Completing the Application, Underwriting, Delivering Policies, Contract Law
Why is an insurance contract classified as a conditional contract?
Answer and explanation
Answer: A. Insurance contracts are conditional because performance depends on satisfaction of contractual conditions (like proof of loss).Source: SC DOI Prelicensing Outline — Topic Outline pages 12-13
More completing the application, underwriting, delivering policies, contract law questions
- A life application authorizes the insurer to obtain information from a third-party provider but does not describe the information or provider type. What is missing?
- A life insurance policyowner may stop paying premiums at any time without legal penalty, but the insurer is legally bound to pay the death benefit if the insured dies while the policy is in force. This situation best illustrates which legal characteristic of an insurance contract?
- A parent applies for life insurance on a 9-year-old child. Who must sign the application besides the producer?
- A policy is arranged at inception solely so an unrelated investor can wager on the insured's death. Which required element of a legal contract is most directly missing or violated?
- A policy is issued as applied for and delivered while the insured is alive, but the owner refuses to pay the first premium. Under the standard application agreement, what follows?
- A policyowner argues that because an insurance policy is a contract of adhesion, any disputed term should automatically be construed against the insurer. Which statement provides the most accurate legal response to this argument?
590 Texas questions like this one.
Every answer explained, the ones you miss come back on a spaced schedule, and a plan built from your exam date.