Life Insurance 101 (Primerica) with complete verified solutions 2025
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Course
Primerica
Institution
Primerica
Agreement
(Offer and acceptance) an offer, followed by an acceptance. The application and initial premium, if collected from the proposed insured is the offer, and the insurance company approving the application and issuing a policy is the acceptance.
Consideration
The exchange of somethin...
Life Insurance 101 (Primerica) with complete
verified solutions 2025
Agreement - answer (Offer and acceptance) an offer, followed by
an acceptance. The application and initial premium, if collected from
the proposed insured is the offer, and the insurance company
approving the application and issuing a policy is the acceptance.
Consideration - answer The exchange of something of value for a
service, such as the exchange of premiums for insurance coverage.
Competent Parties - answer Have legal capacity to enter into a
contract. Parties to a contract must be of legal age, sane, sober of
sound mind.
Legal Purpose - answer The purpose of an insurance contract must
be legal.
Contract of Adhesion - answer "Take it or leave it", any
"ambiguities in the wording of the contract" will be resolved in favor
of the policyowner.
Aleatory Contract - answer an unequal exchange of value.
Unilateral Contract - answer one-sided contract, only one party
makes any promises.
Conditional Contract - answer Certain conditions must be met to
pay the claim, if...
Warranty - answer A statement guaranteed to be true (The
absolute truth)
, Representation - answer A statement believed to be true to the
best of one's knowledge.
Misrepresentation - answer False statement (a lie)
Legal Contracts - answer A contract is a legally binding agreement
between two or more legally competent parties. To form a valid
contract, 4 elements are necessary.
Insurable interest - answer must exist between the individual
whose life will be covered on the policy (called the insured) and the
applicant, meaning the individual who fills out the application and
applies for insurance.
Buyer's Guide - answer General information that explains
insurance for the consumer to aid their decision-making regarding
insurance.
Policy Summary - answer Specific information on the policy that is
being sold to the consumer. It must include information on
premiums, dividends, benefits and cash values. It must identify the
agent, insurer, the policy and each rider.
Illustrations - answer a presentation or depiction that includes
nonguaranteed elements of a policy of individual or group life
insurance over a period of years. A life insurance illustration must
distinguish between guaranteed and projected amounts. An agent
may only use the illustrations of the insurer that have been
approved and may not change them in any way.
Underwriting - answer is the process of selecting and categorizing
risks into similar groups and assigning the appropriate premium
amount to each group.
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