NC State LIFE Insurance Exam Questions and Answers Already Graded A
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Course
NC State LIFE Insurance
Institution
NC State LIFE Insurance
NC State LIFE Insurance Exam Questions and Answers Already Graded A
Insurable Interest - Something of value that, if lost, would cause you financial harm. Must exist upfront at time of application. Legitimate financial reason for buying insurance.
Impersonation - Wrong person takes medical ...
NC State LIFE Insurance Exam Questions and Answers Already Graded A Insurable Interest -✔✔ Something of value that, if lost, would cause you financial harm. Must exist upfront at time of application. Legitimate financial reason for buying insurance. Impersonat ion -✔✔ Wrong person takes medical examination/test in connection with application for insurance. **Can be contested beyond 2 year incontestable clause** Adhesion -✔✔ Ins. Co. designs original contract. Insured has little or no control of content, no room for bargaining, no negotiations. Insured must take it or leave it. Indemnity -✔✔ Person restored to original condition he/she enjoyed prior to loss. Does not profit a gain from the insurance. Aleatory -✔✔ Ins. contract is "out of balance". Insured o r bene might receive much more than he she pays into the policy or may pay premiums for a long time and yet have no loss. Conditional -✔✔ Ins. contract is conditional. Both parties must meet conditions. Even when a loss occurs. Ex) Life Ins. policy only pays on condition that proof of death is provided. Reinsurance -✔✔ Ins. between ins. co's. Ins. co's go to each other for help. Ex) A given risk is not acceptable to an ins. co. due to adverse medical/underwriting considerations or large amt of ins. invo lved is over co's retention limit Misrepresentation/Concealment -✔✔ Making misleading statements. Intentionally misrepresenting benefits, terms of policy. Concealing known material facts. Ex) Implying ins. policy equates shares of stock, implying dividen ds are guaranteed, overstating future values Interested Adjusted Cost Comparisons -✔✔ Similar policies are compared & int. is taken into account. Cost determined by considering int. that might have been earned on premiums had they been invested. (Surrend er Cost Index measured at 10 & 20 years) Traditional Net Cost Comparisons -✔✔ Similar policies compared without taking the effect of int. into account. (Net Payment Cost Index measured at 10 & 20 yrs) Capital Stock ("Stock") -✔✔ Ins. Co. owned by stock holders. Ex) Lincoln Financial Mutual Insurance Company -✔✔ Ins. Co. owned by the policyholders. Ex) State Farm, NW Mutual Fraternal Benefit Societies -✔✔ Under jurisdiction of Dept. of Ins. -nonprofit org. -a society, voluntary assoc. or corp. -cannot issue capital stock -org. solely for mutual benefit of members & their families -must have lodge system w/ ritualistic form of work -do not issue any prop/liability pol. (No homeowners/auto ins) -agents who sell to captive audience must be lice nsed by NCDOI Ex) International Order if the Forester, Woodland of the World Health Maintenance Organization (HMO) -✔✔ Form of Ins. Co. Ownership Commissioner of Insurance -✔✔ Elected by the ppl for period of 4 yrs. Oversees state's dept. of ins. Appro ves rates, but does not set them. Authority to give notice of hearing regarding violation, notice must specify time & place of hearing & take place no less than 10 days after notice served.
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