Missouri Driver Permit Test Exam Questions With Correct Answers

Missouri Life and Health Insurance Exam Study Guide. Insurance transaction includes: - answerBy mail or other means: - Solicitation - Negotiation - Sale - Advising an individual about coverage Elements of a legal contract - answer-Agreement (offer and acceptance) - Consideration - Competent parties - Legal purpose - Negotiation does NOT need to happen Who make the offer in an insurance application - answer- Applicant When does acceptance take place - answer- An insurers underwriter approves the application and issues a policy The binding force in any contract - answer- Consideration - insurer promises to pay in the event of a loss Contract of adhesion - answer- Prepared by the insurer and accepted or rejected by the insured - "Take it or leave it" basis Insurance contracts are - answer- Aleatory - exchange of unequal amounts of values Unilateral contract - answer- only one of the parties is legally bound ©THEBRIGHT EXAM SOLUTIONS 11/06/2024 10:41 AM - "one-way contract" "When does an insurance policy go into effect" - answer- When the insured receives it Conditional contract - answer- certain conditions must be met by the policy owner Warranty - answer- An absolutely true statement upon upon which the validity of the insurance policy depends Representions - answer- Statements believed to be true Misrepresentation - answer- Untrue statements on the applications - Can void the contract Material misrepresentation - answer- Would alter the underwriting decision of insurance company Part 1- General Information - answer- Name, age, address, birth date, gender, income, marital status, and occupation Part 2- Medical Information - answer- Medical background, present health - Medical visits in recent years - Medical status of relatives/ causes of deaths Field underwriter - answer- Solicited the potential insured - Analyzes health - Gets info on client Agents report - answer- Observations concerning the proposed insured - Does not become a part of the entire contract - communicate with underwriter and provide info about the applicant known by the agent Required signatures - answer- the proposed insured - the agent - the policy owner (if not proposed insured) Changes in the application - answer- Applicant must initial the change Consequences of incomplete applications - answer- Must return to applicant for completion ©THEBRIGHT EXAM SOLUTIONS 11/06/2024 10:41 AM - If a policy is issued with questions left unanswered, the contract will be interpreted as if the insurer waived its right to have an answer to the question Premium receipt - answer- Agent must issue - Will determine when coverage will be effective Conditional receipt - answer- effective either on the date of application or medical exam - Most common type of receipt - used when applicant submits prepaid application Replacement - answer- Terminating an existing policy or letting it lapse and obtaining a new one - Nothing illegal about replacing life insurance Underwriting - answer- The risk selection process - Avoid adverse selection Adverse selection - answer- Risks which are more likely to suffer a loss - Protects the insurer Insurable interest - answer- Must exist between policy owner and insured at time of application - Cannot buy on anyone - Suffer financially if someone dies Application - answer- Submit an application to the insurer for approval for a policy to be issued Fair Credit Reporting Act - answer- Consumer-reporting agencies must follow in order to ensure that records are properly used - Protects consumers - Insurance rated by states - "At the time of application" - If willingly violates Act penalty up to $2,500