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Kentucky Health & Life Exam Questions and Answers (Commonwealth Schools of Insurance - PT 3)
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Kentucky Health & Life Exam Questions and Answers (Commonwealth Schools of Insurance - PT 3)
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Kentucky Health & Life (CommonwealthSchools of Insurance - PT 3)
In an insurance policy application, the person whose life is being insured is the: - Answer-proposed
insured
In an insurance policy application, the person making the application: - Answer-- is the applicant
- may/may not be the insured
In an insurance policy application, what do we know for sure about the policyowner? - Answer-- the
policyowner pays the premiums and usually holds the rights under the policy.
All of the following are correct statements about insurance applications: - Answer-- it is a formal
request for an insurance policy.
- the insurance company uses the information on the application in its decision to issue the policy.
- in the application, the applicant implies that the information provided is truthful and accurate to the
best of his knowledge
Which of the following best describes the signatures required on an insurance application? - Answer--
the applicant, the proposed insured (if the applicant is not the proposed insured), and the agent
,What happens if a person makes a mistake on an application for insurance? - Answer-- changes may be
made on the application with the applicant initialing the changes.
A statement on an insurance application believed to be true to the best of a person's knowledge, but
not actually a guarantee to be true, is a: - Answer-representation
A statement made with such certainty that it is guaranteed to be true is a: - Answer-Warranty
All of the following are true of statements made on an insurance application: - Answer-- no statement
made on an insurance application is a warranty.
- a false representation on an insurance application is a misrepresentation.
- statements made on an insurance application are representations
The following are elements of fraud: - Answer-- an intentional misrepresentation of a material fact
made by a person;
- with intent to gain advantage; and
- relied upon by a second party that suffers a loss.
Which of the following is an element of fraud? - Answer-intent
Withholding a material fact is termed: - Answer-concealment
Which of the following is collected by the agent at the time of an insurance application as a receipt for
the first full payment of premium? - Answer-Conditional Receipt
After an insurance application has been made and a conditional receipt has been issued, if the insured
should die before the policy is issued, - Answer-- the proceeds will be paid to the beneficiary if the
, company would have issued the policy; - the premium will be returned if the company would not have
issued the policy.
The following are true of a life insurance policy's effective date: - Answer-- it provides full protection as
of that date.
- it established the date on which the incontestable period begins.
- although the premium may be paid earlier, it provides coverage as of that date.
Backdating an insurance policy to a date earlier than that on the application: - Answer-generally cannot
exceed six months
If the proposed insured dies before the policy is issued but while in the possession of a Conditional
Receipt, a company - Answer-will pay the policy proceeds only if it would have issued the policy to the
proposed insured had he or she been living
There is a tendency for people more likely to experience a loss to seek insurance than those less likely to
experience a loss. The statement illustrates the theory of: - Answer-adverse selection
The chance of uncertainty or loss is termed: - Answer-risk
Insurance cannot be used to handle: - Answer-speculative risk
A speculative risk is one in which there exists: - Answer-both the possibility of loss and the possibility of
gain
Insurance can be used to handle only - Answer-Pure risk
Which of the following best describes pure risk? - Answer-that with only the possibility of loss
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