C) Materiality of concealment there must be legal reasons for entering into the contract conditional Under a life insurance policy, what does the insuring clause state? 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? The terms of the policy typically outline these conditions, which may include paying premiums on time and maintaining the insured property in good condition. Andy the annuitant dies before the annuity start date. Which of the following would be considered an underwriting duty of an agent? The insurers obligation to pay a death benefit upon an approved death claim. C) the contract has been prepared by one party (the insurance company) with no negotiation between the applicant and the insurer Active Status Results Leave, A provision that allows a policyowner to temporarily give up ownership rights to secure a loan is called a(n) automatic premium loan nonforfeiture option collateral assignment irrevocable assignment, Period of time after the premium is due but the policy remains in force, What is an insurance policy's grace period? Which statement is CORRECT when describing a contract of adhesion? 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? C) A contract where one party adheres to the terms of the contract Which of the following BEST describes a conditional insurance contract? C) Only the insurer is legally bound Under the McCarran-Ferguson Act, what is the minimum penalty for this? Declarations Entire contract Waivers Conditions, A whole life policy option where extended term insurance is selected is called a(n) dividend option settlement option nonforfeiture option interest-only option, Which of these would limit a company's liability to provide insurance coverage? 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. D) only one party makes any kind of enforceable promise, C) the terms must be accepted or rejected in full, What is implied authority defined as? What kind of policy is this? C) Business partners This is called risk retention preexisting conditions law of large numbers adverse selection, What is known as the immediate specific event causing loss and giving rise to risk? In a life or health insurance contract, "consideration" would be the, statements made in the application and the premium, A professional liability for which producers can be sued for mistakes of putting a policy into effect is called. Vegetable B. Because of this, an insurance contract is considered 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. A type of group that has a constitution and bylaws and has been organized for purposes other than obtaining insurance is called a(n). 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". An insurance applicant with a below-average likelihood of loss is typically considered to be a. Premium clause If the annuitant dies before the annuity start date, The premiums paid plus interest earned will be given to the beneficiary, Anyone who makes a fraudulent statement on an insurance application in order to obtain benefits from an insurance company. A) when any business relationship exists A Modified Endowment Contract (MEC) is best described as A life insurance contract which accumulates cash values higher than the IRS will allow An annuity contract which was converted from a life insurance contract A modified life contract which enjoys all the tax advantages of whole life insurance A life insurance contract where all withdrawals B) acceptance B) Rescind the policy 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. If threats or force is used to affect an insurance transaction, the unfair trade practice of __________ has been committed. a) a conditional acceptance allows the parties to negotiate the definite terms of the contract upon the completion of the contract. A minimum of 12 months after date of purchase, Insurance premium is determined by each of the following factors EXCEPT. 2003-2023 Chegg Inc. All rights reserved. A) fiduciary bond D) Conditional, Which of the following is NOT a requirement of a contract? All of the following are examples of a Business Continuation Plan EXCEPT. What kind of policy is this? 2 See answers Intentional withholding of material facts that would affect an insurance policy's validity is called a(n). A) One party is restored to the same financial position the party was in before the loss occurred B) The unequal exchange of value or consideration for both parties C) One party (the insurance company) prepares the contract with no negotiation between the applicant and insurer D) Only one party (the insurer) makes any kind of enforceable promise Who prosecutes crimes that involve the violation of insurance laws that fall under US Code 1033? What would happen if a life insurance applicant is given a conditional receipt? Q. B) issuance of the policy Both partners are still married at the time of Bob's death. 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. issuance of the policy In order to maintain coverage and make a successful claim, its crucial that policyholders read and understand their insurance contract carefully. A) there is an element of chance and potential for unequal exchange of value or consideration for both parties B) A contract that has the potential for the unequal exchange of consideration for both parties Period of time after the initial premium is paid and before the policy is issued Period of time it takes for a policy's underwriting to complete Period of time after a policy is issued and before it is delivered to policyowner Period of time after the premium is due but the policy remains in force, Life insurance policies will normally pay for losses arising from commercial aviation war suicide hazardous jobs, A policyowner may exercise which of these dividend options that uses the dividend to pay all or part of the next premium due? C.$2,113 Both partners are still married at the time of Bob's death. If thats the case, you dont have to worry anymore. 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. claim forms If xxx actually turns out to be 131313, what do you think of the claim? What is the difference between insurance condition and warranty? The annuitants life expectancy determines the annuity payments, No one may be denied coverage by an insurance company due to, A life insurance rider that allows an individual to purchase insurance as they grow older, regardless of insurability, is called a(n). 