MO Health & Life Insurance Exam 100% Correct!!

MO Health & Life Insurance Exam 100% Adverse Selection -ANSWER insuring of risks that are more prone to losses than the average risk agent/producer -ANSWER legal representative of insurance company producer -ANSWER includes agents and brokers agent -ANSWER agent of the insurer applicant -ANSWER a person applying for insurance beneficiary -ANSWER person who receives benefits of an insurance policy death benefit -ANSWER the amount paid upon death of the person insured through life insurance insurance policy -ANSWER a contract between a policy owner and insurance company which agrees to pay the insured or beneficiary for loss caused by special events insured -ANSWER person covered by the insurance policy may or may not be the policy owner insurer -ANSWER the company that issues the insurance policy lapse -ANSWER policy termination due to non payment or premium life insurance -ANSWER coverage of human lives policy owner -ANSWER the person entitled to exercise the rights and privileges of the company premium -ANSWER the money paid to the company for the policy Elements of a Legal Contract -ANSWER 1. Agreement- offer and acceptance 2. Consideration 3. Competent parties 4. Legal Purpose Agreement -ANSWER Applicant makes an offer when submitting an application Consideration -ANSWER binding force in any contract. Each party gives to one another. The consideration on part of the insurer is the promise to pay in the event of loss Competent parties -ANSWER Competent in the eyes of the law. legal age. mentally competent legal purpose -ANSWER not against public policy. Must have both: insurable interest and consent Contract Adhesion -ANSWER the insured must accept the entire contract with all of its terms and conditions. Take-it-or-leave-it basis by insurer to the insured party Aleatory Contract -ANSWER The exchange of value is unequal. unilteral contract -ANSWER Only one of the parties of the contract is legally bound to do anything. The insured makes no legally binding promises. BUT insurer is legally bound to pay losses covered by policy in force Conditional Contract -ANSWER A type of an agreement in which both parties must perform certain duties and follow rules of conduct to make the contract enforceable. The insured must pay the premium and provide proof of loss in order for the insurer to cover the claim Warrenty -ANSWER Absolute true statement Breach of Warranty -ANSWER The failure of a product to meet the terms of its warranty. Statement made by applicants for life and health policies are usually not considered warranties except in case of fraud. Correct!!