Chapter 1 - 7 Missed Q Review

Both parties must perform specified duties in order for the contract to be enforceable. This describes what?

• Unilateral Contract

• Aleatory Contract

• Conditional Contract

• Contract of adhesion

In a legal sense, premium functions as the insured's consideration

• True

• False

The insurance industry is primarily regulated at the state level

• True

• False

An insurer that is authorized to do business in this state MUST be

• An admitted insurer

• Domestic Insurer

• A non-admitted insurer

• Alien insurer

The State's __________ branch enforces the existing statutes that have been put in place.

Which principle states that an insured may be reimbursed up to the amount of the actual loss?

• Agreement

• Consideration

• Legal Purpose

• Indemnity

Life insurance reduce financial loss upon the insured's death by transferring the risk to the _______

___________is the process of selection, classification and rating, and determining if someone is insurable

• Home office underwriting

• Application

• Attending Physician Statement

• Inspection Report

To convert a term policy to a permanent policy as of the original issue age, all of the following must occur, except:

• The cash values have to be paid out first before conversion can be effected

• The premiums will be higher than the original policy

• back premiums plus interest required to be paid at time of conversion.

• must be a term policy, not a whole life policy

All of the following are correct pertaining to Decreasing Term, except:

• The premium declines throughout the term of the policy

• If the insured dies, the proceeds of the policy used to pay off mortgage.

• The death benefit decreases, but premiums remain level for the policy term.

• sold as mortgage protection, amount of insurance decrease as mort. decrease