Rhode Island insurance exam spring 2023 with complete solution
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Course
Rhode Island
Institution
Rhode Island
Rhode Island insurance exam spring 2023 with complete solution
the role of insurance is to
transfer the risk of financial loss from an individual or business to an insurance company
organized and incorporated under state law owned by stockholders who get a paid share of the company's profit th...
rhode island insurance exam spring 2023 with complete solution the role of insurance is to transfer the risk of financial loss from an individual or business to an insurance company organized and inc
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Rhode Island insurance exam spring 2023 with complete
solution
the role of insurance is to
transfer the risk of financial loss from an individual or business to an insurance company
organized and incorporated under state law owned by stockholders who get a
paid share of the company's profit through dividends. also referred to as a
nonparticipating or non-par bc policy holder do not participate in paid dividends
stock insurance company
organized and incorporated under state law. but they have no stockholders.
instead, the policyholders own the company. owners get paid a share of the
companies profits through dividends. participating or par companies bc policy
owners do not participate in paid dividends
mutual insurer companies
process of a stock company being converted into a mutual company
mutualization
process of a mutual company being converted into a stock company
demutualization
an association formed to underwrite and issue insurance like coverage on certain
items and areas that might otherwise be uninsurable
Lloyds of London
are a specialized branch of the insurance industry that insurers other insurance
company's risk. *is an arrangement by which an insurance company transfers or
sells a portion of the risk to a reinsurance company
reinsurers
the insurance company transferring the risk
ceding company
industrial insurance sold by home service or debit insurance companies
home service insurers
when 3rd party ownership is involved, applicants who also happen to be the
stated primary beneficiary are required to have
insurable interest in the proposed insured
which is considered a statement that is assured to be true in every respect
warranty
which best describes a warranty
statement guaranteed to be true
which of these is not considered to be an element of an insurance contract
negotiating
a life insurance policy would be considered contract without?
insurable interest
all of the following (bilateral unilateral aleatory adhesion) are considered to be
typical characteristics describing the nature of an insurance contract except
bilateral
in an insurance contract the insurer is the only party who makes a legally
enforceable promise what kind of contract is this
, unilateral
Taking receipt of premiums and holding them for the insurance company is an
example of
fiduciary responsibility
a policy of adhesion can only be modified by whom
the insurance company
In regards to representations or warranties, which of these statements is TRUE?
if material to the risk, false representation will void a policy
Statements made on an insurance application that are believed to be true to the
best of the applicant's knowledge are called
representations
life and health insurance policies are
unilateral contracts
which of the following consists of an offer, acceptance, and consideration?
contract
when must insurable interests exist for a life insurance contract to be valid
inception of the contract
The part of a life insurance policy guaranteed to be true is called a(n)
warranty
K is shopping for a permanent life insurance policy that will offer her the most
protection per $. of annual premium. which of these policies best fits her needs?
straight life
What type of life policy has a death benefit that adjusts periodically and is written
for a specific period of time?
decreasing term
under a graded premium whole life policy
the premium increases each year during the early years of the contract and remains the
same after that time
which statement is true regarding a variable whole life policy
a minimum guaranteed death benefit is provided
Which of these life products is NOT considered interest-sensitive?
modified whole life
which of the following type of policies pays a benefit if the insured goes blind
AD&D
D needs life insurance that provides coverage for only a limited amount of time
while also paying the lowest possible premium. What kind of policy is needed?
level term
Term insurance has which of the following characteristics?
expires at the end of the policy period
which is true concerning a variable universal life policy
policy owner controls where the investment will go and selects the amount of the
premium payment
K pays on a $20,000 20-Year Endowment policy for 10 years and dies from an
automobile accident. How much will the insurance company pay the beneficiary?
$20,000 death benefit
When is the face amount paid under a Joint Life and Survivor policy?
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