The _______ branch is responsible for interpreting and determining the constitutionality of the statutes.
Judicial
A contract that is drafted by an insurer and receives no input or alteration from the insured, is considered a(n):
Contract of Adhesion
Mutual insurance companies are owned by:
Policyowners
An applicant completes the application and submits it to the insurer along with a premium check. When is applicant's offer considered accepted?
When the insurer issues a policy
Which of the following is NOT considered one of the essential elements of a contract?
Conditions
Statements made on the application by the applicant that are believed to be true to the best of his/her knowledge are:
Representations
______________ manufacture and sell insurance coverage in the form of policies or contracts of insurance.
Insurers
Members of the ______________ include state and territorial insurance commissioners or regulators.
National Association of Insurance Commissioners (NAIC)
Under the Fair Credit Reporting Act, which of the following statements is correct?
If an individual is denied coverage, they can request a copy of the report
The _____________ branch writes and passes state insurance laws, or statutes, to protects the insuring public.
legislative
Dividends issued by Stock insurers are paid to:
Stockholders
Fraternal insurance companies are owned by:
Members
______________ are primarily social organizations that engage in charitable and benevolent activities consisting of members of a given faith, lodge, or order, and are usually organized as non-profits.
Fraternal Benefit Societies
The contract type in which only one party is legally bound to its contractual obligations after a premium is paid is a(n) _____________ contract.
Unilateral
The __________________ has the power to issue rules and regulations to help enforce insurance statutes.
Commissioner
Which of the following manufactures and sells insurance coverage in the form of insurance policies or contracts of insurance?
Insurance companies
A false statement in the application that can render the contract void, if material to the acceptance of the risk, is known as:
Misrepresentation
An insurer issues a policy as "other than applied for," requiring an additional premium of $100. When would an agreement come into being?
When the applicant accepts delivery of the policy and pays the additional premium.
A Statement that a person makes and guarantees to be true is a:
Warranty
The insurance industry is primarily regulated at the _____________ level.
State
An insurer authorized to do business within this state is considered what type of insurer?
a. Foreign
b. Domestic
c. Admitted
d. Certified
Admitted
Before an insurer can operate in this state, it must have which of the following?
Certificate of Authority issued by the state Insurance Department
For the most part, the highest authority for insurance regulation is:
The individual states
Dividends issued by mutual insurance companies:
Are non-taxable refunds (returns) of unused or surplus premiums
One characteristic of life insurance is that the insurer is obligated to pay a claim in the event of the death of the insured, however, the insured is not contractually obligated to do anything other than keep the policy in force. This is a :
Unilateral Contract
____________ refers to the jurisdiction where an insurer was formed or incorporated.
Domicile