Mississippi life producer exam Correct Questions & Answers(RATED A)

Which of the following is an insurance company that is organized under the laws of a different state within the United States? - ANSWER Foreign protects the consumer's right to the privacy of credit and financial information, ensuring that all collected data is confidential, accurate, relevant and properly used - ANSWER Fair Credit Reporting Act To indemnify means - ANSWER to compensate for a loss or to make whole Principle of Indemnity - ANSWER insurance is designed to restore an insured to the same physical or financial condition which existed prior to the loss, without a profit or gain In the case of life and health insurance, contract law requires that - ANSWER insurable interest must exist at the time of the application, not the time of the loss Consideration - ANSWER the exchange of value that makes a contract binding. The insured's consideration is the payment of premium, along with an agreement to abide by the conditions of the contract. What is the insurers consideration? - ANSWER The insurer's promise to indemnify in the event of a loss is its consideration, as is specified in the insuring clause of the policy Each of the following is an element of a legal contract, except: - ANSWER indemnity A contract of adhesion - ANSWER the insured must accept the entire contract with all of its terms and conditions(take it or leave it basis) Aleatory contract - ANSWER a contract where the values exchanged may not be equal but depend on an uncertain event unilateral contract - ANSWER Only one party is legally bound to the contractual obligations after the premium is paid to the insurer. Only the insurer makes a promise of future performance, and only the insurer can be charged with breach of contract. Conditional contract - ANSWER Both parties must perform certain duties and follow rules of conduct to make the contract enforceable. The insurer must pay claims if the insured has complied with all the policy's terms and conditions. An insurer authorized to do business in State A, which was incorporated in State B, is considered what type of insurer in State A? - ANSWER Foreign _______________ is the process of selection, classification and rating, and determining if someone is insurable - ANSWER Home office underwriting I