Alabama Life and Health Insurance | 294 Questions with 100% correct Answers | Verified and updated 2023

a predetermined limit. - Insurance is a method risk is transferred to an insurer for consideration up to 1. spouses in each other 2. parents in their children 3. creditors in their debtors - Which of the following would be considered proper establishment of insurable interest in the life insurance area? It is called the mortality rate - Which of the following statements about the average number of people who die each year is true? Equal value is not necessarily given by both parties to the contract - An insurance contract is an aleatory contract. This means: Only the insurance company is bound to live up to its side of the agreement - A life insurance policy is a unilateral contract because: 1. Legal purpose 2. Offer and acceptance 3. Consideration - All of the following are elements of a contract Unauthorized company - A company that has not received permission from an Insurance Commissioner to do business in his or her state is called a/an: A written or oral statement which is false - Misrepresentation is: Adverse Selection - The chance that a person who anticipates a loss will purchase insurance is:Assumption of risk - Assuming a deductible with your insurance policy is which type of risk management technique?