CH5 VA State and Health Exam Questions with accurate answers. 2022/2023. Rated A

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CH5 VA State and Health Exam Questions with accurate answers. 2022/2023. Rated A When an insured makes truthful statements on the application for insurance and pays the required premium, it is kn... own as which of the following? A) Acceptance B) Consideration C) Legal purpose D) Contract of adhesion - ✔✔B) Consideration Under what conditions would a contract between an insurer and prospective insured be legal? A) The applicant has been convicted of a felony B) The applicant is drunk at the time of application C) The applicant is a 12-year-old student D) The applicant is high on methamphetamine's at the time of application. - ✔✔A) The applicant has been convicted of a felony Insurable interest can be best described by which of the following? A) The applicant must experience a financial loss due to an accident or sickness that befalls the insured. B) The insured must be genuinely interest in the life of the applicant C) All beneficiaries need to have notification of their status. D) It is not necessary for the insured to be aware of the insurable interest or give permission for the insurance that is to be written - ✔✔A) The applicant must experience a financial loss due to an accident or sickness that befalls the insured. In forming an insurance contract, when does acceptance usually occur? A) When an insurer receives and application B) When an insurer accepts an application C) When an insurer approves a prepaid application D) When an insured receives the policy - ✔✔C) When an insurer approves a prepaid application An insurance contract must contain all of the following to be considered legally binding EXCEPT A) Beneficiary's consent B) Offer and acceptance C) Consideration D) Competent parties - ✔✔A) Beneficiary's consent A life insurance policy has a legal purpose if there are both A) Insurable interest and consent B) Beneficial interest and consent C) Underwriting interest and consent D) Actuarial interest and consent - ✔✔A) Insurable interest and consent Who makes up the Medical Information Bureau? A) Doctors B) Insurers C) Hospitals D) Consumers - ✔✔B) Insurers The Medical Information Bureau, which is support by insurance companies, was designed to protect A) Insurance companies from adverse selection by high risk person. B) Insurance departments from suits by policyowners C) Insureds from unreasonable underwriting requirements by the insurance companies D) Medical examiners that perform insurance physical examniations - ✔✔A) Insurance companies from adverse selection by high risk person. Which of the following best describes the MIB? A) Its a governmental agency that collects medical information on the insured from the insurance companies B) Its a member organization that protects insured against insolvent insurers C) Its a rating organization for health insurance. D) Its a nonprofit organization that maintains underwriting information on applicants for life an health insurance - ✔✔D) Its a nonprofit organization that maintains underwriting information on applicants for life an health insurance What are the members of the Medical Information Burea required to report? A) Adverse medical information about individuals B) Any claims an individual has made C) Information about unpaid hospital bills D) Information about an individual's intentional injuries - ✔✔A) Adverse medical information about individuals Who must pay for the cost of a medical examination required in the process of underwriting? A) Insurer B) Applicant C) Underwriters D) Department of Insurance - ✔✔A) Insurer If an applicant does not receive his or her policy, who would be held responsible? A) The insurer B) The applicant C) The agent D) The state - ✔✔C) The agent In a replacement situation, all of the following must be considered EXCEPT A) benefits B) Limitations [Show More]

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