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? She is receiving the death benefit in payments of $10,000 per month until the principal and interest has been paid out. Waiver Exclusion Rider Provision, The double indemnity provision in a life insurance policy pertains to an insured's death caused by a(n) sickness suicide accident war, An insurer will accept a premium from the insured and continue the coverage in full force as though it was NOT late during which time period? Which of the following is a TRUE statement? A) Tom's spouse performance is conditioned upon a future occurrence. Which of the following does a life insurance policy summary normally include? Only the insurer is legally bound How could a company manager use a process cost summary to determine if the program to reduce water usage is successful? be in writing Which of the following is an example of the insureds consideration? Apparent C) apparent authority What does the Group Life underwriting risk selection process help protect insurance companies from? Before using an assumed name in Utah, a producer MUST, Maria would like an annuity that provides a guaranteed accumulation or payout. written contract collateral, What is implied authority defined as? The power given to an individual producer that is not specifically addressed in his/her contract is considered what type of authority? How do insurers predict the increase of individual risks? Corporations, like all firms, can raise money by borrowing from banks and other lending institutions. Asked 10/6/2017 7:04:21 AM. 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. B) producer A life insurance contract guarantees to the beneficiary not only a death benefit, but a payment of a sum of money in perpetuity, called a death benefit for that purpose of insurance coverage. An insurer's claim settlement practices are regulated by the Securities and Exchange Commission (SEC) National Association of Claims Adjusters (NACA) National Association of Insurance Commissioners (NAIC) State insurance departments, A life insurance company has transferred some of its risk to another insurer. producer's apparent authority An individual who removes the risk of losing money in the stock market by never purchasing stocks is said to be engaging in. Expert answered| selymi |Points 23307|. C) adhesion Connect the text to your own experiences. B) Equal consideration is required between the involved parties 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 Posted on April 19, 2022 by Ephori London To be enforceable, a contract must be concluded by the competent parties. The coverage, conditions, and limitations in the master policy of a group contract can be found in which document? Which of the following is a requirement to attain an Utah resident producer license? Offering payment of approved claims within 30 days after affirming liability. B) only one party (the insurer) makes any kind of legally enforceable promise Insurance interest does NOT occur in which of the following relationships? B) A contract that has the potential for the unequal exchange of consideration for both parties What is the advantage of adding this rider? Of the following dividend options, which of these is taxable? Which Of The Following Best Describes A Conditional Insurance Contract. D) errors and oversights, In an insurance contract, the insurer is the only party legally obligated to perform. Adjustable life policy Modified life policy Endowment policy Universal life policy, How are survivorship life insurance policies helpful in estate planning? If Sharon MUST obtain Mikes signature in order to change the beneficiary, what kind of beneficiary designations is this? Insurer's promise to pay benefits 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". Group policy Adjustable life policy Whole life policy Endowment policy, A renewable Term Life insurance policy allows the policyowner the right to renew the policy at anytime the policyowner chooses as many times as the policyowner chooses paying the same premium as before the renewal without producing proof of insurability, When a decreasing term policy is purchased, it contains a decreasing death benefit and increasing premiums level premiums decreasing premiums variable premiums, Julie has a $100,000 30-year mortgage on her new home. ______ is NOT an element of a valid contract. Which of these features are held exclusively by variable universal life insurance? B) A contract that has the potential for the unequal exchange of consideration for both parties. B) the contract must be aleatory B) Unequal consideration Sharon is the policyowner of a $500,000 life insurance policy. Which type of life insurance policy is this? Which of these features are held exclusively by variable universal life insurance? In this situation, who will receive Bob's policy proceeds? D) Principal Capacity, A unilateral contract is one in which be signed and witnessed by an attorney Adjustable universal life policy Flexible universal life policy Variable universal life policy Modified universal life policy, Jonas is a whole life insurance policyowner and would like to add coverage for his two children. 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 Options A) A contract that requires certain conditions or acts by the insured individual B) A contract that has the potential for the unequal exchange of consideration for both parties C) A contract where one party "adheres" to the terms of the contract Risk Hazard Indemnity Peril, Insurance companies determine risk exposure by which of the following? they are "take it or leave it" contracts. Eventually, they retire and dissolve the business. D) underwriter, Reasonably necessary acts that an agent must perform for carrying out his/her expressly authorized duties are covered by an agent's Sharing commissions with a producer licensed in the same line of business. the contract must be a contract of adhesion, there must be legal reasons for entering into the contract, What makes an insurance policy a unilateral contract? Consideration clause Rob recently died at age 60. 