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Kentucky Health & Life Exam Questions and Answers(Commonwealth Schools of Insurance - PT 1)
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Kentucky Health & Life Exam Questions and Answers(Commonwealth Schools of Insurance - PT 1)
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Kentucky Health & Life (CommonwealthSchools of Insurance - PT 1)
spreading the result of financial loss among many persons so the cost to any one person is small -
Answer-Insurance
suppose a person pays a specified amount of money into a fund in a predetermined, fixed interval basis.
The amount is based on the person's age. When the person dies, his family will be paid a specified
amount of money. Which of the following has taken place? - Answer-Uncertainty about living long
enough to provide for the family's financial security has been exchanged for a certain cost
Under the principle of life insurance, many pay for the actual losses of a few because - Answer-it is
impossible to know in advance which few among the many will sustain losses.
Life insurance spreads among many the financial loss resulting from an individual's death so that the
cost to each individual is: - Answer-small
a legal agreement between two or more parties promising a certain performance in exchange for a
valuable consideration - Answer-contract
, Why are life and health insurance policies considered unilateral contracts? - Answer-because only the
insurance company is obligated to perform
Under the terms of a valid insurance contract, the policyowner's consideration is the premium paid and
the application as part of the contract. Which of the following represents the insurance company's
consideration? - Answer-A PROMISE TO PAY BENEFITS IN THE EVENT OF A LOSS
All of the following are characteristics of a legally enforceable contract: - Answer-- competent parties
- legal purpose
- offer and acceptance
- consideration.
Generally, which of the following could be a party to a valid contract? - Answer-a competent adult
Which of the following contracts could be considered valid? - Answer-ONE THAT IS FORMED FOR A
LEGAL PURPOSE
Offer and acceptance being a characteristic of a legally enforceable contract, in an insurance transaction,
which party makes the offer and which accepts? - Answer-the potential insured make the offer by
applying for coverage and submitting a premium, the company accepts by issuing the policy.
Which of the following best describes the thing of value exchanged for the performance promised in a
contract? - Answer-Consideration
The voluntary giving up of a known right or privilege is termed a: - Answer-Waiver
When an insurance contract is referred to as aleatory, this means: - Answer-equal value is not given by
both parties
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