And Health Insurance Study Guide Graded A+

in regards to a life insurance policy or an annuity contract, all statements made on the application are considered to be: A. guaranteed B. warranties C. representations D. irrevocable {Ans: C. representations}Why are insurance contracts said to be contracts of adhesion? A. conditions are placed on the insurers promise to perform B. the values exchanged are not equal C. only one party makes a legally enforceable promise D. one party writes the contract and the other party must accept the contract as written {Ans: D. one party writes the contract and the other party must accept the contract as written}an insurance company that cedes a portion of an insured's coverage to another insurer is said to be engaged in: A. transference B. reinsurance C. participation D. mutuality {Ans: B. reinsurance}A life insurance producer's agency agreement normally authorizes the licensee to do all of the following EXCEPT: A. solicit insurance B. sell insurance C. issue policies D. collect premiums {Ans: C. issue policies}which of the following statements does NOT describe an element of an insurable risk? A. the loss must not be due to chance B. the loss must be definite C. the loss cannot be catastrophic