Mi Variable life and annuities || 100% Error-free Answers.
Consideration correct answers The insured's consideration is the payment of a premium or
promise to pay plus the agreement to bide by the conditions of the contract. The insurer's
promise to indemnify in the event of a loss is its consideration.
Contract of adhesion correct answers One party writes the contract without input from the other
party. The insurer prepares the contract and present it to the other party/applicant on a take it or
leave it basis without negotiation. Any doubt or ambiguity found in the document is considered
in favor of the party that did not write it (insured)
Aleatory contract correct answers The exchange of value is unequal. Insurance premium
payment is less than potential benefit to be received in the event of a loss. The insurance
payment in the event of a loss may be greater, or much less, then the insurance premium
payment.
Personal contract correct answers A contract between the insurance company and the individual.
Personal contracts are specific to the person insured at the time the contract is formed. The
owner and the insured cannot be changed without the consent of the insurance company. A
property and casualty insurance contract is personal since it cannot be assigned. Life insurance is
not a personal contract. The policy can be assigned or a new owner may be named as long as the
insurer is notified of the change.
Unilateral contract correct answers Only one party is legally bound to the contractual obligations
after the premium is paid to the insurer. Only the insurer makes a promise of future performance,
and only the insurer can be charged with a breach of contract. The policy owner can cancel the
policy at any time and for any reason. The policy owner is not required to continue paying future
premiums.
Conditional contract correct answers Both parties must perform certain duties and follow rules of
conduct to make the contract enforceable. The insurer must pay claims if the insured has
complied with all the policy terms and conditions. Without premiums being paid on time in full
the insurer is not obligated to pay the claim if the policy lapses.
Principle of indemnity correct answers The insured is restored to the same financial or economic
condition that existed prior to the lots depending on the amount and type of insurance purchase.
The insured should not profit from an insurance transaction.
Utmost good faith correct answers Both parties bargain in good faith when forming and entering
into a contract the two parties rely upon the statements promises of the other and assume know
what time to conceal or deceive has been made.
Representations correct answers Statements made by the applicant on the application are
considered representations and not warranties. The representations on the statements are believed
to be true to the best of the knowledge and belief of the applicant/insured at the time of the
application.
, Material versus immaterial representations correct answers Statements that impact the
acceptance of an insurable risk weather involving the rating of an acceptable risk, or the decision
as to whether to accept or decline a risk are considered to be material. Immaterial representations
do not affect acceptance or reading of the risk.
Misrepresentations correct answers A false statement contained in the application usually does
not void coverage on the policy, if it is in material. If material to the issuance of coverage,
meaning the insurer would not have issued a policy have a misrepresentation misrepresentation
not been made, or premiums charged would've been higher, or coverage limited, Cupboards does
not apply. I'm material misrepresentation may void the policy.
Warranties correct answers Statements in the application or stipulations in the policy that are
guaranteed to be true in all respects. If warranties are later discovered untrue or breached
coverage is voided.
Concealment correct answers Willful holding back or secretion of material facts pertinent to the
issuance of insurance in parentheses or a claim. And see him it may result in denial of coverage
and maybe the policy.
Fraud correct answers Contains five elements. It's the intentional deception of the truth in order
to induce another to part with something of common value or just surrender illegal right Bullet
point false statement, made intentionally and that pertains to a material fact, disregard for the
victim, victim believes the false statement, victim makes the decision and or ask based on the
believe in, or reliance upon, the false statement, the victims decision and or action result in harm.
Weaver correct answers Voluntary surrender of a known right, claim or privilege. An example
would be an ensures failure to obtain an answer to an answered question in its application for
insurance prior to issuing the policy. Such a failure waves the insurance rates take a test a claim
based on the information he could've recently have obtained. It may also be cases in which the
insurer excepts an overdue premium that keeps opposing force.
Reasonable expectations doctrine correct answers What are reasonable and prudent policy owner
would expect, the reasonable expectations of policy owners are honored by the courts although
the strict terms of the policy may not support these expectations
Estoppel correct answers Judicial denial of contractual right based on prior actions contrary to
what the contract requires. A sample would be an insurer who routinely does not require an
application for reinstatement cannot Contesta claim because an application was not submitted
even though it is a requirement stated in the reinstatement provision in a contract by law there
are several forms of estoppel if the insurer waves that's right I cannot later than assert those right.
Judicial denial of contractual right based on prior actions contrary to what the contract requires.
