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a predetermined limit. correct answers Insurance is a method risk is transferred to an insurer for consideration up to 1. spouses in each other 2. parents in their children 3. creditors in their debtors correct answers Which of the following would be considered proper establishment of insurable...

Billy is the owner of a life insurance policy and has chosen a policy settlement option under which the company will pay the beneficiary (his widow) an income each month for as long as she lives. Payment stops at her death. Which settlement option has Billy selected? A. Fixed amount option B. Fi...

Which of the following is a true characteristic of a variable universal life policy? correct answers As long as there is sufficient cash value to cover policy expenses when due, the insured is not required to pay the planned premium Fred purchased a $100,000 policy naming his wife, Wilma, as prim...

Which of the following would be considered a speculative risk? correct answers The possibility the painting you bought might be a long-lost masterpiece A speculative risk is one in which there is a chance for either loss or gain. Example: Gambling, Casino's, Lottery, etc. All of the other choice...

Which Business Auto Symbol is the most broad of all Symbols? A Symbol 3 B Symbol 2 C Symbol 4 D Symbol 1 correct answers Symbol 1 Symbol 1 includes any auto, whether owned or not by the insured if it is used in the insured business. Which of the following would NOT be found in the policy dec...

If a producer changes his residential address who must he/she notify? correct answers This change will need to be reported to the Commissioner. Which of the following is NOT true regarding minors purchasing insurance policies in this state? correct answers Minors at the age of 14 are allowed to b...

A. 10-pay life policy correct answers Which policy accumulates cash value at the fastest rate? Estoppel correct answers The legal doctrine that prevents one from exercising a right of privilege is called contains a grace period. correct answers If the consideration clause states that the premi...

J and his insurance company disagree over some ambiguous language in J's life insurance policy. If the parties end up in court, which principle would direct the court to rule in favor of J? correct answers Adhesion Which of the following is not true about insurance? correct answers It eliminates...

A substandard or special class risk typically results in: correct answers a premium that is higher than for a normal risk John purchases insurance because he expects to experience a loss. This is known as: correct answers adverse selection An insurance company may cancel a life insurance polic...

The minimum grace period for a life insurance policy sold in Alabama is: correct answers 30 days Alabama's annuity disclosure regulation: correct answers Requires the delivery of a buyer's guide and a disclosure document to annuity applicant An insurer pays a large claim for medical expenses...

Risk correct answers Risk is the uncertainty of loss Capitation correct answers Capitation payments are payments agreed upon in a capitated contract by a health insurance company and a medical provider. They are fixed, pre-arranged monthly payments received by a physician, clinic or hospital per ...

John has recently died and it was discovered that he was actually ten years older than what was listed on his life insurance policy. What will the insurer pay his beneficiary? correct answers The amount of insurance that his premiums would have purchased at his correct age Which of the following ...

credit life insurance correct answers replacement regulation does not apply to: endowment policy correct answers a policy owner can collect the face amount on what type of policy? income is paid until the principal amount decreases to zero correct answers which of the following does NOT descri...

The business is always the owner and beneficiary of key employee insurance. correct answers Which of the following statements about key employee life insurance is true? COBRA provides a coverage bridge, HIPPA addresses coverages under plans for new entrants. correct answers COBRA and HIPPA both a...

The premium & the protection remain constant for the term of the policy. correct answers A level term policy is one where.... B. Single premium. correct answers Which policy will have immediate cash? A. Decreasing term B. Single premium C. 10-pay life D. 30-pay life 1 year after the annu...

An insurance company may cancel a life insurance policy under which of the following conditions? correct answers The outstanding policy loan exceeds the cash value of the policy Which of the following statements does not describe an element of insurable risk? A. The loss must not be due to cha...

What is the applicant's consideration in an insurance contract? correct answers Premiums At certain ages or dates, an insured can increase the stated benefit (within limits) under their disability income policy, regardless of health. Which policy rider BEST describes this? correct answers Futre ...

T has Disability Income policy that pays a monthly benefit of $5000. If T becomes partially disabled, what can he likely expect? correct answers Less than $5000 per month benefit regardless of the cause At certain ages, an insured can increase the stated benefit under their disability income poli...