exam fx study guide Questions With Complete Solution

What phase begins after a new policy is delivered? correct answer: Free look period In insurance policies, the insured is not legally bound to any particular action in the insurance contract, but the insurer is legally obligated to pay losses covered by the policy. What contract element does this describe? correct answer: Unilateral What is the term used for an applicant's written request to an insurer for the company to issue a contract, based on the information provided? correct answer: application Whose responsibility is it to determine if all of the questions on an application have been answered? correct answer: the agent An insured is upset that her new health insurance policy was delivered to her by certified mail and not through her agent. Which of the following is true? correct answer: (there is nothing wrong with this form of policy delivery) Although it is advisable for an agent to personally deliver a policy, in order to answer any questions and insure delivery, it is legal for a policy to be effectively delivered without the presence of an agent. It is legal to deliver a policy through some types of mail The Medical Information Bureau (MIB) was created to protect correct answer: Insurance companies from adverse selection by high risk persons An insurance contract requires that both the insured and the insurer meet certain conditions in order for the contract to be enforceable. What contract characteristics does this describe? correct answer: conditional Which of the following is a statement that is guaranteed to be true, and if untrue, may breach an insurance contract? correct answer: warranty - an absolutely true statement upon which the validity of the insurance policy depends In insurance, an offer is usually made when correct answer: An applicant submits an application to the insurer