LIFE AND HEALTH INSURANCE Study guides, Class notes & Summaries

Application - Which of the following is the basic source of information used by the company in the risk selection process? The beneficiary would receive $25,000 if it was determined that the insured qualified for the policy. - An applicant signs an application for a $25,000 life insurance policy, pays the initial premium, and receives a conditional receipt. If the applicant is killed in an automobile accident the next day, Calls on behalf of tax-exempt nonprofit organizations, Calls fo...

An insured pays a $100 premium every month for his insurance coverage, yet the insurer promises to pay $10,000 for a covered loss. What characteristic of an insurance contract does this describe? - Aleatory: an aleatory contract means unequal amounts are exchanged between payments and benefits What is the Federal Credit Reporting Act? - Establishes procedures that consumer-reporting agencies must follow in order to ensure that records are confidential, accurate, relevant, and properly used....

Life and Health Insurance Exam (Missouri) | 100 Questions and Correct Solution 2024 Insurance policies are considered aleatory contracts because: 1)they are take it or leave it contracts 2)both parties consent to the contract 3)performance is conditioned upon a future occurence 4)the contract is voidable upon proof of fraud - Answer -Performance is conditioned upon a future occurence, because there is an element of chance and potential for unequal exchange of value K failed to pay a rene...

Insurance policies are considered aleatory contracts because: 1)they are take it or leave it contracts 2)both parties consent to the contract 3)performance is conditioned upon a future occurence 4)the contract is voidable upon proof of fraud - ANSWER-Performance is conditioned upon a future occurence, because there is an element of chance and potential for unequal exchange of value K failed to pay a renewal premium within the time granted by the insurer. K then sends in a payment which th...

Life and Health Insurance Exam Update Life & Health Insurance Final Exam Test Questions and Correct Answers Rated A+

Wisconsin Life Insurance Exam|Latest Update Graded A+ Mortality The rate people will die Morbidity The rate people will get sick Peril The cause of loss and the event insured against. Ex: premature death, dependency during old age, accident, and sickness Adverse Selection The tendency for poorer than average risks to seek out insurance Annuity Annuities protect against the risk of living longer than expected. Annuities provide a guaranteed life income to protect agains...

Wisconsin Life Insurance Exam|Latest Update Graded A+ Cross Purchase Plans Agreements that provide that upon a business owner's death, surviving owners will purchase the deceased's interest, often with funds from life insurance policies owned by each principal on the lives of all other principals. Entity Plans Agreements in which a business assumes the obligation of purchasing a deceased owner's interest in the business, thereby proportionately increasing the interests of surviving ow...

Wisconsin Life Insurance Course Exam Questions With Answers Graded A+ Stock Companies -private organization focused to make profits for shareholders -Stock dividends are paid to stock holders -policyholders do not participate Mutual Companies -have no stock holders -owners are policy owners -policy holders can vote for members of the board -policy owners receive dividends Lloyd's of London -A syndicate of individuals who underwrite insurance Reinsurers -are a specialize...

Life & Health Insurance Exam With Complete Solutions Graded A+ Insurance - Is a contract that transfers the risk of financial loss from an individual or business to an insurer. In return, the insurer agrees to cover the individual or business for certain losses if they occur. - state run Peril What more so directly caused the loss, for example: fire, wind, theft, and water. Hazard Something that can increase the chance of a loss occurring. There remains three types of hazards: m...