Xcel Solutions West Virginia Insurance
Part 2 Practice Exam Fully Solved.
Which of the following is an example of the insured's consideration? - Answer A paid premium
Insurable interest does NOT occur in which of the following relationships? - Answer Business owner
and business client
_______ is NOT an element of a valid contract. - Answer Countersignature
The power given to an individual producer that is not specifically addressed in his/her contract is
considered what type of authority? - Answer implied
Bob and Tom start a business. Since each partner contributes an important element to the success of the
business, they decide to take life insurance policies out on each other, and name each other as
beneficiaries. Eventually, they retire and dissolve the business. Bob dies 12 months later. The policies
continue in force with no change. Both partners are still married at the time of Bob's death. In this
situation, who will receive Bob's policy proceeds? - Answer Tom
The deeds and actions of a producer indicate what kind of authority? - Answer Apparent
In an insurance contract, the insurer is the only party legally obligated to perform. Because of this, an
insurance contract is considered - Answer unilateral
In order for a contract to be valid, it must - Answer contain an offer and acceptance
Which of the following BEST describes a conditional insurance contract? - Answer A contract that
requires certain conditions or acts by the insured individual
All of the following are elements of an insurance policy EXCEPT - Answer other insurance
, All of the following are elements of an insurance policy EXCEPT - Answer claim forms
Which type of clause describes the following statement: "We have issued the policy in consideration of
the representations in your applications and payment of the first-term premium". - Answer
Consideration clause
When the principal gives the agent authority in writing, it's referred to as - Answer express authority
In an insurance contract, the applicant's "consideration" is the - Answer statements made in the
application and the premium
According to life insurance contract law, insurable interest exists - Answer at the time of application
Which contract element is insurable interest a component of? - Answer Legal purpose
The term which describes the fact that both parties of a contract may NOT receive the same value is
referred to as - Answer Aleatory
Intentional withholding of material facts that would affect an insurance policy's validity is called a(n) -
Answer concealment
What is implied authority defined as? - Answer Authority that is not specifically given to an agent in the
agency contract, but that an agent can reasonably assume to carry out his/her duties
According to the principle of Utmost Good Faith, the insured will answer questions on the application to
the best of their knowledge and pay the required premium, while the insurer will deal fairly with the
insured and it's - Answer promises made
Under a contract of adhesion, - Answer the terms must be accepted or rejected in full
Ambiguities in an insurance policy are always resolved in favor of the - Answer insured
Part 2 Practice Exam Fully Solved.
Which of the following is an example of the insured's consideration? - Answer A paid premium
Insurable interest does NOT occur in which of the following relationships? - Answer Business owner
and business client
_______ is NOT an element of a valid contract. - Answer Countersignature
The power given to an individual producer that is not specifically addressed in his/her contract is
considered what type of authority? - Answer implied
Bob and Tom start a business. Since each partner contributes an important element to the success of the
business, they decide to take life insurance policies out on each other, and name each other as
beneficiaries. Eventually, they retire and dissolve the business. Bob dies 12 months later. The policies
continue in force with no change. Both partners are still married at the time of Bob's death. In this
situation, who will receive Bob's policy proceeds? - Answer Tom
The deeds and actions of a producer indicate what kind of authority? - Answer Apparent
In an insurance contract, the insurer is the only party legally obligated to perform. Because of this, an
insurance contract is considered - Answer unilateral
In order for a contract to be valid, it must - Answer contain an offer and acceptance
Which of the following BEST describes a conditional insurance contract? - Answer A contract that
requires certain conditions or acts by the insured individual
All of the following are elements of an insurance policy EXCEPT - Answer other insurance
, All of the following are elements of an insurance policy EXCEPT - Answer claim forms
Which type of clause describes the following statement: "We have issued the policy in consideration of
the representations in your applications and payment of the first-term premium". - Answer
Consideration clause
When the principal gives the agent authority in writing, it's referred to as - Answer express authority
In an insurance contract, the applicant's "consideration" is the - Answer statements made in the
application and the premium
According to life insurance contract law, insurable interest exists - Answer at the time of application
Which contract element is insurable interest a component of? - Answer Legal purpose
The term which describes the fact that both parties of a contract may NOT receive the same value is
referred to as - Answer Aleatory
Intentional withholding of material facts that would affect an insurance policy's validity is called a(n) -
Answer concealment
What is implied authority defined as? - Answer Authority that is not specifically given to an agent in the
agency contract, but that an agent can reasonably assume to carry out his/her duties
According to the principle of Utmost Good Faith, the insured will answer questions on the application to
the best of their knowledge and pay the required premium, while the insurer will deal fairly with the
insured and it's - Answer promises made
Under a contract of adhesion, - Answer the terms must be accepted or rejected in full
Ambiguities in an insurance policy are always resolved in favor of the - Answer insured
