CH5 VA State and Health Exam Questions & Answers 100% Accurate

When an insured makes truthful statements on the application for insurance and pays the required premium, it is known as which of the following? A) Acceptance B) Consideration C) Legal purpose D) Contract of adhesion - ANSWER-B) Consideration Under what conditions would a contract between an insurer and prospective insured be legal? A) The applicant has been convicted of a felony B) The applicant is drunk at the time of application C) The applicant is a 12-year-old student D) The applicant is high on methamphetamine's at the time of application. - ANSWER-A) The applicant has been convicted of a felony Insurable interest can be best described by which of the following? A) The applicant must experience a financial loss due to an accident or sickness that befalls the insured. B) The insured must be genuinely interest in the life of the applicant C) All beneficiaries need to have notification of their status. D) It is not necessary for the insured to be aware of the insurable interest or give permission for the insurance that is to be written - ANSWER-A) The applicant must experience a financial loss due to an accident or sickness that befalls the insured. In forming an insurance contract, when does acceptance usually occur? A) When an insurer receives and application B) When an insurer accepts an application C) When an insurer approves a prepaid application D) When an insured receives the policy - ANSWER-C) When an insurer approves a prepaid application