Life & Health Insurance Exam Prep 2024 Questions with complete solutions

The payment of the first premium, the promise to pay a covered loss, and the agreement to abide by policy conditions are all examples of... - ANSWER-consideration The insurer's obligation to pay a claim depends on whether the insured or beneficiary has complied with all policy conditions. This makes the policy a(n) - ANSWER-conditional contract XYZ Insurance Company gives direct authority to its producers to sell insurance through an agency contract, but nothing is stated regarding the collection of premiums. Which authority grants the producer the right to collect premiums? - ANSWER-Implied Authority Which situation would not require the insured's consent when a life insurance policy is issued? - ANSWER-A policy is purchased by a parent for a minor child. A insurance company's failure to enforce a contract's provision is called a(n) - ANSWER-Waiver When must insurable interest exist for a life insurance contract to be valid? - ANSWER-Inception of the contract The courts will normally interpret a policy in favor of the insured when the meaning of the policy is not clear. This is because an insurance policy is a(n) - ANSWER-Contract of Adhesion Use of XYZ Insurance Company brochures, business cards, and rating guides is an example of - ANSWER-Apparent Authority What happens when an initial offers is answered with a counteroffer? - ANSWER-Initial offer is void During the application process, a statement made by an applicant that becomes part of the contract is considered to be a(n) - ANSWER-warranty