NC Accident and Health Licensing Questions And Answers Already Graded A+

Insurance - a plan of spreading the risk of possible loss over a large number of people Representation - information believed to be true to the best of one's knowledge Agents - Representatives of the INSURER - represents single insurer Brokers - Representatives of the INSURED - represents multiple firms Unilateral Contract - Type of contract that is an exchange of an act for a promise - i.e. - the INSURED may discontinue coverage at any time and the INSURER can not enforce the continuation of the policy Adhesion Contract - Type of contract that is take it or leave it - i.e. - The insurer writes the insurance contract and the insured is "stuck" with that wording. Aleatory Contract - Type of contract that features an unequal exchange of value between the parties - i.e. - a policy owner may have submitted only one premium payment with the insured dies and the policy's full amount would be payable. Insuring Agreement - The heart of the contract that states the perils (accidents or sickness) that are covered by the policy and establishes the insurer's commitment to pay the death benefit. Conditions - Provisions and stipulations of the policy Exclusions / Waivers - States what perils or losses are NOT covered Riders (Endorsements) - Modify the basic contract and are considered added benefits.Twisting - Misrepresentation of a policy's terms and values to induce the lapse or replacement of an existing contract of insurance. Declarations Page - Personalized part of the policy that includes: Parties to the contract, policy term, amount of insurance purchased, amount of premium to be paid, object or person insured. Adverse Underwriting Decision - When an application for insurance has been rejected, a policy has been terminated or coverage has been rated as substandard risk