Oklahoma Insurance Producer Test Prep-Life Health and Accident-Contract Law

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Author:
hicksmix6
ID:
305914
Filename:
Oklahoma Insurance Producer Test Prep-Life Health and Accident-Contract Law
Updated:
2015-08-04 12:51:08
Tags:
Oklahoma
Folders:
insurance
Description:
L-7
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  1. Statements made on an application of insurance are considered:
    a. warranties
    b. representations
    c. guarantees
    d. misrepresentations
    b. representations
  2. A person, who gather information, analyzes exposures, and selects risk for the insurer is called a(n):
    a. actuary
    b. producer
    c. underwriter
    d. insurance commissioner
    c. underwriter
  3. All of the following are essential elements of a legal binding contract EXCEPT?
    a. competent parties
    b. offer and acceptance
    c. signatures
    d. trade of value
    c. signatures
  4. The portion of the rate which is projected to be paid out in insurance benefits is called:
    a. prospective lost cost
    b. proposed claims cost
    c. protracted claims cost
    d. perceived cost of doing business
    a. prospective lost cost
  5. Which of following would be considered competent to enter into a contract?
    a. person committed to a mental hospital
    b. Girl Scout, age 11, selling Girl Scout cookies
    c. a person intoxicated
    d. person confined to hospital due to a heart attack
    d. person confined to hospital due to a heart attack
  6. If an applicant for life insurance lies on the application regarding a material fact, it is called?
    a. concealment
    b. fiduciary failure
    c. representation
    d. fraud
    d. fraud
  7. When one party constructs the contract and the other party has no input, it is known as a(n):
    a. contract of adhesion
    b. offer and acceptance
    c. unilateral contract
    d. conditional contract
    a. contract of adhesion
  8. A unique feature of an insurance contract where one party can benefit more than the other based on the occurrence of an uncertain event is referred to as:
    a. contract of indemnity
    b. contract of adhesion
    c. unilateral contract
    d. aleatory contract
    d. aleatory contract
  9. An applicant for insurance who intentionally fails to disclose a material fact is called:
    a. concealment
    b. misrepresentation
    c. representation
    d. aleatory statement
    a. concealment
  10. A life insurance policy is a contract of adhesion.  Therefore any ambiguity in the contract would be in favor of who?
    a. insurer
    b. insured
    c. underwriter
    d. producer
    b. insured
  11. John Johnson is in the hospital because of a heart attack.  The $1000 deductible John must pay is an example of which risk management technique?
    a. retention
    b. transfer
    c. avoidance
    d. loss control
    a. retention
  12. John Madden, the famous football announcer, refuses to fly for fear of being injured in an aircraft accident.  Which risk management technique is John using for refusing to fly?
    a. retention
    b. transfer
    c. avoidance
    d. loss control
    c. avoidance
  13. Life insurance is based on attained age at the time of application.  Attained age is:
    a. date of birth
    b. date
    c. current age
    d. age 65
    c. current age
  14. All of the following are essential elements of a legal binding contract, EXCEPT?
    a. legal purpose
    b. competent parties
    c. trade of value
    d. signatures
    d. signatures

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