CA Life Accident & Health Top scoring test Questions

Insurance is defined as? - ANSWER-A contract whereby one undertakes to indemnify another against loss, damage, or liability arising from a contingent or unknown event. A written instrument in which a contract of insurance is set forth is the? An agreement between the insurer and the insured, the person who is covered by the insurance, is established in a legal document referred to as a contract of insurance - ANSWER-policy Loss is? - ANSWER-defined as reduction in the value of an asset To be paid for a loss the insured must notify the insurer by? - ANSWER-making a claim What is an insurable interest? It must be based on? - ANSWER-An interest in the life of an individual by which there will be a loss if the insured dies. Either a family relationship or on economic factors Must exist at the tie of application, not necessarily at the time of loss. If you would benefit if a person continues to live, you have an insurable interest in that person. To "rescind" a policy means to? - ANSWER-void or cancel the policy flat by returning all premiums to the insured. It is as if the policy never existed and no coverage applies What is fraud? - ANSWER-An intentional and fraudulent omission on the part of an insured that allows the insurer to rescind the contract What is perjury? - ANSWER-A false representation on a signed claim form Concealment is? - ANSWER-the neglect to communicate that which a party knows and ought to communicate