Adjustable life insurance Decreasing term insurance Increasing term insurance Modified life insurance, A spouse and child can be added to the primary insured's coverage as what kind of rider? D) only when determined by a judge, Xcel Chapter 3 Legal Concepts of the Insuranc, Chapter 3 Exam - Legal Concepts of the Insura, Chapter 4 Exam - Life Insurance - Types of Po, 4 - (Questions) Life Insurance Policies - Pro, Chapter 5: Life Insurance Premiums, Proceeds,, Chapter 4: Type of Insurance Policies Part 1, Chapter 4: Policy Provisions, Options and Rid, Calculus for Business, Economics, Life Sciences and Social Sciences, Karl E. Byleen, Michael R. Ziegler, Michae Ziegler, Raymond A. Barnett, Fundamentals of Engineering Economic Analysis, David Besanko, Mark Shanley, Scott Schaefer, The Cultural Landscape: An Introduction to Human Geography, AP Edition, Marketing Essentials: The Deca Connection, Carl A. Woloszyk, Grady Kimbrell, Lois Schneider Farese, Unit 7 AP Env. It allows for cash advances to be paid against the death benefit if the insured becomes terminally ill. James is the insured on a life insurance policy where his age was misstated on the application. C) Insurable interest Completing all applications and collecting initial premiums. Business partners What was his total bill? Contestability clause, In order for a contract to be valid, it must All of these are typically sources of underwriting information for life or health insurance EXCEPT. b. benefits paid under workers compensation. Who prosecutes crimes that involve the violation of insurance laws that fall under US Code 1033? if the insured lives beyond the 5 years, no benefits are payable. Answer Explanation: A contract that requires certain conditions or acts by the insured individual. Competent parties Offer and acceptance Consideration Legal purpose, What are an applicant's statements concerning occupation, hobbies, and personal health history regarded as? A) there must be an offer and acceptance A) Insurability be filed with the state Which of the following would be a valid reason why a policy premium would be higher than the standard premium? B) errors and omissions only one party makes any kind of enforceable promise, the terms must be accepted or rejected in full, Which type of clause describes the following statement: "We have issued the policy in consideration of the representations in your applications and payment of the first-term premium". The face amount and premium will remain constant over the 10-year period. nonparticipating life insurance policy participating life insurance policy divisible surplus life insurance policy straight life insurance policy, Which of the following is considered to be an event or condition that increases the probability of an insured's loss? The policy may be paid up early by using policy dividends. How many days is a temporary producers license valid? Which type of multiple protection policy pays on the death of the last person? Increasing Term Life policy Nonparticipating policy Modified Whole Life policy Universal Life policy, What is the automatic continuance of insurance coverage referred to as? If the insured dies at any time during the 5 years, his beneficiary will receive the policy's face value. However, corporations also can raise money by selling bonds or issuing additional shares of stock. A) definitions B) A contract that has the potential for the unequal exchange of consideration for both parties Your email address will not be published. C) Law of large numbers producer Use the binomial distribution to find P(x13)P(x \leq 13)P(x13) if the stain removal product's claim is correct. Producers act in a(n) ________ capacity when holding insurance premiums. D) the contract must be a contract of adhesion, C) there must be legal reasons for entering into the contract, Ambiguities in an insurance policy are always resolved in favor of the A) Parties involved must be competent renewal reinstatement resumption renovation, the MEC tends to be an investment vehicle, Pre-death distributions from a modified endowment contract (MEC) receive different tax treatment than other life insurance policies because the MEC has tax deductible premiums the MEC is considered an illegal product the MEC tends to be an investment vehicle the MEC does not accumulate cash value, The face amount and premium will remain constant over the 10-year period, Krissa purchases a 10-year level term life insurance policy that has a death benefit of $200,000. 3. Where would policy proceeds be paid if both the insured and primary beneficiary were killed in the same accident? Who is responsible for assembling the policy forms for insureds? B) premium only The most appropriate description ascribed to the meaning of definition from the options given is ; A precise statement of the qualities of an idea, object or process. aleatory What kind of policy is this? 2. Dorian exercises a nonforfeiture option by using his life policys cash value to purchase an extended term insurance option. C) Consideration When handling premiums for an insured, an agent is acting in which capacity? Dependent term Guaranteed insurability Primary term Family term, Which type of life insurance offers flexible premiums, a flexible death benefit, and the choice of how the cash value will be invested? Which of the following is an annuity that is linked to a market-related index? B) Consideration AzAnswer team is here with the right answer to your question. Which settlement option pays a stated amount to an annuitant, but no residual value to a beneficiary? B) only one party (the insurer) makes any kind of legally enforceable