Kansas Life Insurance Exam UPDATED
Study Guide QUESTIONSAND
CORRECT ANSWSER
Insurance - CORRECT ANSWERS - Transfers the risk of loss from an
individual to an insurer
- Based on the principle of indemnity
- Based on the spreading of risk (risk pooling ) and the law of large
Insurable Interest - CORRECT ANSWERS - Must exist at the time of
application
- Insuring one's own life, family member, or a business partner
Elements of a Legal Contract - CORRECT ANSWERS - Agreement:
offer and acceptance
- Consideration: premiums and representations on the part of the insured;
payment of claims on the part of
the insurer
- Competent parties: of legal age, sound mental capacity, and not under the
influence of drugs or alcohol
- Legal purpose: not against public policy
Contract Characteristics - CORRECT ANSWERS - Adhesion: one party
prepares the contract; the other party must accept it as is
- Aleatory: exchange of unequal amounts
- Conditional: certain conditions must be met
- Unilateral: only one of the parties to the contract is legally bound to do
anything
, Field Underwriting (By Agent) - CORRECT ANSWERS - Application:
completed and signed
- Agent's report agent's observations about the applicant that can assist in
underwriting
- Premiums with application and conditional receipts
Company Underwriting - CORRECT ANSWERS - Multiple sources of
information: application, consumer reports, MIB
- Risk classification 3 types of risks: standard, substandard, preferred
Federal Regulations - CORRECT ANSWERS - Fair Credit Reporting
Act: protects consumers against circulation of inaccurate or obsolete
information
- USA PATRIOT Act/Antimoney Laundering and Suspicious Activity Reports
Rules
Determination - CORRECT ANSWERS - Mode: the more frequently
premium is paid, the higher the premium
Policy Issue and Delivery - CORRECT ANSWERS - Effective date of
coverage: if the premium is not paid with the application, the agent must obtain
the premium and a statement of continued good health at
the time of policy delivery
Level Premium Term - CORRECT ANSWERS - Level Death Benefit
and Level Premium
Annually Renewable Term - CORRECT ANSWERS - Renews each year
without proof of insurability and Premiums increase due to attained age
Study Guide QUESTIONSAND
CORRECT ANSWSER
Insurance - CORRECT ANSWERS - Transfers the risk of loss from an
individual to an insurer
- Based on the principle of indemnity
- Based on the spreading of risk (risk pooling ) and the law of large
Insurable Interest - CORRECT ANSWERS - Must exist at the time of
application
- Insuring one's own life, family member, or a business partner
Elements of a Legal Contract - CORRECT ANSWERS - Agreement:
offer and acceptance
- Consideration: premiums and representations on the part of the insured;
payment of claims on the part of
the insurer
- Competent parties: of legal age, sound mental capacity, and not under the
influence of drugs or alcohol
- Legal purpose: not against public policy
Contract Characteristics - CORRECT ANSWERS - Adhesion: one party
prepares the contract; the other party must accept it as is
- Aleatory: exchange of unequal amounts
- Conditional: certain conditions must be met
- Unilateral: only one of the parties to the contract is legally bound to do
anything
, Field Underwriting (By Agent) - CORRECT ANSWERS - Application:
completed and signed
- Agent's report agent's observations about the applicant that can assist in
underwriting
- Premiums with application and conditional receipts
Company Underwriting - CORRECT ANSWERS - Multiple sources of
information: application, consumer reports, MIB
- Risk classification 3 types of risks: standard, substandard, preferred
Federal Regulations - CORRECT ANSWERS - Fair Credit Reporting
Act: protects consumers against circulation of inaccurate or obsolete
information
- USA PATRIOT Act/Antimoney Laundering and Suspicious Activity Reports
Rules
Determination - CORRECT ANSWERS - Mode: the more frequently
premium is paid, the higher the premium
Policy Issue and Delivery - CORRECT ANSWERS - Effective date of
coverage: if the premium is not paid with the application, the agent must obtain
the premium and a statement of continued good health at
the time of policy delivery
Level Premium Term - CORRECT ANSWERS - Level Death Benefit
and Level Premium
Annually Renewable Term - CORRECT ANSWERS - Renews each year
without proof of insurability and Premiums increase due to attained age
