USAA Test || All Questions Answered Correctly.

What type of reinsurance contract involves two companies automatically sharing their risk exposure? correct answers treaty A group-owned insurance company that is formed to assume and spread the liability risks of its members is known as a correct answers risk retention group What is the name of the law that requires insurers to disclose information gathering practices and where the information was obtained? correct answers Fair Credit Reporting Act The stated amount or percent of liquid assets that an insurer must have on hand that will satisfy future obligations to its policyholders is called: correct answers reserves A nonprofit incorporated society that does not have capital stock and operates for the sole benefit of its members is known as: correct answers fraternal benefit society If a contract of adhesion contains questionable language, to whom would the interpretation be in favor of? correct answers insured What is a warranty? correct answers is a statement guaranteed to be true A policy of adhesion can only be modified by whom? correct answers insurance company Stranger Originated Life Insurance (STOLI) has been found to be in violation of which of the following contractual elements? correct answers Legal Purpose (Insurable Interest) Which of these is considered a statement that is assured to be true in every respect? correct answers warranty Which of these is NOT a type of agent authority? correct answers principal The Consideration clause of an insurance contract includes: correct answers the schedule and amount of premium payments What is the consideration given by an insurer in the Consideration clause of the life policy? correct answers Promise to pay a death benefit to a named beneficiary Who makes the legally enforceable promises in a unilateral insurance policy? correct answers insurance company All of the following are considered to be typical characteristics describing the nature of an insurance contract, EXCEPT: correct answers bilateral At what point does an informal contact become binding? correct answers When one party makes an offer and the other party accepts that offer.