IDAHO LIFE INSURANCE EXAM

PDF Download

IDAHO LIFE INSURANCE EXAM

Actual Qs and Ans - Expert-Verified Explanation -Guaranteed passing score -100 Questions and Answers

-Format: Multiple-choice / Flashcard

Question 1: Foreign Insurer

Answer:

An insurance company that is incorporated in another state.

Question 2: Face

Answer:

The first page of a policy.

Question 3: Accidental Death Benefits

Answer:

A policy rider that states that the cause of death will be analyzed to determine if it complies with the policy description of accidental death.

Question 4: Commingling

Answer:

A practice in which a person in a fiduciary capacity illegally mixes his/her personal funds with funds he/she is holding in a trust.

Question 5: Contract

Answer:

An agreement between two or more parties enforceable by law.

Question 6: Appication

Answer:

A document that provides information for underwriting purposes. After the policy is issued, any unanswered questions are considered waived by the insurer.

Question 7: Insolvent organzation

Answer:

A member organization which is unable to pay its contractural obligations and is placed under a final order of liquidation or rehabilitation by a court of competent jurisdiction.

Question 8: Authorized (Admitted) Insurer

Answer:

An insurance company authorized and licensed to transact business in a particular state.

Question 9: Convertible

Answer:

A policy that may be exchanged for another type of policy by contractual provision, at the option of the policyowner, and without evidence of insurability (ex. term life changed to a form of permanent life).

Question 10: Buy-Sell Agreement

Answer:

A legal contract that determines what will be done with a business in the event that an owner dies or becomes disabled.

Question 11: Credit Life Insurance

Answer:

A special type of coverage written to pay off the balance of a loan in the event of the death of the debtor.

Question 12: Endorsement

Answer:

A form changing the provisions of and attached to a life insurance policy (aka a rider).

Question 13: Domicile of Insurer

Answer:

Insurer's location of incorporation and the legal ability to write business in a state.

Question 14: Buyer's Guide

Answer:

A booklet that describes insurance policies and concepts, and provides general information to help an applicant make an informed decision.

Question 15: Defamation

Answer:

An unfair trade practice in which one agent or insurer makes injurious statement about another with the intent of harming the person's or company's reputation.

Question 16: Adjuster

Answer:

A representative of an insurance company who investigates and acts on behalf of the company to obtain agreements for the amount of the insurance claim.

Question 17: Earned Premium

Answer:

The amount of the premium for which the policy protection has been given.

Question 18: Decreasing Term

Answer:

A type of life insurance that features a level premium and a death benefit that decreases each year over the duration of the policy.

Question 19: Expiration

Answer:

The date specified in the policy as the date of termination.

Question 20: Implied Authority

Answer:

Authority that is not expressed or written into the contract, but which the agent is assumed to have in order to transact the business of insurance for the principal.

Question 21: Effective Date

Answer:

The date when an insurance policy begins (aka inception date).

Question 22: Coordination of Benefits

Answer:

A provision that helps determined the primary provider in situations where an insured is covered by more than one policy, thus avoiding claims overpayments.

Question 23: Free Look

Answer:

A period of time, usually required by law, during which a policyowner may inspect a newly issued individual life or health insurance policy for a stated number of days and surrender it in exchange for a full refund of premium if not satisfied for any reason.

Question 24: Annuity

Answer:

A contract that provides income for a specified period of years, or for life.

Question 25: Domestic Insurer

Answer:

An insurance company that conducts business in the state of incorporation

Question 26: Aleatory

Answer:

A contract in which participating parties exchange unequal amounts. Insurance contracts are aleatory in that the amount the insured will pay in premiums is unequal the the amount the insurer will pay in the event of a loss.

Question 27: Fraternal Benefit Societies

Answer:

Life or health insurance companies formed to provide insurance for members of an affiliated lodge, religious organization, or fraternal organization with a representative form of government.