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. Naming a contingent beneficiary as all surviving children is described as which term? Conditional, Under a contract of adhesion, D) Offer and acceptance must be involved, B) Equal consideration is required between the involved parties, A contract requires offer 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. Adjustable whole life Universal life Decreasing term life Limited whole life, Which type of life insurance policy pays the face amount at the end of the specified period if the insured is still alive? Food C. Plant D. Zucchini. Only the insured pays the premium Which of the following does a producer NOT have a fiduciary responsibility to? the contract must be aleatory C) Authority given to handle claims and process payments C) A contract where one party "adheres" to the terms of the contract. WINDOWPANE is the live-streaming app for sharing your life as it happens, without filters, editing, or anything fake. 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". Which dividend option would an insurer invest the policyowners money and add any interest earnings as the dividends accrue? Which of these statements regarding the annuitant is CORRECT? Sister and brother Parent and children Business partners Business owner and business client, The deeds and actions of a producer indicate what kind of authority? Policy loans are disallowed The premium payments will be tax deductible Pre-death distributions are typically taxable Withdrawals will be prohibited, When a whole life policy is surrendered, income taxes may be owed, All of these statements concerning whole life insurance are false EXCEPT Policyowner can take out a policy loan up to the face amount When a whole life policy is surrendered, income taxes may be owed Coverage is normally temporary The death benefit is not affected by outstanding loans, A life insurance policy which contains cash values that vary according to its investment performance of stocks is called Increasing Term Life Modified Whole Life Variable Whole Life Adjustable Whole Life, Which of these riders will pay a death benefit if the insured's spouse dies? B) Contract of adhesion Which of the following BEST describes a conditional insurance contract? Insurance producer Jerry offers a $350 shopping card if they purchase an insurance product through him. C) statements made in the application and the premium Which type of annuity guarantees a stated number of income payments, whether or not the annuitant is still alive to receive them? Definition refers to a description which is given to a word, idea or phenomenon . If Mike dies first, the policy proceeds will no longer provide insurance protection will go to Mike's estate will be divided by probate will not be paid until the last brother dies, The gap between the total death benefit and the policy's cash value, What is a corridor in relation to a Universal Life insurance policy? According to the Affordable Care Act (ACA), insurers can no longer deny health coverage due to pre-existing conditions unless that plan is a (n) Grandfathered plan Accident plan Individual plan Group plan Grandfathered plan C) Law of Agency A contract that requires certain conditions or acts by the insured individual A contract that has the potential for the unequal exchange of consideration for both parties A contract where one party "adheres" to the terms of the contract Death benefits Cash value Loading costs Separate account investments, Which policy feature makes a universal life policy different from a whole life policy? Coverage decreases automatically Coverage increases automatically Coverage remains as long as proof of insurability is provided Coverage is eliminated, Joe has a life insurance policy that has a face amount of $300,000. warranty Peter has a policy where 80% to 90% of the premium is invested in traditional fixed income securities and the remainder of the premium is invested in contracts tied to a stipulated stock index. How many days is a temporary producers license valid? 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. B) the unwritten authority that the agent is assumed to have $1,000 $3,000 $5,000 $7,000, A nonparticipating company is sometimes called a(n) alien insurer mutual insurer reinsurer stock insurer, Because dividends are considered to be a return of premium, Why are dividends from a mutual insurer not subject to taxation? The policies continue in force with no change. C) Consideration In most insurance policies, the insurer is the only one who makes a legally binding promise to pay insured claims. both parties consent to the contract. Which of the following BEST describes a conditional insurance contract? 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. Insurable interest Insurance exchanges Law of large numbers and risk pooling Population table data, People with higher loss exposure have the tendency to purchase insurance more often than those at average risk. Express The provision that allows this is called Partial Surrender Subrogation Automatic Premium Loan Accelerated Death Benefit, All of these are characteristics of a universal life insurance policy EXCEPT Flexible death benefit Fixed surrender value Flexible premiums Builds cash value, Which of the following policies does NOT build cash value? How often must an insurance producers license in Utah be renewed? D) Consideration, What are an applicant's statements concerning occupation, hobbies, and personal health history regarded as? The present cash value of the policy equals $250,000. How soon can the benefit payments begin with a deferred annuity? C) Insurance carriers Which of the following products would allow him to accomplish this? there is the potential for an unequal exchange of value D) conditions, The authority granted to a licensed producer is provided via the Which of these statements is true? The gap between the total death benefit and the policys cash value. the policy provides a straight, level $100,000 of coverage for 5 years. C) Competent parties 30 seconds. How do marketers use insights