Completing the Application, Underwriting, and Delivering the Policy
What does the requirement of competent parties mean for a life insurance contract?
Answer and explanation
Answer: B. Competent parties means each side has the legal capacity to enter a contract, which is why capacity questions arise with minors and with persons lacking mental capacity. Legal representation, a license, and the insurer's domicile are not what the element requires.Source: Pearson VUE — Georgia Insurance Examination Content Outlines #121102 — Outline page S2, Competent parties
More completing the application, underwriting, and delivering the policy questions
- An applicant attempts to purchase a single-premium $500,000 life policy using multiple cashier's checks under $10,000 from different banks. What action is the insurer required to take under AML rules?
- An applicant completes an application and pays the initial premium with it. In contract terms, what has the applicant done?
- An applicant gives an insurer a Social Security number and income information to obtain personal life coverage. How does the GLBA Privacy Rule generally classify that information?
- An applicant is offered free coverage and a cash payment by investors who will own the policy after two years. What should the producer conclude?
- An applicant leaves several required questions blank and signs the application anyway. What is the difficulty?
- An applicant mentions a health condition to the agent, but it never appears on the application. What follows from the standard agreement language?
592 Georgia questions like this one.
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