Florida 2-15 Insurance Questions And Answers

Mrs. Williamson purchases a five year, $50,000 term policy with an option to renew. Which of the following statements about the policy's renewability is CORRECT A. the premium for the renewal period will be the same as the initial period B. the premium for the renewal period will be higher than the initial period C. the premium for the renewal period will be the same as the initial period, but a one-time service charge will be assessed upon renewal D. the premium for the renewal period will be lower than the initial period {Ans: B. Premiums for the renewal period will be higher because of the insured's advanced age and, thus, increased risk.}Which of the following statements describes the parol evidence rule? A. a written contract cannot be changed once it is signed B. an oral contract cannot be modified by written evidence C. a written contract cannot be changed by oral evidence D. an oral contract takes precedence over any earlier written contract {Ans: C. The parol evidence rule states that when parties put their agreement in writing, all previous verbal statements come together in that writing, and a written contract cannot be changed or modified by