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Life & Health Insurance: Application, Underwriting, and Policy Delivery, Exams of Nursing

A comprehensive overview of key concepts in life and health insurance, focusing on the application process, underwriting, and policy delivery. It includes multiple-choice questions and answers covering topics such as insurable interest, risk, hazards, types of insurers, and the role of agents. This resource is valuable for students and professionals seeking to understand the fundamentals of life and health insurance.

Typology: Exams

2024/2025

Available from 01/24/2025

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Exam FX Life and Health - General
Insurance / Completing Application,
Underwriting and Delivering the Policy
100% Solved
What two elements are necessary to a life insurance contract to have a legal purpose? ✔✔1.
Insurable Interest
2. Consent
Insurance is a contract that protects the insured from what? ✔✔Loss
What Type of Risk is Insurable? ✔✔Pure
What is the term for the causes of loss insured against in a insurance policy? ✔✔Peril
What Law Protects Consumers from the circulation of inaccurate or obsolete information?
✔✔The Fair Credit Reporting Act
What are the three types of hazards? ✔✔1. Physical
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Exam FX Life and Health - General

Insurance / Completing Application,

Underwriting and Delivering the Policy

100% Solved

What two elements are necessary to a life insurance contract to have a legal purpose? ✔✔1. Insurable Interest

  1. Consent

Insurance is a contract that protects the insured from what? ✔✔Loss

What Type of Risk is Insurable? ✔✔Pure

What is the term for the causes of loss insured against in a insurance policy? ✔✔Peril

What Law Protects Consumers from the circulation of inaccurate or obsolete information? ✔✔The Fair Credit Reporting Act

What are the three types of hazards? ✔✔1. Physical

  1. Moral
  2. Morale

In forming an insurance contract, when does an acceptance usually occur? ✔✔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? ✔✔Foreign

A state-issued document empowering an insurance company to become an admitted insurer is called what? ✔✔Certificate of Authority

What entities make up the Medical Information Bureau? ✔✔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? ✔✔Fraternal Insurers

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? ✔✔Mutual

In insurance, when is the offer usually made on a contract? ✔✔When insurance application is submitted.

The type of insurance company organized to return any surplus money to its policyholders is known as what? ✔✔Mutual Company

What law is the foundation of the statistical prediction of loss upon which rates for insurance are calculated? ✔✔Law of large numbers

When does an insurance policy go into effect? ✔✔When the policy is delivered and the premium is paid?

For the purpose of the insurance, what is risk? ✔✔Uncertainty of Loss

What is the name of the process that insurance companies use to determine whether or now an application is insured? ✔✔Underwriting

The person who does not lock the doors to his or her house shows an indifferent attitude. This person presents what type of hazard? ✔✔Morale

According to Law of Agency, a principal is represented by whom? ✔✔Agent or Producer

What are the five characteristics of an ideally insurable risk? ✔✔Loss Must Be

  1. Due to Chance
  2. Definite and Measurable
  3. Statistically Predictable
  4. Not Catastrophic
  5. Coverage cannot be mandatory

Whom doe an insurance agent represent? ✔✔Insurance Company

The insurer organized to return a profit to the stockholders is what of insurer? ✔✔Stock Company

The reduction, decrease, or disappearance of value of the person or property insured in a policy is known as what? ✔✔Loss

When a change needs to be made on the application for insurance, which is the best method of correcting the information? ✔✔Complete a new application or ask the applicant to initial the correction on the original application.

What are the strategies used by underwriters to prevent adverse selection? ✔✔Restriction of coverage, refusal to accept a risk, and accepting a risk at a higher rate.

What type of insurer is formed under the law of another country? ✔✔Alien

If an applicant does not receive his or her insurance policy, who would be held responsible? ✔✔The agent

Who owns stick companies? ✔✔Stockholders

What are the four elements of an insurance contract? ✔✔Agreement (offer and acceptance), consideration, competent parties, and legal purpose.

What are the three types of agent authority? ✔✔Express, Implied, and Apparent

When risks with higher probability of loss are seeking insurance more often than other risks, this is known as what? ✔✔Adverse Selection

Insurers are classified according to their domicile. What are the three types of insurers? ✔✔Domestic, foreign, and alien.

In order to transact insurance within a given state, an alien insurer must first obtain what? ✔✔Certificate of Authority

Wagering on a sporting event is known as what type of risk? ✔✔Speculative

An insurance company that is formed under the laws of another state is known as what type of insurer? ✔✔Foreign