What is insurance? - correct answer ✔✔The transfer of the risk of loss from the individual or business entity to an insurance company
What is
... [Show More] included under the term insurance transaction? - correct answer ✔✔Solicitation, negotiating prior to execution of a contract, execution of a contract, and the transaction of any matters that arise as a result of the contract, as well as the actual process of insuring.
What is the difference between an authorized/admitted and unauthorized/nonadmitted insurer? - correct answer ✔✔An admitted or authorized insurer is qualified and received a Certificate of Authority from the Department of Insurance to transact insurance in the state. A nonadmitted or nonauthorized insurer is an insurance company that has not applied for, or has been denied a Certificate of Authority and may not transact insurance.
What are the four elements of an insurance contract? - correct answer ✔✔AGREEMENT- offer/acceptance, consideration, competent parties, legal purpose
What does representation mean and how does it differ from a warranty? - correct answer ✔✔Representations are statements believed to be true to the best of one's knowledge. A warranty is an absolutely true statement upon which the validity of the insurance policy depends.
What information is gathered in Parts 1 & 2 of the application? - correct answer ✔✔Part 1 of the application includes the general questions about the applicant, including name, age, address, birth date, gender, income, marital status, and occupation. Part 2 includes medical information about prospective insured.
What is the purpose of the agent's report? - correct answer ✔✔The agent's (producer's) report is used by the agent to discuss his or her personal observations concerning the proposed insured.
Who is required to sign an application for life insurance? - correct answer ✔✔Both the agent and the proposed insured (usually the applicant) must sign the application
When does the insurance policy go in effect? - correct answer ✔✔The policy will go into effect when the first premium is paid and the policy has been delivered [Show Less]