NC LIFE insurance state exam questions and answers 100% pass
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NC Life Insurance
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NC Life Insurance
NC LIFE insurance state exam questions and answers 100% pass
CREDIT LIFE
a special type of coverage written to the life of the debtor and pay off the balance of a loan in the event of the death of the debtor.
BUY-SELL AGREEMENTS
a legal contract that determines what will be done with a busi...
nc life insurance state exam questions and answers
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NC LIFE insurance state exam questions and
answers 100% pass
CREDIT LIFE
a special type of coverage written to the life of the debtor and pay off the balance of a loan in the
event of the death of the debtor.
BUY-SELL AGREEMENTS
a legal contract that determines what will be done with a business in the event that an owner dies or
becomes disabled. Otherwise known as a business continuation agreement
INSURABLE INTEREST
to purchase insurance the policy owner must face the possibility of losing money or something of
value in the event of loss, insurable interest must exist between the policy owner and the insured at
the time of application
CONCEALMENT
the legal term for the intentional withholding of information of a material fact that is crucial in making
a decision
MISREPRESENTATION
statement that if discovered would alter the underwriting decision of the insurance company
IMPERSONATION
Otherwise known as false pretense, refers to the act of assuming the name and/or identity of another
person for the purpose of committing a fraud
UNILATERAL
only one of the parties to the contract is legally bound to do anything. The insured makes no legally
binding promises however an insurer is legally bound to pay losses covered by a policy in force
ADHESION
a contract of adhesion is prepared by one of the parties (insurer) and accepted or rejected by the
other party (insured). Insurance policies are not drawn up through negotiations, and an insured has
little to say about its provisions. Insurance contract are offered on a take it or leave it basis by an
insurer
INDEMNITY
sometimes known as reimbursement, a provision in an insurance policy that states that in the event
of loss, an insured or beneficiary is permitted to collect only to the extent of the financial loss, and is
not allowed to gain financially because of the existence of an insurance contract. The purpose of an
insurance contract is to restore, but not let an insured or a beneficiary profit from the loss
ALEATORY
an exchange of unequal amounts or values. The premium paid by the insured is small in relation to
the amount that will be paid by the insurer in the event of a loss.
, CONDITIONAL
requires that certain conditions must be met by the policy owner and the company in order for the
contract to be executed and before each party fulfills its obligations.
ELEMENTS OF A VALID CONTRACT
Agreement - Offer and Acceptance, Consideration, Competent Parties, Legal Purpose
TERM LIFE INSURANCE
temporary protection because it only provides coverage for a specific period of time; pure death
protection; if the insured dies during this term, the policy pays the death benefits to the beneficiary; if
the policy is canceled or expires prior to the insured's death, nothing is payable at the end of the
term; there is no cash value or other living benefits
RENEWABILITY
allows the policy owner the right to renew the coverage at the expiration date without evidence of
insurability. The premium will be based on the insured age at the time of renewing
CONVERTIBILITY
provision that provides the policy owner with the right to convert the policy to a permanent insurance
policy without the evidence of insurability. Premium will be based on the insured's attained age at the
time of conversion
WHOLE LIFE INSURANCE
provides lifetime protection and includes a savings element or cash value; endow at age 100 which
means the cash value created by the accumulation of premium is scheduled to equal the face amount
of the policy at age 100
ENDOWMENT
policies that provide a permanent, level death protection if the insured should die prematurely, and
they accumulate cash values; matures (endows) at an earlier age and has a considerable higher
premium. The sooner the policy endows, the higher the premiums.
Single Premium Whole Life (SPWL)
designed to provide a level death benefit to the insured's age 100 for a one-time, lump sum payment.
The policy is completely paid up after one premium and generates immediate cash.
LIMITED-PAY
designed so that the premiums for coverage will be completely paid-up before age 100. Some
versions include 20-pay life where coverage is completely paid for in 20 years, and life paid up at 65
(LP-65) whereby the coverage is completely paid up for by the insured's age 65
LEVEL
policyowner pays the premium from the time the policy is issued until the insured's death or age 100
(whichever comes first)...lowest annual premium.
Adjustable life
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