1 – Exam FX Life and Health - General
Insurance / Completing Application,
Underwriting and Delivering the Policy
What two elements are necessary to a life insurance contract to have a legal purpose? ✔✔1.
Insurable Interest
2. Consent
Insurance is a contract that protects the insured from what? ✔✔Loss
What Type of Risk is Insurable? ✔✔Pure
What is the term for the causes of loss insured against in a insurance policy? ✔✔Peril
What Law Protects Consumers from the circulation of inaccurate or obsolete information?
✔✔The Fair Credit Reporting Act
What are the three types of hazards? ✔✔1. Physical
2. Moral
, 3. Morale
In forming an insurance contract, when does an acceptance usually occur? ✔✔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? ✔✔Foreign
A state-issued document empowering an insurance company to become an admitted insurer is
called what? ✔✔Certificate of Authority
What entities make up the Medical Information Bureau? ✔✔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? ✔✔Fraternal Insurers
When would a misrepresentation on an insurance applications be considered fraud? ✔✔When it
is intentional and material
Insurance / Completing Application,
Underwriting and Delivering the Policy
What two elements are necessary to a life insurance contract to have a legal purpose? ✔✔1.
Insurable Interest
2. Consent
Insurance is a contract that protects the insured from what? ✔✔Loss
What Type of Risk is Insurable? ✔✔Pure
What is the term for the causes of loss insured against in a insurance policy? ✔✔Peril
What Law Protects Consumers from the circulation of inaccurate or obsolete information?
✔✔The Fair Credit Reporting Act
What are the three types of hazards? ✔✔1. Physical
2. Moral
, 3. Morale
In forming an insurance contract, when does an acceptance usually occur? ✔✔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? ✔✔Foreign
A state-issued document empowering an insurance company to become an admitted insurer is
called what? ✔✔Certificate of Authority
What entities make up the Medical Information Bureau? ✔✔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? ✔✔Fraternal Insurers
When would a misrepresentation on an insurance applications be considered fraud? ✔✔When it
is intentional and material
