NC LIFE insurance State Exam Questions With 100% Correct Answers 2024

NC LIFE insurance State Exam Questions With 100% Correct Answers 2024 CREDIT LIFE - answera special type of coverage written to the life of the debtor and pay off the balance of a loan in the event of the death of the debtor. BUY-SELL AGREEMENTS - answera legal contract that determines what will be done with a business in the event that an owner dies or becomes disabled. Otherwise known as a business continuation agreement INSURABLE INTEREST - answerto purchase insurance the policy owner must face the possibility of losing money or something of value in the event of loss, insurable interest must exist between the policy owner and the insured at the time of application CONCEALMENT - answerthe legal term for the intentional withholding of information of a material fact that is crucial in making a decision MISREPRESENTATION - answerstatement that if discovered would alter the underwriting decision of the insurance company IMPERSONATION - answerOtherwise known as false pretense, refers to the act of assuming the name and/or identity of another person for the purpose of committing a fraud UNILATERAL - answeronly one of the parties to the contract is legally bound to do anything. The insured makes no legally binding promises however an insurer is legally bound to pay losses covered by a policy in force ADHESION - answera contract of adhesion is prepared by one of the parties (insurer) and accepted or rejected by the other party (insured). Insurance policies are not drawn up through negotiations, and an insured has little to say about its provisions. Insurance contract are offered on a take it or leave it basis by an insurer INDEMNITY - answersometimes known as reimbursement, a provision in an insurance policy that states that in the event of loss, an insured or beneficiary is permitted to collect only to the extent of the financial loss, and is not allowed to gain financially because of the existence of an insurance contract. The purpose of an insurance contract is to restore, but not let an insured or a beneficiary profit from the loss ALEATORY - answeran exchange of unequal amounts or values. The premium paid by the insured is small in relation to the amount that will be paid by the insurer in the event of a loss. CONDITIONAL - answerrequires that certain conditions must be met by the policy owner and the company in order for the contract to be executed and before each party fulfills its obligations. ELEMENTS OF A VALID CONTRACT - answerAgreement - Offer and Acceptance, Consideration, Competent Parties, Legal Purpose TERM LIFE INSURANCE - answertemporary protection because it only provides coverage for a specific period of time; pure death protection; if the insured dies during this term, the policy pays the death benefits to the beneficiary; if the policy is canceled or expires prior to the insured's death, nothing is payable at the end of the term; there is no cash value or other living benefits RENEWABILITY - answerallows the policy owner the right to renew the coverage at the expiration date without evidence of insurability. The premium will be based on the insured age at the time of renewing CONVERTIBILITY - answerprovision that provides the policy owner with the right to convert the policy to a permanent insurance policy without the evidence of insurability. Premium will be based on the insured's attaine