XCEL FULL QUESTIONS AND CORRECT ANSWERS ALREADY PASSED STUDY SHEET

XCEL FULL QUESTIONS AND CORRECT
ANSWERS ALREADY PASSED STUDY SHEET

●● 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
Answer: 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
Answer: 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
Answer: 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
Answer: 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
Answer: 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