Life and Health Exam Questions and Answers 100% Solved

Life and Health Exam Questions and Answers 100% Solved Chapter 1: Completing the application, underwriting, and delivering the policy: ️️ What is insurance? ️️Insurance TRANSFERS the risk of loss from an individual or business entity to an insurance company, which in turn spreads the costs of unexpected losses to many individuals.If there were no insurance mechanism, the cost of a loss would have to be borne solely by the individual who suffered the loss. What is included under the term insurance transaction? ️️-Solicitation -Negotiations -Sale (effectuation of a contract of insurance) -Advising an individual concerning coverage or claims What are the 4 elements of an insurance contract? ️️1. Offer and Acceptance: 2. Consideration: 3.Competent Parties 4. Legal Parties What does representation mean? How does it differ from warranty? ️️Representation are statements believed to be true to the best of ones knowledge, but they are not guaranteed to be true. Representations are the answers the insured gives to the questions on the insurance application. Difference: Warranty's are absolutely true statements and Representations are believed to be true but not guaranteed.