LIFE 5

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Anonymous
ID:
271401
Filename:
LIFE 5
Updated:
2014-04-21 20:39:16
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LIFE
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Description:
LIFE STUDY GUIDE
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  1. An applicant submits an application with the first premium payment. The company issues a rated policy along with a bill for the difference in premium. The company's response is an example of a/an?
    Counteroffer
  2. Which element of contract law requires that all parties be of sound mind, sober, and the age of majority to form a contract?
    Legally competent parties
  3. A policy's coverage becomes effective when?
    The policy is physically delivered to the applicant, assuming the premium has been paid.
  4. Mr. Z submits an application with premium to his life insurance producer. The producer gives Mr. Z a conditional receipt . Prior to the time Mr. Z takes a medical examination, he is considered to be?
    Uninsured
  5. An agent is asked to sell a Life Insurance policy with a minor as the insured. The agent should:
    Have the minor Insured's parent or guardian sign the application
  6. A statement of continued good health is used in which of the following situations?
    When the policy is delivered and no conditional receipt was issued
  7. The inability of an Insured to negotiate any changes in the policy language relates to the concept of?
    Adhesion
  8. Which of the following is required for an insurable interest to exist?
    The applicant must be in a position to lose something of value
  9. Assume that no conditional receipt is used. If the premium has been paid and the medical exam taken, a policy's coverage becomes effective when?
    The policy is physically delivered to the applicant.
  10. When must an insurable interest exist for Life and Health Insurance?
    At the inception of the policy
  11. Which document is signed to initiate coverage if no conditional receipt is used?
    The statement of continued good health
  12. Ms. L applies for life insurance but does not make an initial premium payment. Her actions constitute?
    An invitation to negotiate for the purchase of life insurance
  13. Mr. T applies for life insurance but does not make an initial premium payment. Coverage will be effective when?
    The Insurer delivers the policy and the applicant pays the premium
  14. An applicant has an insurable interest in each of what?
    • Business partners ask to purchase life insurance on each other
    • Parents ask to insure their child
    • A business wants to purchase life insurance covering a key employee
  15. Exchanging something of value is known as?
    Consideration
  16. Under an insurance policy, either the Insurer or the Insured may receive disproportionate payment under the concept of:
    Aleatory
  17. A conditional receipt accomplishes what?
    Allows retroactive coverage in some situations
  18. Sally wants to buy Life Insurance covering Mike. Which of the following statements is true?
    Sally needs to have an insurable interest in Mike and obtain Mike's consent on the policy application
  19. What happens if a Conditional Receipt is used?
    The policy may become effective prior to delivery
  20. The Insured died six months after a life policy was delivered. The Insurer discovered that the application was incomplete and not signed by the applicant. The Insurer will do which of the following?
    Pay the claim
  21. An applicant submits an application with the first premium payment. This constitutes a/an?
    Offer
  22. An applicant submits an application without the first premium payment. This constitutes a/an?
    Invitation
  23. Ms. Y lied about material facts on her life insurance application but the insurance company did not discover the lie until Y died 3 years later. What will the company do?
    Pay the claim
  24. The 10-Day Free Look provision is initiated by the:
    Delivery Receipt
  25. If a conditional receipt is used:
    The policy may become effective prior to delivery
  26. An insurance policy will lead to the payment of a claim only if the Insured pays the premium and notifies the Insurer of the loss. This relates to the contract concept of?
    Conditional
  27. A business insures its key executive. This is an example of?
    Third Party Ownership
  28. Unilateral means:
    Only one party to the contract makes a legally enforceable promise
  29. Which policy section specifies the amount of the premium?
    Consideration Clause
  30. An applicant submits a premium with the application. The purpose of having the producer deliver the policy to the applicant is to?
    Accept an offer
  31. Cheap shot question: A statement on a Life or Health application that is guaranteed to be absolutely true is a/an?
    Representation
  32. A life insurance applicant gives consideration to the Insurer in return for?
    The Insurer’s promise to pay a claim
  33. Which of the following individuals will NOT need to sign an application?
    Beneficiary
  34. Who needs to sign an application?
    • Insured
    • Applicant
    • Insurance Agent

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