Kentucky Life Insurance Test State Exam with Correct Answers 2024

Kentucky Life Insurance Test State Exam with Correct Answers 2024 Insurance - CORRECT ANSWER-Means for spreading the result of financial loss among many persons so the cost to any one person is small Assessment - CORRECT ANSWER-System of paying losses by requiring a contribution from each family covered by the plan Principle of Life Insurance - CORRECT ANSWER-Life insurance is a means of spreading among many persons the financial loss resulting from an individual's death so that the cost for each individual is small Necessary procedures to make system of life insurance operate efficiently - CORRECT ANSWER-1. Sell insurance to those desiring it 2. Collect the money due for the insurance 3. Handle the administrative details 4. Pay those persons named to collect the insurance proceeds after the death of the person whose life is insured Elements of a contract - CORRECT ANSWER-1. Competent parties - contract must be between two people considered competent under the law 2. Legal Purpose- contracts enforceable only if they are made in pursuit of some legal purpose 3. Offer and Acceptance- One party who makes the offer, and one party who accepts the offer 4. Consideration- The thing of value exchanged for the performance promised in the contract (Premium paid in exchange for insurance is the consideration) Waiver - CORRECT ANSWER-Voluntary giving up of a known right or privilege -Express waivers- intentionally written and included with an insurance policy in the form of a rider that is added to the policy -Implied waiver- result because the agent or the insurer has permitted something to occur or be overlooked, either intentionally or inadvertently Estoppel - CORRECT ANSWER-A person is prohibited by virtue of his own past actions (Waiver) from claiming a right that would work to the detriment of another who relied on the past conduct -if a company or person gives up a right, they are stopped, or estopped from asking for it back at a later time Parol Evidence Rule - CORRECT ANSWER-When parties agree to a written contract any previous oral agreements must be included in the written agreement