Mi Variable life and annuities
Questions & Answers 100%
Verified (Grade A+)
Consideration - CORRECT ANSWER-The insured's consideration is the
payment of a premium or promise to pay plus the agreement to bide by the
conditions of the contract. The insurer's promise to indemnify in the event of a
loss is its consideration.
Contract of adhesion - CORRECT ANSWER-One party writes the contract
without input from the other party. The insurer prepares the contract and present
it to the other party/applicant on a take it or leave it basis without negotiation. Any
doubt or ambiguity found in the document is considered in favor of the party that
did not write it (insured)
Aleatory contract - CORRECT ANSWER-The exchange of value is unequal.
Insurance premium payment is less than potential benefit to be received in the
event of a loss. The insurance payment in the event of a loss may be greater, or
much less, then the insurance premium payment.
,Personal contract - CORRECT ANSWER-A contract between the insurance
company and the individual. Personal contracts are specific to the person insured
at the time the contract is formed. The owner and the insured cannot be changed
without the consent of the insurance company. A property and casualty insurance
contract is personal since it cannot be assigned. Life insurance is not a personal
contract. The policy can be assigned or a new owner may be named as long as the
insurer is notified of the change.
Unilateral contract - CORRECT ANSWER-Only one party is legally bound to the
contractual obligations after the premium is paid to the insurer. Only the insurer
makes a promise of future performance, and only the insurer can be charged with a
breach of contract. The policy owner can cancel the policy at any time and for any
reason. The policy owner is not required to continue paying future premiums.
Conditional contract - CORRECT ANSWER-Both parties must perform certain
duties and follow rules of conduct to make the contract enforceable. The insurer
must pay claims if the insured has complied with all the policy terms and
conditions. Without premiums being paid on time in full the insurer is not
obligated to pay the claim if the policy lapses.
Principle of indemnity - CORRECT ANSWER-The insured is restored to the
same financial or economic condition that existed prior to the lots depending on
the amount and type of insurance purchase. The insured should not profit from an
insurance transaction.
COPYRIGHT ALL RIGHTS RESERVED ©️ 2025
, Utmost good faith - CORRECT ANSWER-Both parties bargain in good faith
when forming and entering into a contract the two parties rely upon the statements
promises of the other and assume know what time to conceal or deceive has been
made.
Representations - CORRECT ANSWER-Statements made by the applicant on the
application are considered representations and not warranties. The representations
on the statements are believed to be true to the best of the knowledge and belief of
the applicant/insured at the time of the application.
Material versus immaterial representations - CORRECT ANSWER-Statements
that impact the acceptance of an insurable risk weather involving the rating of an
acceptable risk, or the decision as to whether to accept or decline a risk are
considered to be material. Immaterial representations do not affect acceptance or
reading of the risk.
Misrepresentations - CORRECT ANSWER-A false statement contained in the
application usually does not void coverage on the policy, if it is in material. If
material to the issuance of coverage, meaning the insurer would not have issued a
policy have a misrepresentation misrepresentation not been made, or premiums
charged would've been higher, or coverage limited, Cupboards does not apply. I'm
material misrepresentation may void the policy.
Questions & Answers 100%
Verified (Grade A+)
Consideration - CORRECT ANSWER-The insured's consideration is the
payment of a premium or promise to pay plus the agreement to bide by the
conditions of the contract. The insurer's promise to indemnify in the event of a
loss is its consideration.
Contract of adhesion - CORRECT ANSWER-One party writes the contract
without input from the other party. The insurer prepares the contract and present
it to the other party/applicant on a take it or leave it basis without negotiation. Any
doubt or ambiguity found in the document is considered in favor of the party that
did not write it (insured)
Aleatory contract - CORRECT ANSWER-The exchange of value is unequal.
Insurance premium payment is less than potential benefit to be received in the
event of a loss. The insurance payment in the event of a loss may be greater, or
much less, then the insurance premium payment.
,Personal contract - CORRECT ANSWER-A contract between the insurance
company and the individual. Personal contracts are specific to the person insured
at the time the contract is formed. The owner and the insured cannot be changed
without the consent of the insurance company. A property and casualty insurance
contract is personal since it cannot be assigned. Life insurance is not a personal
contract. The policy can be assigned or a new owner may be named as long as the
insurer is notified of the change.
Unilateral contract - CORRECT ANSWER-Only one party is legally bound to the
contractual obligations after the premium is paid to the insurer. Only the insurer
makes a promise of future performance, and only the insurer can be charged with a
breach of contract. The policy owner can cancel the policy at any time and for any
reason. The policy owner is not required to continue paying future premiums.
Conditional contract - CORRECT ANSWER-Both parties must perform certain
duties and follow rules of conduct to make the contract enforceable. The insurer
must pay claims if the insured has complied with all the policy terms and
conditions. Without premiums being paid on time in full the insurer is not
obligated to pay the claim if the policy lapses.
Principle of indemnity - CORRECT ANSWER-The insured is restored to the
same financial or economic condition that existed prior to the lots depending on
the amount and type of insurance purchase. The insured should not profit from an
insurance transaction.
COPYRIGHT ALL RIGHTS RESERVED ©️ 2025
, Utmost good faith - CORRECT ANSWER-Both parties bargain in good faith
when forming and entering into a contract the two parties rely upon the statements
promises of the other and assume know what time to conceal or deceive has been
made.
Representations - CORRECT ANSWER-Statements made by the applicant on the
application are considered representations and not warranties. The representations
on the statements are believed to be true to the best of the knowledge and belief of
the applicant/insured at the time of the application.
Material versus immaterial representations - CORRECT ANSWER-Statements
that impact the acceptance of an insurable risk weather involving the rating of an
acceptable risk, or the decision as to whether to accept or decline a risk are
considered to be material. Immaterial representations do not affect acceptance or
reading of the risk.
Misrepresentations - CORRECT ANSWER-A false statement contained in the
application usually does not void coverage on the policy, if it is in material. If
material to the issuance of coverage, meaning the insurer would not have issued a
policy have a misrepresentation misrepresentation not been made, or premiums
charged would've been higher, or coverage limited, Cupboards does not apply. I'm
material misrepresentation may void the policy.