promise D) an offer and acceptance of the contract terms, D) an offer and acceptance of the contract terms, In an insurance contract, the applicant's "consideration" is the Which of the following statements is true? Which of the following BEST describes a conditional insurance contract? State Insurance Departments NAIC Insurance carriers Insurance producers, Intentional withholding of material facts that would affect an insurance policy's validity is called a(n) estoppel concealment adhesion misrepresentation, The power given to an individual producer that is not specifically addressed in his/her contract is considered what type of authority? A) Legal B) Apparent Definition refers to a description which is given to a word, idea or phenomenon . During periods of inflation, annuitants will experience a decrease in purchasing power of their payments. What type of life insurance could she purchase that is designed to pay off the loan balance if she dies within the 30-year period? apparent How do marketers use insights regarding the self-concept? Which of the following BEST describes a conditional insurance contract? Asked 10/6/2017 7:04:21 AM. What is the difference between insurance condition and warranty? B) issuance of the policy The two major actions required for a policyowner to comply with the Reinstatement Clause are, Provide evidence of insurability, pay past due premiums, The term which describes the fact that both parties of a contract may NOT receive the same value is referred to as. What is this called? B) Period to which the coverage exists Barbaras policy includes a rider which allows her to purchase additional insurance at specific dates or events without evidence of insurability. Only the insurance company has legal obligations. Only the insured pays the premium Only the insured can change the provisions Only the insurer is legally bound Only the insured is legally bound, A professional liability for which producers can be sued for mistakes of putting a policy into effect is called fiduciary bond errors and omissions fiduciary trust errors and oversights, In order for a contract to be valid, it must be filed with the state be signed and witnessed by an attorney be in writing contain an offer and acceptance, Which type of clause describes the following statement: "We have issued the policy in consideration of the representations in your applications and payment of the first-term premium". A) Express authority A rating from a rating service company, such as A.M. Best An illustration A sales presentation Direct mailing from an agency, Fraternal Benefit Society has each of the following characteristics EXCEPT Incorporated Without capital stock Exist For profit Exist for the benefit of its members, A plan in which an employer pays insurance benefits from a fund derived from the employer's current revenues is called A self-derived plan A multiple-employer plan A blanket plan A self-funded plan, An insurer's ability to make unpredictable payouts to policyowners is called investment values liquidity assets capital, Ken is a producer who has obtained Consumer Information Reports under false pretenses. D) Authority given to an agent to act outside the scope of the agency agreement, B) Authority that is not specifically given to an agent in the agency contract, but that an agent can reasonably assume to carry out his/her duties, Legal purpose is a term used in contract law meaning A Modified Endowment Contract (MEC) is best described as, A life insurance contract which accumulated cash values higher than the IRS will allow, Doctors pooling their money to cover malpractice exposures, The free-look provision gives the policyowner, The right to return the policy for a full refund within a specified number of days. Which scenario would most life insurance policies exclude coverage for? Insurer's promise to pay benefits The face amount and policy premium are not affected by the payment Before payment of the benefit is made, specific conditions must exist, such as suffering from a terminal illness There may be a dollar limit on the maximum benefit The benefit can be offered as a rider at a specific extra cost or may be at no cost, Which of the following is NOT part of an insurance contract? D) errors and oversights, In an insurance contract, the insurer is the only party legally obligated to perform. Because of this, an insurance contract is considered Business owner and business client, The power given to an individual producer that is not specifically addressed in his/her contract is considered what type of authority? A) Insurer's promise to pay benefits She is receiving the death benefit in payments of $10,000 per month until the principal and interest has been paid out. Since each partner contributes an important element to the success of the business, they decide to take life insurance policies out on each other, and name each other as beneficiaries. the contract must be aleatory Assume that the product will be tested on 202020 randomly selected stained garments, and let xxx denote the number of these garments from which the stains will be completely removed. B) Law of adhesion 1 pt. Adjustable life Credit life Modified life Universal life, Whole life policy with premiums paid up after 20 years, Which of these would be the best example of a limited pay life insurance policy? Policy Summary Buyer's Guide Entire Contract Entire Policy, It allows for cash advances to be paid against the death benefit if the insured becomes terminally ill, What is the purpose for having an accelerated death benefit on a life insurance policy? A) Only the insured pays the premium Under a