Georgia Life Insurance Exam Ch. 2

A life insurance arrangement that circumvents insurable interest statutes is called:

• contract of adhesion

• an indemnity contract

• key person insurance

• investor-originated life insurance

Insurance policies are considered aleatory contracts because

• they are "take it or leave it" contracts

• both parties consent to the contract

• performance is conditioned upon a future occurrence

• the contract is voidable upon proof of fraud

When must insurable interest be present in order for a life insurance policy be valid?

• When the insured dies

• Within the incontestability period

• When the application is made

• Before the insured dies

A contract where one party either accepts or rejects the terms of a contract written by another party is called a contract of

• adherence

• assimilation

• aleatory

• adhesion

A life insurance policy would be considered a wagering contract without

• insurable interest

• premium payment

• agent solicitation

• constructive delivery

The exchange of unequal values reflects which of the following insurance contract features?

• Aleatory

• Adhesion

• Unilateral

• Consideration

When must insurable interest exist for a life insurance contract to be valid?

• inception of the contract

• throughout the entire length of the contract

• when the insured dies

• during the contestable period

What is the consideration given by an insurer in the Consideration clause of a life policy?

• promise to never cancel coverage

• promise to pay a death benefit to a named beneficiary

• promise to not raise premiums

• promise to accept an insured assignment of benefits

A policy of adhesion can only be modified by whom?

• the agent

• the applicant

• the primary beneficiary

• the insurance company

Insurance policies are offered on a "take it or leave it" basis, which make them:

• Conditional contracts

• Aleatory contracts

• Unilateral contracts

• Contracts of adhesion