AETNA INDIVIDUAL CORE CERTIFICATION
MASTERY TEST TEST BANK 2026 UPDATED
QUESTIONS AND 100% CORRECT ANSWERS
GRADED A+
⩥ what are consumers willing to give up in exchange for simplified
underwriting? Answer: personal data
⩥ there will be an eventual shift to what kind of underwriting?. Answer:
continuous
-more data on lifestyle, health and environment, and medical data
⩥ buyer ignorance. Answer: consumers have a lack of info and expertise
to understand the details of the policy or the product being sold
⩥ adverse selection. Answer: consumer has the most knowledge of their
own personal risks
⩥ moral hazard. Answer: self-interested behavior
⩥ contracts of utmost good faith. Answer: each party is entitled to rely in
good faith with representations and both parties should not deceive each
other or withhold information
,⩥ contracts of adhesion. Answer: terms and conditions fixed by insurer.
concerns are resolved in favor of the policyholder because the insurer
drafts the policy and is assumed to be more sophisticated
⩥ valued policies. Answer: the insurer agrees to pay a specific sum
regardless of actual economic loss
⩥ conditional contract. Answer: the insurer's obligation to pay is
contingent on the payment of premiums and proof of death
⩥ conditional contracts protect the insurer from what?. Answer: moral
hazard
⩥ unilateral contract. Answer: only the insurer makes a legally
enforceable promise. the insured does not make a promise to pay
premiums, but if the insured does pay than the insurer will give them a
payout upon death
⩥ aleatory. Answer: outcomes are governed by chance and one party
may obtain more than the other
⩥ commutative. Answer: parties agree to the values they will exchange
in advance
,⩥ what are the 4 criteria required to form a life insurance contract?.
Answer: 1. legal capacity
2. mutual assent
3. consideration
4. legal/lawful purpose & insurable interest
⩥ legal (contractual) capacity. Answer: to issue a contract, the
corporation has to be licensed and authorized to do business in a
particular jurisdiction
⩥ who does not have contractual capacity?. Answer: minors: voidable
mental capacity: void (incompetence) voidable (impaired)
⩥ void. Answer: never legally valid to begin with
⩥ voidable. Answer: could be legal once defects are corrected
⩥ mutual assent. Answer: "meeting of the minds"
-generally expressed by signing a written agreement
-offer by one party and acceptance by another
⩥ legally adequate consideration. Answer: -both parties must promise to
give something of value to the other party
, -premium is exchanged in return for the promise to pay policy benefits
⩥ lawful purpose. Answer: -cannot have anything illegal as part of
consideration
⩥ insurable interest. Answer: -requirement for contract
-does not come into play after the policy is issued
⩥ Misrepresentation. Answer: giving a false statement
⩥ concealment. Answer: withholding information
⩥ the misrepresentation must be material
material:. Answer: capable of influencing the decision of the decision
maker
-if the info would have resulted in higher premiums, different policy, or
non-issuance of the policy
⩥ presumption of death. Answer: 1. if the person has not been heard
from for 7 years
2. the absence is unexplained
MASTERY TEST TEST BANK 2026 UPDATED
QUESTIONS AND 100% CORRECT ANSWERS
GRADED A+
⩥ what are consumers willing to give up in exchange for simplified
underwriting? Answer: personal data
⩥ there will be an eventual shift to what kind of underwriting?. Answer:
continuous
-more data on lifestyle, health and environment, and medical data
⩥ buyer ignorance. Answer: consumers have a lack of info and expertise
to understand the details of the policy or the product being sold
⩥ adverse selection. Answer: consumer has the most knowledge of their
own personal risks
⩥ moral hazard. Answer: self-interested behavior
⩥ contracts of utmost good faith. Answer: each party is entitled to rely in
good faith with representations and both parties should not deceive each
other or withhold information
,⩥ contracts of adhesion. Answer: terms and conditions fixed by insurer.
concerns are resolved in favor of the policyholder because the insurer
drafts the policy and is assumed to be more sophisticated
⩥ valued policies. Answer: the insurer agrees to pay a specific sum
regardless of actual economic loss
⩥ conditional contract. Answer: the insurer's obligation to pay is
contingent on the payment of premiums and proof of death
⩥ conditional contracts protect the insurer from what?. Answer: moral
hazard
⩥ unilateral contract. Answer: only the insurer makes a legally
enforceable promise. the insured does not make a promise to pay
premiums, but if the insured does pay than the insurer will give them a
payout upon death
⩥ aleatory. Answer: outcomes are governed by chance and one party
may obtain more than the other
⩥ commutative. Answer: parties agree to the values they will exchange
in advance
,⩥ what are the 4 criteria required to form a life insurance contract?.
Answer: 1. legal capacity
2. mutual assent
3. consideration
4. legal/lawful purpose & insurable interest
⩥ legal (contractual) capacity. Answer: to issue a contract, the
corporation has to be licensed and authorized to do business in a
particular jurisdiction
⩥ who does not have contractual capacity?. Answer: minors: voidable
mental capacity: void (incompetence) voidable (impaired)
⩥ void. Answer: never legally valid to begin with
⩥ voidable. Answer: could be legal once defects are corrected
⩥ mutual assent. Answer: "meeting of the minds"
-generally expressed by signing a written agreement
-offer by one party and acceptance by another
⩥ legally adequate consideration. Answer: -both parties must promise to
give something of value to the other party
, -premium is exchanged in return for the promise to pay policy benefits
⩥ lawful purpose. Answer: -cannot have anything illegal as part of
consideration
⩥ insurable interest. Answer: -requirement for contract
-does not come into play after the policy is issued
⩥ Misrepresentation. Answer: giving a false statement
⩥ concealment. Answer: withholding information
⩥ the misrepresentation must be material
material:. Answer: capable of influencing the decision of the decision
maker
-if the info would have resulted in higher premiums, different policy, or
non-issuance of the policy
⩥ presumption of death. Answer: 1. if the person has not been heard
from for 7 years
2. the absence is unexplained