life insurance policy, what does the insuring clause state? D) underwriter, Reasonably necessary acts that an agent must perform for carrying out his/her expressly authorized duties are covered by an agent's Peril Hazard Loss factor Liability, Which of these techniques will remove the risk of losing money in the stock market by never purchasing stocks? D) Principal Capacity, A unilateral contract is one in which c. income earned by Pat's spouse. A) producer's apparent authority What kind of policy is this? C) consideration Typically, bilateral contracts involve an equal obligation or. Which of these features are held exclusively by variable universal life insurance? A contract that requires certain conditions or acts by the insured individual This means that the insurer's promise to pay benefits depends on the occurrence of an event covered by the contract. Aleatory Contract: A contract type in which the parties involved do not have to perform a particular action until a specific event occurs. The type of annuity she is seeking is called. If Sharon MUST obtain Mikes signature in order to change the beneficiary, what kind of beneficiary designations is this? Loans obtained by a policyowner against the cash value of a life insurance policy. Sorry, you have Javascript Disabled! there is the potential for an unequal exchange of value the terms must be accepted or rejected in full A) warranty legal reserve, What are an applicant's statements concerning occupation, hobbies, and personal health history regarded as? Restoring an insured to the same condition as before a loss is an example of the principle of. Conditional insurance contracts are insurance policies that require the insured person to satisfy certain conditions in order to become effective and/or to be paid out by the insurer. Authority given in writing to an agent in the agency agreement A contract that requires certain conditions or acts by the insured individual, According to life insurance contract law, insurable interest exists, The term which describes the fact that both parties of a contract may NOT receive the same value is referred to as. An example of an unfair claims settlement practice is, Turning down a claim without providing the basis of denial. A) when any business relationship exists Joint life policy Survivorship life policy Dual life policy Multiple life policy, A life insurance policy that contains a guaranteed interest rate with the chance to earn a rate that is higher than the guaranteed rate is called whole life group life credit life universal life, Can be converted to permanent coverage without evidence of insurability, Donald is the primary insured of a life insurance policy and adds a children's term rider. Determine which insurer offers the best rates Determine which insurer offers the best policies Determine financial strength of an insurance company Determine which agent to use locally, A nonparticipating policy will provide a return of premium provide tax advantages not pay dividends give policyowners special privileges, A rating from a rating service company, such as A.M. Best, Which of the following is NOT considered advertising? C) Competent parties Zucchini is the best descriptive word. 2003-2023 Chegg Inc. All rights reserved. A paid premium Guaranteed Insurability rider Family term insurance rider Family whole insurance rider Payor benefit rider, A partial surrender is allowed in which of the following life policies? Which of these statements regarding the annuitant is CORRECT? A) A contract that requires certain conditions or acts by the insured individual. How does life insurance create an immediate estate? Modified Whole Life Decreasing Term Life Adjustable Life Whole Life, Decreasing term life insurance is often used to provide retirement funds provide coverage for a home mortgage accumulate cash value provide coverage for estate taxes, Which of these is NOT subject to income taxation under a Modified Endowment Contract (MEC)? Accumulation at Interest Option Cash Dividend Option Paid-Up Additions Option One-Year Term Dividend Option, The policy may be paid up early by using policy dividends, Pat owns a 20-pay life policy with a paid-up dividend option. Expert answered| selymi |Points 23307|. C) insurer Under the Fair Credit Reporting Act, what is the maximum penalty that may be imposed in Ken? imposed authority, In an insurance contract, the element that shows each party is giving something of value is called Which of the following BEST describes a conditional insurance contract? Consideration clause fichoh. Rob recently died at age 60. Authority given to handle claims and process payments claim forms C.$2,113 c) a contract must be in writing. Within how many days must a licensee notify the Commissioner of a change in address? A person who is a nonsmoker, of average weight, and in excellent health would most likely be in which risk classification? The above question Which of the following BEST describes a conditional insurance contract?, Was part of Insurance MCQs & Answers. A policyowner can receive a percentage payment of the death benefits prior to death by using what kind of contract? B) at the time of application The policy automatically converts to whole life after the 10-year period The face amount will remain constant and the premium will increase over the 10-year period The premium will remain constant and the face amount will increase over the 10-year period The face amount and premium will remain constant over the 10-year period, will no longer provide insurance protection, Shawn, Mike, and Dave are brothers who have a $100,000 "first to die" joint life policy