Completing the Application, Underwriting, Delivering Policies, Contract Law
Which of the following facts most directly establishes an individual's legal capacity to enter into a life insurance contract?
Answer and explanation
Answer: C. Competent parties must have legal capacity to contract. Texas expressly permits an individual of legal age to apply for insurance on the individual's own life and make written ownership and beneficiary designations.Source: Texas Legislature — Texas Insurance Code Chapter 1103 — § 1103.054, individual of legal age may apply and designate
More completing the application, underwriting, delivering policies, contract law questions
- An investor offers to fund a new policy only if the applicant agrees at inception to transfer it for settlement. What is the main concern?
- An owner receives a replacement life policy approved under the Insurance Compact standards and decides during the required review period that it is unsuitable. What action preserves the free-look remedy?
- An underwriter wants to obtain an applicant's medical records from a treating physician. What is required first?
- At delivery, a client is confused about a rider and an exclusion. What should the producer do?
- Because insurance contracts are contracts of adhesion prepared solely by the insurer, how do courts resolve genuine ambiguities in policy wording?
- During policy delivery, the owner notices a typo in the beneficiary's middle name. How should the producer assist?
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