regarding the self-concept? A. underwriting A) A contract that requires certain conditions or acts by the insured individual B) A contract that has the potential for the unequal exchange of consideration for both parties C) A contract where one party adheres to the terms of the contract D) A contract where only one party makes any kind of enforceable contract. Lisa has recently bought a fixed annuity. B) Law of adhesion Which of these is considered to be a Living Benefit option in a life insurance policy? The death benefit would be. D) purpose, Which principle is accurately described with the statement "Insureds are entitled to recover an amount NOT greater than the amount of their loss"? Loans obtained by a policyowner against the cash value of a life insurance policy. The terms of the policy typically outline these conditions, which may include paying premiums on time and maintaining the insured property in good condition. Adjustable life policy Variable universal policy Universal policy Modified whole life policy, A securities license is required for a life insurance producer to sell modified life insurance Modified Endowment Contracts (MEC) variable life insurance universal life insurance, The shorter the payment period, the higher the premium, The statement which best describes the relationship between the premiums of a whole life policy and the premium payment period is The shorter the payment period, the lower the premium The longer the payment period, the higher the premium The shorter the payment period, the higher the premium The payment period has no affect on the premium payment, Policyowner has the right to select the investment which will provide the greatest return, Variable life insurance and Universal life insurance are very similar. Only the insured is legally bound, According to the principle of Utmost Good Faith, the insured will answer questions on the application to the best of their knowledge and pay the required premium, while the insurer will deal fairly with the insured and it's 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? Shirley has a $500,000 10-year-non-renewable level term life policy. D) Tom, The deeds and actions of a producer indicate what kind of authority? When the principal gives the agent authority in writing, its referred to as, The terms must be accepted or rejected in full. D) Consideration clause, When the principal gives the agent authority in writing, it's referred to as 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(n) ________ investigates, negotiates, and settles claims for a few on behalf of an insurance company. discreet apparent implied express, Bob and Tom start a business. d. a deductible stated in the policy's provision. Premium clause Consideration clause Adhesion clause Contestability clause, When the principal gives the agent authority in writing, it's referred to as express authority implied authority apparent authority imposed authority, Ambiguities in an insurance policy are always resolved in favor of the insured producer insurer underwriter, ______ is NOT an element of a valid contract. Required fields are marked *. It is a nonprofit organization that maintains underwriting information on applicants for life and health insurance. C) The insured and the insurer contribute equally to the contract. Connect with others, with spontaneous photos and videos, and random live-streaming. the insurer's obligations are dependent upon certain acts of the insured individual One-sided or unfair insurance contracts can, however, exist if they contain provisions that disproportionately benefit one party. B) Parent and children With a life insurance contract, the insurer binds itself to pay a certain sum upon the death of the insured. Insurers must maintain files of all documents used for solicitation for ____ year(s) after the last authorizes date of use. B) Period to which the coverage exists Under the Fair Credit Reporting Act, what is the maximum penalty that may be imposed in Ken? D) A contract where only one party makes any kind of enforceable contract, A) A contract that requires certain conditions or acts by the insured individual, All of the following are elements of an insurance policy EXCEPT Which of the following is NOT considered rebating? In this situation, who will receive Bob's policy proceeds? All of the following are considered appropriate uses if life insurance for business purposes EXCEPT, Protecting the business by covering entry level employees with life insurance, Level premium permanent insurance accumulates a reserve that will eventually. Which of the following best describes how you analyze a fiction text? A) there is the potential for an unequal exchange of value Which of the following is true of the law of contracts? His insurance agent told him the policy would be paid up if he reached age 100. Reduction of premium One year term Paid-up additions Accumulation at interest, All of these are valid policy dividend options for a life insurance policyowner EXCEPT cash outlay to the policyowner accumulate without interest reduction in policy premium buy additional insurance coverage, Kurt is an active duty serviceman who was recently killed in an accident while home on leave. Describe the structure. Which of the following statements is TRUE? In order for a contract to be valid, it must. Which of the following best describes a symbol. Which of the following statements is true? A life insurance policy that is subject to a contract interest rate is referred to as. C) Implied An example of an unfair claims practice would be, Failing to effectuate prompt, fair, and fair equitable settlements of a claim. Policyowner may increase or decrease the premium payments Policyowner may increase or decrease the face amount Policyowner can contribute large sums of money Policyowner has the right to select the investment which will provide the greatest return, All of the following riders can increase the death benefit amount EXCEPT Cost of Living Waiver of Premium Accidental Death Rider Guaranteed Insurability, Which of these is NOT considered to be a common life insurance nonforfeiture option?
Art Of War: Legions Troop Spreadsheet,
Olin Kreutz Gym,
Articles W