covering all three of their lives. D) Utmost good faith, What does the insurance term "indemnity" refer to? Variable life insurance and Universal life insurance are very similar. d. a deductible stated in the policy's provision. Loan against the cash value Policy withdrawal Policy dividend Death benefit, A business will typically use which type of life insurance to cover their employees? Elizabeth is the beneficiary of a life insurance policy. Insurance contracts are unilateral contracts. A(n) ________ investigates, negotiates, and settles claims for a few on behalf of an insurance company. His insurance agent told him the policy would be paid up if he reached age 100. B) Contract of adhesion warranty guarantee representation collateral, there must be legal reasons for entering into the contract, Legal purpose is a term used in contract law meaning there must be an offer and acceptance the contract must be aleatory there must be legal reasons for entering into the contract the contract must be a contract of adhesion, In an insurance contract, the element that shows each party is giving something of value is called offer acceptance consideration purpose, What makes an insurance policy a unilateral contract? C) representation After 15 years, the cash value has accumulated to $100,000 and the policy's face amount has become $600,000. A contract that requires certain conditions or acts by the insured individual. The gap between the total death benefit and the policys cash value. Shirley has a $500,000 10-year-non-renewable level term life policy. Returning a portion of a premium as inducement to purchase insurance, An applicant intentionally lying to an insurance company on an application in order to obtain a cheaper premium is an example of, Authority that is not specifically given to an agent in the agency contract, but that an agent can reasonably assume to carry out. Her son, Mike, is the beneficiary. Which of the following is an example of the insureds consideration? B) A contract that has the potential for the unequal exchange of consideration for both parties The present cash value of the policy equals $250,000. B) other insurance A) there is the potential for an unequal exchange of value Which military service exclusion clause would pay upon his death? d) an agreement requires a definite offer and an indefinite acceptance. Premiums paid plus interest earned is returned to the beneficiary. The power given to an individual producer that is not specifically addressed in his/her contract is considered what type of authority? GENERAL LAW OF CONTRACTS A contract is an agreement enforceable by law. What types of life insurance are normally used for key employee indemnification? Only the insured can change the provisions Post thoughts, events, experiences, and milestones, as you travel along the path that is uniquely yours. Expert answered|Malekith22|Points 0| Log in for more information. Craig purchased a life insurance policy for enabling his heirs to pay estate taxes. An example of an unfair claims practice would be, Failing to effectuate prompt, fair, and fair equitable settlements of a claim. Both partners are still married at the time of Bob's death. When initial premium is collected and policy is issued. Because you're already amazing. The terms of the policy typically outline these conditions, which may include paying premiums on time and maintaining the insured property in good condition. Insurer's promise to pay benefits A paid premium Legal purpose Intent, Authority that is not specifically given to an agent in the agency contract, but that an agent can reasonably assume to carry out his/her duties, What is implied authority defined as? A provision that allows a policyowner to withdraw a policys cash value interest free is a(n), The Do Not Call Registry offers exemptions for calls placed from all of the following EXCEPT, All of these are valid options for an Adjustable Life Policy EXCEPT, The policys premium can be increased or decreased, An insurers claim settlement practices are regulated by the. Bob dies 12 months later. The amount of his disability income payments for an on-the-job injury may be reduced by. A) underwriting It is not necessary for the parties to exchange unequal consideration in a conditional insurance contract. What is the meaning of par value of stock with respect to the corporate form of organization? A) offer Legal What is a corridor in relation to a Universal Life insurance policy? D) A contract where only one party makes any kind of enforceable contract, Answer:A) A contract that requires certain conditions or acts by the insured individual. Both partners are still married at the time of Bob's death. Implied Orissa purchases a 10-year level term life insurance policy that has a death benefit of $200,000. b) a contract is an agreement enforceable at law. D) collateral, Express power given to an agent in an agency agreement is Which option was chosen? Consideration Which of the following would be an act of Unfair Discrimination by an insurer? A unilateral contract is one in which only one party makes a legally binding guarantee. (C) Both parties exchange goods of equal value. Since each partner contributes an important element to the success of the business, they decide to take life insurance policies out on each other, and name each other as beneficiaries. Which type of clause describes the following statement: "We have issued the policy in consideration of the representations in your applications and payment of the first-term premium". Which of the following BEST describes a conditional insurance contract? The death benefit would be. When