Delaware Life Insurance Exam Questions AND Correct
Answers
A contract without a legal purpose is considered what? -
✔✔Void, and it cannot be enforced by any party.
An example of aleatory contract: - ✔✔John purchases a life
insurance policy for $100,000. His monthly premium is $100. If
John only had the policy fo 2 months, which means that he
only paid $200 in premiums, and he unexpectedly died, his
beneficiary will receive $100,000. A $200 contribution on the
part of the insured in exchange for $100,000 benefit from the
insurer illustrates an aleatory contract.
How are insurance policies drawn up? - ✔✔Not through
negotiations. An insured has little to say about its provisions.
Insurance contracts are drawn up on a "take-it-or-leave-it""
basis by an insurer.
If there was no life insurance mechanism, who would have to
bear the cost of a loss? - ✔✔The individual who suffered the
loss.
, In life insurance, the policy protects what? - ✔✔Survivors
from losses suffered after an insured's death.
In life insurance, what must exist between the policyowner
and the insured AT THE TIME OF APPLICATION? - ✔✔Insurable
interest.
In order for their to be offer and acceptance, what must there
be? - ✔✔A definite offer by one party, AND the other party
must accept this offer in its EXACT TERMS.
In the event of the insured's death, what does the insurer
pay? - ✔✔The death benefit to the beneficiary.
Insurable interest is not required of who for a life insurance
policy? - ✔✔The beneficiary.
Insurance Policy - ✔✔A contract between a policyowner
(and/or insured) and an insurance company which agrees to
pay the insured or the beneficiary for loss caused by specific
events
Answers
A contract without a legal purpose is considered what? -
✔✔Void, and it cannot be enforced by any party.
An example of aleatory contract: - ✔✔John purchases a life
insurance policy for $100,000. His monthly premium is $100. If
John only had the policy fo 2 months, which means that he
only paid $200 in premiums, and he unexpectedly died, his
beneficiary will receive $100,000. A $200 contribution on the
part of the insured in exchange for $100,000 benefit from the
insurer illustrates an aleatory contract.
How are insurance policies drawn up? - ✔✔Not through
negotiations. An insured has little to say about its provisions.
Insurance contracts are drawn up on a "take-it-or-leave-it""
basis by an insurer.
If there was no life insurance mechanism, who would have to
bear the cost of a loss? - ✔✔The individual who suffered the
loss.
, In life insurance, the policy protects what? - ✔✔Survivors
from losses suffered after an insured's death.
In life insurance, what must exist between the policyowner
and the insured AT THE TIME OF APPLICATION? - ✔✔Insurable
interest.
In order for their to be offer and acceptance, what must there
be? - ✔✔A definite offer by one party, AND the other party
must accept this offer in its EXACT TERMS.
In the event of the insured's death, what does the insurer
pay? - ✔✔The death benefit to the beneficiary.
Insurable interest is not required of who for a life insurance
policy? - ✔✔The beneficiary.
Insurance Policy - ✔✔A contract between a policyowner
(and/or insured) and an insurance company which agrees to
pay the insured or the beneficiary for loss caused by specific
events
