214 License Study Guide with Best Solutions 100% Verified and Graded A+

214 License Study Guide with Best Solutions 100% Verified and Graded A+ Which of the following describes a participating insurance policy? - Correct Answer Policyowners are entitled to receive dividends At what point must a life insurance applicant be informed of their rights that fall under the Fair Credit Reporting Act? - Correct Answer Upon completion of the application Dividends payable to a policyowner are: - Correct Answer Declared by the insurance company. At what point does an informal agreement become a binding contract? - Correct Answer When consideration is provided by one of the parties to the contract When third-party ownership is involved, applicants who also happen to be the stated primary beneficiary are required to have - Correct Answer Insurable interest in the proposed insured Which of the following arrangements allows one to bypass insurable interest laws? - Correct Answer (STOLI) or Investor Originated Life Insurance Taking receipt of premiums and holding them for the insurance company is an example of - Correct Answer Fiduciary Responsibility A policy of adhesion can only be modified by whom? - Correct Answer The Insurance Company The exchange of unequal values reflects: - Correct Answer Aleatory Life and health insurance policies are - Correct Answer Unilateral Contracts (one makes promise, other can only accept by performance The consideration clause of insurance contract includes - Correct Answer The schedule and amount of premium payments A life insurance arrangement which circumvents insurable interest values is called - Correct Answer Investor Originated Life Insurance (IOLI) Who makes the legally enforceable promises in a unilateral contract? - Correct Answer The Insurance Company A life insurance policy would be considered a wagering contract WITHOUT: - Correct Answer Insurable Interest