RMIN 4000 Test 3 Brown Questions And Answers Rated A+ New Update Assured Satisfaction

RMIN 4000 Test 3 Brown Actual Cash Value - replacement cost - depreciation in property ins, usually based on the actual cash value of the property at the time of loss Additional Insured - a person or party who is added to the named insured's policy by an endorsement Advantages of Group Insurance - -may be less expensive -tax benefits to employees (costs are usually pre tax) -employer may pay all/part of premium -no evidence of insurability -may get insurance you wouldn't have normally bought Advantages of universal life insurance - -flexibility in payments -cash withdrawals are permitted -favorable tax benefits (death benefit is normally tax free) advantages of whole life insurance - • Covers the entire life of the insured • Living benefits - cash value and policy loans • Fixed premiums aggregate deductible - The amount an insured is responsible for in total for the policy period before the insurer pays anything - Common for health insurance Aleatory Contract - a contract where the values exchanged may not be equal but depend on an uncertain event Bad faith damages can exceed policy limits and include: - -attorney's fees -emotional distress -punitive damages Basic part of an insurance contracts - declarations, definitions, insuring agreement, exclusions, conditions, endorsements Cash Surrender Value - the amount paid to a policyholder who surrenders the policy early cash value life insurance - part insurance and part investment, in which you can borrow money against the total amount of premiums paid Coinsurance in health insurance - a provision that requires the insured to pay a specified percentage of covered medical expenses in excess of the deductible Coinsurance in Property Insurance - Requires the insured to insure the property to a stated percentage of its insurable value If not, insured must share in the loss Payment will never exceed the limit of coverage Payment will never exceed the amount of the loss Competent Parties - Those who are legally capable of entering into contracts. must be: old enough to enter into contract, not be intoxicated, not be insane concealment - intentional failure of the applicant for insurance to reveal a material fact to the insurer Conditional contract - the insured must comply with all policy conditions to collect for a covered loss