IMPORTANCE OF INSURANCE

1) In any contract there must be an exchange of value between the contracting parties. What is being exchanged in a typical insurance contract between the insured and the insurer (also known as the underwriter)?

2) Define the following concepts:

a) Premium b) Actuary- c) Face of policy- d) Beneficiary-

3) What is a suicide clause?

4) What is an incontestability clause?

5) What is the difference between a lump sum settlement payout and an installment payment settlement? List an advantage of each option.