XCEL CHAPTER 3 EXAM QUESTIONS WITH COMPLETE SOLUTIONS VERIFIED

XCEL CHAPTER 3 EXAM QUESTIONS WITH COMPLETE

SOLUTIONS VERIFIED


Which contract element is insurable interest a component of?

A. Competent parties

B. Offer and acceptance

C. Consideration

D. Legal purpose

Legal purpose

In an insurance contract, the element that shows each party is giving something

of value is called?

A. offer

B. acceptance

C. consideration

D. purpose

Consideration

What makes an insurance policy a unilateral contract?

A. Only the insured pays the premium

B. Only the insured can change the provisions

C. Only the insurer is legally bound

D. Only the insured is legally bound

Only the insurer is legally bound

, The authority granted to a licensed producer is provided via the?

A. producer's apparent authority

B. written contract

C. Law of Agency

D. Principal Capacity

Law of Agency

Legal purpose is a term used in contract law meaning?

A. there must be an offer and acceptance

B. the contract must be aleatory

C. there must be legal reasons for entering into the contract

D. the contract must be a contract of adhesion

There must be legal reasons for entering into the contract

All of the following are elements of an insurance policy EXCEPT?

A. definitions

B. other insurance

C. claim forms

D. conditions

claim forms

According to life insurance contract law, insurable interest exists?

A. when any business relationship exists

B. at the time of application

C. at the time of death

D. only when determined by a judge