this information?

Predicted needs of the family after the insured's death.

Based on Human Life Value Approach, which of the following is NOT used to calculate an individual's life value?

Contracts of Adhesion

Contracts that are prepared by one party and submitted to the other party on a take it or leave it basis are classified as?

The uncertainty or chance of loss

For the purpose of insurance, risk is defined as

Reasonable Expectations

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?