What are the causes of loss insured against in an insurance policy?
Perils are the causes of loss insured against in an insurance policy.
When both parties to a contract must perform certain duties and follow rules of conduct?
Cards
| Term Cafeteria Plan | Definition A selection of health care benefits from which an employee may choose the ones that he/she needs. |
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| Term Conditional Contract | Definition A type of an agreement in which both parties must perform certain duties and follow rules of conduct to make the contract enforceable. |
Which of the following principles describes restoring the insured to his or her original financial status after a loss?
A whole life policy. Which of the following principles describes restoring the insured to his or her original financial status after a loss? Indemnity. A person with no insurable interest in the insured purchases a life policy.
Which of the following must an insurer obtain in order to transact insurance within a given state?
Stack #655450
| Question | Answer |
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| What of the following must an alien insurer obtain in order to transact insurance within a given state? | Certificate of Authority |
| All of the following statements are true EXCEPT | Social Insurance seeks to be equitable. |
What is the correct insurance term for a statement that is guaranteed to be true?
A warranty in insurance is a statement guaranteed to be true. When an applicant is applying for an insurance contract, the statements he or she makes are generally not warranties, but representations.
Which of the following is a statement that is guaranteed to be true and if untrue may reach an insurance contract?
An insured wants to transfer his personal insurance policy to a friend. Which of the following is a statement that is guaranteed to be true, and if untrue may breach an insurance contract? Warranty. in insurance is a statement guaranteed to be true.
Is a warranty guaranteed to be true?
Guarantee. A warranty is a guarantee of the integrity of a product and of the maker’s responsibility for it. In a sense, guarantee is the more general term and warranty is the more specific (that is, written and legal) term.
Which is an example of an unfair claims settlement practice?
Typical Example of Unfair Claims Practice The insurance company delays payment, rendering the business owner unable to repair any of the damage. The insurance company continues using delay tactics to avoiding making a payment. For example, the claims representative keeps “forgetting” to send the claim forms.
When an insured makes a truthful statement?
When an insured makes truthful statements on the application for insurance and pays the required premium, it is known as what? Consideration. And insurance contract requires that both the insured and the insurer meet certain conditions in order for the contract to be enforceable.
What type of policy that can be changed from one that does not accumulate cash value to the one that does is a?
The type of policy that can be changed from one that does not accumulate cash value to one that does, is a: Convertible Term Policy.
Which of the following is the basis for a claim against an insurance policy?
Which of the following is the basis for a claim against an insurance policy? Damage to a third-party property for which the insured is legally liable.
What insurance policies are not drawn up through negotiations?
Insurance policies are not drawn up through negotiations, and an insured has little to say about its provisions. In other words, insurance contracts are offered on a “take-it-or-leave-it” basis by an insurer. In a unilateral contract, only one of the parties to the contract is legally bound to do anything.
What is the grace period of an insurance policy?
An insurance grace period is a defined amount of time after the premium is due in which a policyholder can make a premium payment without coverage lapsing. The insurance grace period can vary depending on the insurer and policy type.
What is the price of insurance for each exposure unit?
A rate is the price per unit of insurance for each exposure unit, which is a unit of liability or property with similar characteristics. For instance, in property and casualty insurance, the exposure unit is typically equal to $100 of property value, and liability is measured in $1,000 units.
Which of the following riders would not cause the death benefit to increase?
Payor Benefit Rider does not increase the Death Benefit; it only pays the premium if the payor is disabled or dies.
What causes death benefit to increase?
Adding a cost of living rider means the insurer will increase your death benefit each year, or every few years, to keep pace with inflation.
What is the benefit of choosing extended term as a non forfeiture option?
Choosing the nonforfeiture extended term option allows the policy owner to use the cash value to purchase a term insurance policy with a death benefit equal to that of the original whole-life policy. The policy is calculated from the insured’s attained age.
Which Nonforfeiture option is the highest amount protection?
Which nonforfeiture option has the highest amount of insurance protection? The Extended Term nonforfeiture option has the same face amount as the original policy, but for a shorter period of time.
What is the advantage of reinstating a policy instead of applying for a new one?
What is the advantage of reinstating a life insurance policy as opposed to applying for a new one? Policy premium in a reinstated policy will be set according to the insured’s original age.
What is the purpose of a settlement options?
Settlement Options — in life insurance, how proceeds are paid to the designated beneficiaries. Most life insurance policies provide for payment in a lump sum.
Which of the following applies to the 10 day free look privilege?
which of the following applies to the 10-day free-look privilege? it permits the insured to return the policy for a full refund of premiums paid. At age 47, the insured decides to cancel his policy and exercise the extended term option for the policy’s cash value, which is currently $20,000.
What are the two components of a universal policy?
How Does Universal Life Insurance Work? Universal policy premiums include two components: the cost of insurance amount and the savings component amount, also known as the cash value.
Which of the following is the best reason to purchase life insurance rather than annuities?
Based on those very simplistic explanations, the best reason for purchasing life insurance rather than annuities would be to provide for your loved ones if you do not have much saved up. With life insurance, you gain an instant legacy. After that first premium is paid, should you die, your heirs have an instant estate.
Is it possible to get the full payment on Cancelling the new policy in free look period?
A free look period often lasts 10 or more days (depending on the insurer), allowing the contract holder to decide whether or not to keep the insurance policy; if they are not satisfied and wish to cancel, the policy purchaser can receive a full refund.
Can I cancel my insurance policy the same day?
Most car insurance policies state that you can cancel your policy at any time. You only need to send a written notice with the effective date of cancellation. It is always a good idea (and in most cases a requirement) to notify your old insurer when you switch to a new insurer.
What is look in cancellation?
And if his queries are not answered satisfactorily or he has been mis sold a Life Insurance Policy or he does not agree with the Terms and conditions as mentioned in the Policy Documents, then he can cancel the policy without any charges or fine. This is called Free look Cancellation.
Is insurance coverage in effect during free look period?
(1) Free Look Period is available for all Life Insurance policies.
Which of the following is true about a 10 day free look period in life insurance policy?
Which of the following is TRUE about the 10-day free-look period in a Life Insurance policy? The policy will terminate when the cash value is reduced to nothing. The paid-up addition option uses the dividend. To purchase a smaller amount of the same type of insurance as the original policy.
What is the free look period for insurance policies?
(1) Free Look Period is available for all Life Insurance policies. For Health policies a term of at least three years is a must….Free-Look Period.
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How do you surrender in a free look period?
3) Cancel policy through insurer There have been instances where agents have withheld documents so that the free-look period expires. Call up the insurer’s customer care to communicate your decision to cancel the policy. You should visit the insurer’s office to submit your policy cancellation application.