Common Questions on Enforceable Contracts, Activities of Daily Living, and Life Insurance Pricing Fa

Enforceable Contracts

(a) Choose the correct statement.
1. An “enforceable” contract is generally formed when the following elements are present:
I. An offer
II. An acceptance of the offer
III. Consideration
IV. An intention to create legal relations
A. I only
B. I, II and III
C. I, III and IV
D. I, II, III and IV
2. Which list correctly identifies the most common list of Activities of Daily Living used to qualify a person for long-term care insurance benefits?
A. Bathing, Eating, Dressing, Toileting, Walking, Transferring
B. Bathing, Eating, Talking, Toileting, Walking, Transferring
C. Bathing, Eating, Talking, Toileting, Mobility, Transferring
D. Bathing, Eating, Dressing, Toileting, Mobility, Transferring
3. Under a life policy’s temporary coverage provision, coverage is provided on a contingent basis, proof of which is typically provided by:
A. A temporary policy
B. A conditional receipt
C. The 14 days free-look certificate
D. A signed sales illustration
4. What are the pricing factors used by insurance companies to determine a life insurance premium rate?
I. Expected mortality
II. Assumed expenses
III. Investment return assumptions
IV. Bonus distribution history
A. I, II and III
B. I, III and IV
C. II, III and IV
D. I, II, III and IV