does a life insurance policy typically become effective? Provide funds to help fund retirement Provide funds to help pay taxes Provide funds for funeral expenses Provide tax deductions for premium payments, lower than the typical whole life policy during the first few years and then higher than typical for the remainder, The premium for a Modified whole life policy is higher than the typical whole life policy during the first few years and then lower than typical for the remainder lower than the typical whole life policy during the first few years and then higher than typical for the remainder normally graded over a period of 20 years level for the first 5 years then decreases for the remainder of the policy, The type of policy which pays on the death of the last person is called joint life survivorship life dual life shared life, A life insurance policy that is subject to a contract interest rate is referred to as adjustable life group life term life universal life, a policy that is paid up after only one payment, A single premium cash value policy can be described as a policy that is paid up after only one payment a policy that only requires an annual payment a policy that is guaranteed issue a policy that covers two or more lives, A limited payment whole life policy provides protection for 20 years lifetime protection protection for more than one person discounted premiums, A policyowner may change two policy features on what type of life insurance? Which of the following is NOT considered rebating? 2 See answers B) Bob's estate Which market index is normally associated with an indexed annuitys rate of return? Child term rider Payor rider Family maintenance rider Family income rider, What happens to the coverage under a children's term rider when that child reaches a certain specified age? C) Legal purpose The terms of the policy typically outline these conditions, which may include paying premiums on time and maintaining the insured property in good condition. Eventually, they retire and dissolve the business. A double indemnity benefit will be payable to Matts beneficiary is Matt, All of the following riders can increase the death benefit amount EXCEPT, All of these are valid policy dividend options for a life insurance policyowner EXCEPT, The premium for a Modified whole life policy is, Lower than the typical whole life policy during the first few years and then higher than typical for the remainder, A nonparticipating company is sometimes called a(n), Intentional withholding of material facts that would affect an insurance policys validity is called a(n), Signatures for an insurance application MUST be obtained by the producer from all of the following sources EXCEPT. which of the following best describes a conditional insurance contract? Which of the following is a requirement to attain an Utah resident producer license? A) A contract that requires certain conditions or acts by the insured individual Which of the following best describes a symbol. Julie has a $100,000 30-year mortgage on her new home. A) Contract may be accepted or rejected by the insured, The term which describes the fact that both parties of a contract may NOT receive the same value is referred to as. It is a government agency that collects medical information on the insured from the insurance companies C. It is a member organization that protects against insolvent insurers D. the contract is voidable upon proof of fraud. Waiver of premium Juvenile waiver Guaranteed insurability Payor benefit, Which of the following is a reinstatement condition? Which Of The Following Best Describes A Conditional Insurance Contract. Are you looking for the correct answer to the question Which of the following BEST describes a conditional insurance contract?? Proof of insurabiilty Changes in the insuring clause Premium increase Premium decrease, What is the name of the provision which states that a copy of the application must be attached to the policy when issued? C) negotiation between the involved parties ______ is NOT an element of a valid contract. Law of Agency B) Parent and children C) the authority to represent the insurer D) both the policyowner and the insurer must know all material facts and relevant information, B) only one party (the insurer) makes any kind of legally enforceable promise, Intentional withholding of material facts that would affect an insurance policy's validity is called a(n) Plot this function and determine if she is ready to attempt the Bluenose Marathon. A symbol is a mark, sign or word that indicates, signifies, or is understood as representing an idea, object, or relationship, best describes a symbol. $0 $5,000 $10,000 $15,000, Determine financial strength of an insurance company, What is the primary purpose of a rating service company such as A.M Best? Only the insured pays the premium Intentional withholding of material facts that would affect an insurance policy's validity is called a(n). A policy containing exclusions or limits that are not clearly disclosed to the policyholder, or a premium that is significantly higher than the risk covered, could be considered unfair or one-sided. What kind of policy is this? C) Implied a) a conditional acceptance allows the parties to negotiate the definite terms of the contract upon the completion of the contract. Which of the following products would allow him to accomplish this? (B) Both parties adhere to the contract. (A) Both parties to the contract are bound to the terms. B) Only the insured can change the provisions
Todos os Direitos Reservados à which of the following best describes a conditional insurance contract® 2015