A sample would be an insurer who routinely does not require an application for reinstatement
cannot Contesta claim because an application was not submitted even though it is a requirement
Consideration correct answers The insured's consideration is the payment of a premium or
promise to pay plus the agreement to bide by the conditions of the contract. The insurer's
promise to indemnify in the event of a loss is its consideration.
Contract of adhesion correct answers One party writes the contract without input from the other
party. The insurer prepares the contract and present it to the other party/applicant on a take it or
leave it basis without negotiation. Any doubt or ambiguity found in the document is considered
in favor of the party that did not write it (insured)
Aleatory contract correct answers The exchange of value is unequal. Insurance premium
payment is less than potential benefit to be received in the event of a loss. The insurance
payment in the event of a loss may be greater, or much less, then the insurance premium
payment.
Personal contract correct answers A contract between the insurance company and the individual.
Personal contracts are specific to the person insured at the time the contract is formed. The
owner and the insured cannot be changed without the consent of the insurance company. A
property and casualty insurance contract is personal since it cannot be assigned. Life insurance is
not a personal contract. The policy can be assigned or a new owner may be named as long as the
insurer is notified of the change.
Unilateral contract correct answers Only one party is legally bound to the contractual obligations
after the premium is paid to the insurer. Only the insurer makes a promise of future performance,
and only the insurer can be charged with a breach of contract. The policy owner can cancel the
policy at any time and for any reason. The policy owner is not required to continue paying future
premiums.
Conditional contract correct answers Both parties must perform certain duties and follow rules of
conduct to make the contract enforceable. The insurer must pay claims if the insured has
complied with all the policy terms and conditions. Without premiums being paid on time in full
the insurer is not obligated to pay the claim if the policy lapses.
Principle of indemnity correct answers The insured is restored to the same financial or economic
condition that existed prior to the lots depending on the amount and type of insurance purchase.
The insured should not profit from an insurance transaction.
Utmost good faith correct answers Both parties bargain in good faith when forming and entering
into a contract the two parties rely upon the statements promises of the other and assume know
what time to conceal or deceive has been made.
Representations correct answers Statements made by the applicant on the application are
considered representations and not warranties. The representations on the statements are believed
to be true to the best of the knowledge and belief of the applicant/insured at the time of the
application.
, Material versus immaterial representations correct answers Statements that impact the
acceptance of an insurable risk weather involving the rating of an acceptable risk, or the decision
as to whether to accept or decline a risk are considered to be material. Immaterial representations
do not affect acceptance or reading of the risk.
Misrepresentations correct answers A false statement contained in the application usually does
not void coverage on the policy, if it is in material. If material to the issuance of coverage,
meaning the insurer would not have issued a policy have a misrepresentation misrepresentation
not been made, or premiums charged would've been higher, or coverage limited, Cupboards does
not apply. I'm material misrepresentation may void the policy.
Warranties correct answers Statements in the application or stipulations in the policy that are
guaranteed to be true in all respects. If warranties are later discovered untrue or breached
coverage is voided.
Concealment correct answers Willful holding back or secretion of material facts pertinent to the
issuance of insurance in parentheses or a claim. And see him it may result in denial of coverage
and maybe the policy.
Fraud correct answers Contains five elements. It's the intentional deception of the truth in order
to induce another to part with something of common value or just surrender illegal right Bullet
point false statement, made intentionally and that pertains to a material fact, disregard for the
victim, victim believes the false statement, victim makes the decision and or ask based on the
believe in, or reliance upon, the false statement, the victims decision and or action result in harm.
Weaver correct answers Voluntary surrender of a known right, claim or privilege. An example
would be an ensures failure to obtain an answer to an answered question in its application for
insurance prior to issuing the policy. Such a failure waves the insurance rates take a test a claim
based on the information he could've recently have obtained. It may also be cases in which the
insurer excepts an overdue premium that keeps opposing force.
Reasonable expectations doctrine correct answers What are reasonable and prudent policy owner
would expect, the reasonable expectations of policy owners are honored by the courts although
the strict terms of the policy may not support these expectations
Estoppel correct answers Judicial denial of contractual right based on prior actions contrary to
what the contract requires. A sample would be an insurer who routinely does not require an
application for reinstatement cannot Contesta claim because an application was not submitted
even though it is a requirement stated in the reinstatement provision in a contract by law there
are several forms of estoppel if the insurer waves that's right I cannot later than assert those right.
Judicial denial of contractual right based on prior actions contrary to what the contract requires.
A sample would be an insurer who routinely does not require an application for reinstatement
cannot Contesta claim because an application was not submitted even though it is a requirement
