Florida 2-15 Final Exam

All of the following statements are true regarding an Ordinary (Straight) Life policy EXCEPT {Ans: It does not have a guaranteed death benefit.}Which statement best describes agreement as it relates to insurance contracts? {Ans: One party accepts the exact terms of the other party's offer.}If a basic medical insurance plan's benefits are exhausted, what type of plan will then begin covering those losses? {Ans: Supplementary major medical}In addition to participation requirements, how does an insurer guard against adverse selection when underwriting group health? {Ans: By requiring that the insurance be incidental to the group}When one insurer buys insurance from another company to minimize the effects of catastrophic losses, they are {Ans: Reinsuring}Life insurance creates an immediate estate. Which of the following best explains this statement? {Ans: The face value of the policy is payable to the beneficiary upon the death of the insured.}