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12 Cards in this Set
- Front
- Back
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Describe consideration for a contract? for applicant?
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must be exchange of values. for applicant this would be the premium and app. The consideration is the BINDING FORCE
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Unilateral
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one sided promise... insurer provides promise through contract
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Adhesion
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protects the insured by favor of the court if any language in contract is ambigious
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Aleatory
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unequal bargaining value- policy owner gets a lot of coverage for a small fee
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policy of indemnity
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policy owner is made financially whole after a loss
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Factors affecting premiums:
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age, sex, health history, family health history, personal activities, occupation, salary, foreign travel
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Selection Criteria:
standard risks= substandard= preferred= |
=good health, normal prem. rates
=health probs. charged higher =excellent health. Lower rate |
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Survivorship Whole Life
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pays death benefit upon the last insured's death. cheaper then buying two separate plans.
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Credit Life Insurance
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protects agaist premature death of a borrower before debt or loan is payed off. Decreasing term is used
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Juvenile Life Insurance
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written for children (3rd party ownership) also used as a junior estate builder
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Joint Whole Life
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pays a death benefit and terminates when the first insured dies. exp: to cover spouse
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A).Family Income Plan
B). Family Maintenance Plan ($) |
A). whole life policy w/ decreasing term insurance rider
B). whole life w/ level term rider ($) |
