Completing the Application, Underwriting, Delivering Policies, Contract Law
Which statement correctly separates the aleatory character of a life policy from its conditional character?
Answer and explanation
Answer: D. Aleatory describes the chance-driven inequality of what each side gives and gets. Conditional describes the fact that the insurer pays only when the policy's conditions, such as due proof of death, are met.Source: NAIC Life Insurance Buyer's Guide — The policy as a contract: aleatory and conditional features
More completing the application, underwriting, delivering policies, contract law questions
- Under FCRA, if an insurer orders an investigative consumer report involving personal interviews regarding an applicant's character and lifestyle, when must written notice be sent to the applicant?
- Under FCRA, if an insurer takes an adverse underwriting action (such as declining or rating an applicant) based in whole or in part on a credit report, what notice must the insurer provide to the consumer?
- Under federal USA PATRIOT Act regulations, what threshold cash payment triggers Currency Transaction Reporting (CTR) requirements for financial institutions?
- Under HIPAA, what permits a covered health provider to disclose protected health information to a life insurer for coverage purposes?
- Under Texas Insurance Code Chapter 1111A, why are Stranger-Originated Life Insurance (STOLI) transactions illegal?
- Under Texas law, an individual of legal age applying for insurance on the individual's own life may designate whom in writing in the application?
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