1 - ExamFX Life and Health - General Insurance /
Completing Application, Underwriting and Delivering The
Policy | 50 Questions with 100% Correct Answers
What two elements are necessary to a life insurance contract to have a legal purpose? Correct
Answer: 1. Insurable Interest
2. Consent
Insurance is a contract that protects the insured from what? Correct Answer: Loss
What Type of Risk is Insurable? Correct Answer: Pure
What is the term for the causes of loss insured against in a insurance policy? Correct Answer:
Peril
What Law Protects Consumers from the circulation of inaccurate or obsolete information?
Correct Answer: The Fair Credit Reporting Act
What are the three types of hazards? Correct Answer: 1. Physical
2. Moral
3. Morale
In forming an insurance contract, when does an acceptance usually occur? Correct Answer:
When the insurer approves a prepaid application
An insurance company domiciled in California and transacts insurance in Nevada. What is this
insurer's classification in Nevada? Correct Answer: Foreign
A state-issued document empowering an insurance company to become an admitted insurer is
called what? Correct Answer: Certificate of Authority
What entities make up the Medical Information Bureau? Correct Answer: Insurers
What type of insurer is a voluntarily formed organization that provides insurance benefits for
members of an affiliated lodge or religious organization with representative form of
governtment? Correct Answer: Fraternal Insurers
When would a misrepresentation on an insurance applications be considered fraud? Correct
Answer: When it is intentional and material
Insurance is used to transfer what to the insurance company? Correct Answer: Financial
responsibility of loss.
What type of report provides information about the applicant's hobbies, habits, and financial
status? Correct Answer: Inspection report
Completing Application, Underwriting and Delivering The
Policy | 50 Questions with 100% Correct Answers
What two elements are necessary to a life insurance contract to have a legal purpose? Correct
Answer: 1. Insurable Interest
2. Consent
Insurance is a contract that protects the insured from what? Correct Answer: Loss
What Type of Risk is Insurable? Correct Answer: Pure
What is the term for the causes of loss insured against in a insurance policy? Correct Answer:
Peril
What Law Protects Consumers from the circulation of inaccurate or obsolete information?
Correct Answer: The Fair Credit Reporting Act
What are the three types of hazards? Correct Answer: 1. Physical
2. Moral
3. Morale
In forming an insurance contract, when does an acceptance usually occur? Correct Answer:
When the insurer approves a prepaid application
An insurance company domiciled in California and transacts insurance in Nevada. What is this
insurer's classification in Nevada? Correct Answer: Foreign
A state-issued document empowering an insurance company to become an admitted insurer is
called what? Correct Answer: Certificate of Authority
What entities make up the Medical Information Bureau? Correct Answer: Insurers
What type of insurer is a voluntarily formed organization that provides insurance benefits for
members of an affiliated lodge or religious organization with representative form of
governtment? Correct Answer: Fraternal Insurers
When would a misrepresentation on an insurance applications be considered fraud? Correct
Answer: When it is intentional and material
Insurance is used to transfer what to the insurance company? Correct Answer: Financial
responsibility of loss.
What type of report provides information about the applicant's hobbies, habits, and financial
status? Correct Answer: Inspection report
