Review Practice Questions Study Guide Graded A+

Which of the following protects consumers against the circulation of inaccurate or obsolete personal or financial information? a. Consumer Privacy Act b. The Fair Credit Reporting Act c. Unfair Trade Practices Law d. The Guaranty Association {Ans: B}An insured pays a $100 premium every month for his insurance coverage, yet the insurer promises to pay $10,000 for a covered loss. What characteristic of an insurance contract does this describe? a. Good Health b. Adhesion c. Conditional d. Aleatory {Ans: D.}Another name for a substandard risk classification is? a. elevated b. consumer report c. inspection report d. Agent's report {Ans: B}Which of the following will be included in a policy summary? a. Primary and Secondary beneficiary designations b. Premium amounts and surrender values c. Copies of all illustrations and application d. Comparisons with similar policies {Ans: B}An insured stated on her application for Life Insurance that she had never had a heart attack, when in fact she had a series of minor heart attacks last year for which she sought medical attention. Which of the following will explain the reason a death benefit claim is denied? a. Waiver b. Utmost c. Estoppel D. Material Representation {Ans: