What two elements are necessary to a life insurance contract to have a legal purpose? correct answer: 1. Insurable Interest
2. Consent
Insurance is a
... [Show More] contract that protects the insured from what? correct answer: Loss
What Type of Risk is Insurable? correct answer: Pure
What is the term for the causes of loss insured against in a insurance policy? correct answer: Peril
What Law Protects Consumers from the circulation of inaccurate or obsolete information? correct answer: The Fair Credit Reporting Act
What are the three types of hazards? correct answer: 1. Physical
2. Moral
3. Morale
In forming an insurance contract, when does an acceptance usually occur? correct answer: When the insurer approves a prepaid application
An insurance company domiciled in California and transacts insurance in Nevada. What is this insurer's classification in Nevada? correct answer: Foreign
A state-issued document empowering an insurance company to become an admitted insurer is called what? correct answer: Certificate of Authority
What entities make up the Medical Information Bureau? correct answer: Insurers
What type of insurer is a voluntarily formed organization that provides insurance benefits for members of an affiliated lodge or religious organization with representative form of governtment? correct answer: Fraternal Insurers
When would a misrepresentation on an insurance applications be considered fraud? correct answer: When it is intentional and material
Insurance is used to transfer what to the insurance company? correct answer: Financial responsibility of loss.
What type of report provides information about the applicant's hobbies, habits, and financial status? correct answer: Inspection report
If agent fails to obtain the applicant's signature on the insurance application, what must the insurer do? correct answer: Send application back to the applicant for signature.
If an insurer needs to obtain information about the application from investigators, wha is the insurer required to do? correct answer: Provide applicant a Disclosure Authorization Notice
When agents act within the scope of their contract, their actions will be assumed to be the acts of whom? correct answer: Insurer
What do individuals use to transfer their risk of loss to a larger group? correct answer: Insurance
What insurance policy paid a nontaxable dividend to the insured one year, and nothing the next. From what type of insurer did the insured purchase the policy? correct answer: Mutual
In insurance, when is the offer usually made on a contract? correct answer: When insurance application is submitted. [Show Less]