Questions and Answers
All of the following are included within the Insurance Commissioner's duties EXCEPT:
Which of the following insurance providers must be nonprofit and sell insurance only to its members?
A married couple owns a permanent policy which covers both of their lives and pays the death benefit only upon the death of the first insured. Which policy is that?
The insured under a $100,000 life insurance policy with a triple indemnity rider for accidental death was killed in a car accident. What will the policy beneficiary receive?
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In term policies, what happens to the premium throughout the term of the policy?
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An insurer neglects to pay a legitimate claim that is covered under the terms of the policy. Which of the following insurance principles has the insurer violated?
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When the breadwinner that is insured by a Family Policy dies, what rights are provided to other family members that are covered under the policy?
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Forcing a client to buy insurance from a particular lender as a condition of granting a loan is defined as:
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Study Notes
Insurance Commissioner Duties
- The Insurance Commissioner conducts investigations of domestic insurers, reviews annual reports, and reports violations of laws.
- Writing North Carolina insurance laws is NOT the responsibility of the Insurance Commissioner.
Fraternal Benefit Societies
- Fraternal societies must be nonprofit and can only sell insurance to their members.
- These organizations have a lodge system with rituals and an elected representative government.
Joint Life Policy
- A joint life policy covers two lives and pays out upon the death of the first insured.
- Rates for joint life policies are blended and the policy terminates after the first insured's death.
Triple Indemnity Rider
- A triple indemnity rider pays triple the policy amount for accidental deaths, provided the insured is not at fault.
- In cases where the insured contributes to their own death, the rider is void, but the regular death benefit is still paid.
Premiums in Term Policies
- Premiums for term insurance policies remain level throughout the policy's term.
- Term coverage can be level, increasing, or decreasing, but premium rates do not fluctuate within the term.
Consideration in Insurance Contracts
- Consideration is the binding force in insurance contracts; it includes premium payments and the insurer's promise to pay claims.
- If an insurer fails to pay a legitimate claim, it violates the principle of consideration.
Rights of Family Policy Members
- Family members can convert their term coverage to permanent life insurance without evidence of insurability upon the death of the insured breadwinner.
- This conversion must be requested within the specified timeframe in the policy.
Coercion in Insurance Sales
- Coercion is defined as forcing clients to purchase insurance from a specific lender as a condition for loans.
- This practice is categorized as an unfair trade practice and can lead to penalties.
Proof of Loss Requirement
- When an insurer requests written proof of loss after being notified, it has a procedural obligation to process the claim accurately.
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Description
Test your knowledge on the roles and responsibilities of the Insurance Commissioner, the nature of fraternal benefit societies, and key concepts like joint life policies and triple indemnity riders. This quiz covers essential topics within the field of insurance, providing insights into policy structure and benefits.
