Completing the Application, Underwriting, Delivering Policies, Contract Law
What does the term 'unilateral' mean in relation to a life insurance contract?
Answer and explanation
Answer: B. In a unilateral contract, only the insurer makes an enforceable promise to pay claims. The owner is not legally bound to pay premiums.Source: SC DOI Prelicensing Outline — Topic Outline page 12
More completing the application, underwriting, delivering policies, contract law questions
- A producer notices that the applicant marked yes to a medication question but left the requested details blank. What is the best next step?
- A producer submits a life insurance application for a client. Before requesting a credit and background consumer report from a reporting agency, which permissible purpose under FCRA allows the insurer to proceed?
- A producer tells an applicant, 'I can change the receipt so coverage starts today even though its stated conditions are unmet.' Which response is accurate?
- A statement in a life insurance application is treated as a representation rather than a warranty. What must an insurer show to contest the policy on that basis?
- A suspicious transaction involving a covered insurance product is identified from facts supplied by an agent. Who bears the direct federal obligation to report the suspicious transaction?
- A Texas life insurer asks an applicant to take an HIV-related test for underwriting. What must occur before the test?
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