Insurance Manual Chapter 1
All of the following are true statements regarding representations EXCEPT
A statement that is guaranteed to be true
The type of contract where on party creates the contract terms and the other party must accept the terms unconditionally is a
Contract of adhesion
An insurance company incorporated in Indiana, with its home office in Texas, is licensed to conduct business in all states except Pennsylvania. In Texas, this company would best be described as which of the following type of insurers?
Foreign
Which of the following statements regarding the doctrine of insurable interest are CORRECT
It must exist at the time of application
Which of the following parties are not required to sign an application for life insurance?
The beneficiary
All of the following are sources of insurability EXCEPT
The beneficiary designation
Which of the following statements regarding mutual insurance companies is CORRECT?
The policyholders are the owners and share in any company earnings
With an insurance contract, what is the insured's consideration?
The premium paid
All of the following are responsibilities of the agent EXCEPT
Changing answers on the application and initialing them
An insurance company doing business in the same state it was incorporated in is a
Domestic insurer
All of the following are true statements regarding a Statement of Good Health EXCEPT
It is obtained when a policy is delivered where a conditional receipt was issued
Statements made by an applicant for insurance in the application are considered to be
Representations
Which of the following cannot call a person whose name is registered with the National Do Not Call Registry?
Telemarketers selling home safety equipment
An insurance company that transfers risk to another company is called
The ceding company
All of the following are true about a stock insurance company EXCEPT
Their policyholders vote for the members of the board of directors
If an insurer wants to obtain an HIV test from an applicant
They must obtain the applicant's written consent
An applicant submitted an application to an insurer without an initial premium. This is considered
An invitation to make an offer
A change in the premium due to a rate-up would normally be discussed with a client
At the time of policy delivery
John applies for a life insurance policy, gives the agent the first months' premium and receives a conditional receipt. Before John receives his policy, he dies in a car accident. Which of the following scenarios best describes the insurance company's course of action?
They will pay the claim as long as he would have been approved for the plan, coverage and premium rate he applied for
If one party in a contract gives a legally enforceable promise, but not the other, it is called a
Unilateral contract