NC LIFE insurance state exam questions and answers 100% pass |A+ Graded

NC LIFE insurance state exam questions and answers 100% pass CREDIT LIFE a 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 a 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 to 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 the legal term for the intentional withholding of information of a material fact that is crucial in making a decision MISREPRESENTATION statement that if discovered would alter the underwriting decision of the insurance company IMPERSONATION Otherwise 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 only 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 a 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 sometimes 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 an 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.