Before using an assumed name in Utah, a producer MUST, Maria would like an annuity that provides a guaranteed accumulation or payout. which of the following best describes a conditional insurance contract What kind of policy is this? C) Authority given to handle claims and process payments C) at the time of death Which of these statements is true? Sorry, you have Javascript Disabled! A (D) Only one party is legally bound to the contract. B) conditional D) Utmost good faith, What does the insurance term "indemnity" refer to? Orissa purchases a 10-year level term life insurance policy that has a death benefit of $200,000. WINDOWPANE is the live-streaming app for sharing your life as it happens, without filters, editing, or anything fake. Answer Explanation: A contract that requires certain conditions or acts by the insured individual. Where would policy proceeds be paid if both the insured and primary beneficiary were killed in the same accident? However, corporations also can raise money by selling bonds or issuing additional shares of stock. the policy provides a straight, level $100,000 of coverage for 5 years. Which of the following best describes a symbol Under the Fair Credit Reporting Act, what is the maximum penalty that may be imposed on Ken? A) producer's apparent authority The type of annuity she is seeking is called. Barbaras policy includes a rider which allows her to purchase additional insurance at specific dates or events without evidence of insurability. Because you're already amazing. Insurance Exam Flashcards | Chegg.com Bob dies 12 months later. Question and answer. 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? When handling premiums for an insured, an agent is acting in which capacity? An insurer exaggerating its dividends in a magazine advertisement. C) Law of large numbers An insurance contract usually involves an exchange of consideration between both parties: the insurer agrees to provide coverage and pay claims in the event of a loss, and the policyholder agrees to pay premiums in return. A unilateral contract is one in which only one party makes a legally binding guarantee. How do insurers predict the increase of individual risks? term, whole, and universal life insurance increasing term insurance joint, credit, and group life insurance adjustable, permanent, and limited-pay life insurance, 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. B) other insurance C) Legal purpose The policies continue in force with no change. Which of the following best describes how you analyze a fiction text? 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? Field underwriting performed by the producer involves, Completing the application and collecting initial premium, An employee under a group insurance policy has the right to name a beneficiary and the right to, Convert to an individual policy in the event of employment termination. How many days is a temporary producers license valid? c. income earned by Pat's spouse. C) Apparent authority 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. 0 Answers/Comments. D) statements made in the application only, C) statements made in the application and the premium, According to life insurance contract law, insurable interest exists Eventually, they retire and dissolve the business. D) conditions, The authority granted to a licensed producer is provided via the Administrative actions taken against a producer must be reported to the Commissioner within ____ days. Identify the type of financing (stock or bond) that best answers the question. D) Tom, The deeds and actions of a producer indicate what kind of authority? Net death benefit will be reduced if the loan is not repaid No interest will be charged on loan balance Term life policies are the only type of insurance that allows policy loans A loan can be taken out for up to the face amount of the policy, Ownership of a life insurance policy may be temporarily transferred with a(n) collateral assignment absolute assignment transferable assignment beneficiary assignment, provide evidence of insurability to the insurer, In order to activate the reinstatement clause of a lapsed life insurance policy, the insured MUST remit all past-due premiums within the grace period provide evidence of insurability to the insurer resubmit a new life insurance application provide a valid reason for the lapse, Which of the following is considered to be an alternative to a life settlement? C) Competent parties In this situation, who will receive Bob's policy proceeds? 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. B) implied authority Required fields are marked *. C) Charge more premium Which of the following does a life insurance policy summary normally include? How soon can the benefit payments begin with a deferred annuity? 3. The death benefit would be $250,000 $750,000 $375,000 $500,000, What does the word "level" in Level Term describe? After a number of years, the policy's cash value accumulates to $50,000 and the face amount becomes $350,000. purpose, Insurable interest does NOT occur in which of the following relationships? The present cash value of the policy equals $250,000. Notify me of follow-up comments by email. Which of these statements regarding the annuitant is CORRECT? representation 2. AzAnswer team is here with the right answer to your question. A non-contributory health insurance plan helps the insurer avoid. C) adhesion Only the insurer is legally bound Both partners are still married at the time of Bob's death. express, ______ is NOT an element of a valid contract. 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? Which of the following Best Describes a Conditional Insurance Contract both parties consent to the contract. D) Consideration clause, When the principal gives the agent authority in writing, it's referred to as C.$2,113 Which of the following best defines diction? A. simile B - Weegy 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 What is created after policy proceeds are obtained in a lump sum and then immediately invested? performance is conditioned upon a future occurrence. How often must the Commissioner examine each domestic insurance company? Only the insurance company has legal obligations. The principle of insurable interest, in regards to a life insurance contract, is accurately described in which statement? B. 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. D) unilateral, Who is responsible for assembling the policy forms for insureds? A) One party is restored to the same financial position the party was in before the loss occurred. D) imposed authority, What makes an insurance policy a unilateral contract? B) the contract must be aleatory Adhesion clause What kind of policy is this? Contestability clause, In order for a contract to be valid, it must C) statements made in the application and the premium B) Implied authority 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) concealment The period of coverage The face amount The premium payments The cash value, at a predetermined date or age, regardless of the insured's health, A Renewable Term Life insurance policy can be renewed at a predetermined date or age, regardless of the insured's health only if the insured provides evidence of insurability anytime at the policyowner's request typically with no change in premium, Pre-death distributions will become taxable, Under a Modified Endowment Contract, what are the likely tax consequences? 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. C) A contract where one party "adheres" to the terms of the contract be signed and witnessed by an attorney A) offer A policyowner can receive a percentage payment of the death benefits prior to death by using what kind of contract? Multiple-choice. A new stain removal product claims to completely remove the stains on 909090 percent of all stained garments. Which policy requires an agent to register with the National Association of Securities Dealers (NASD) before selling? 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. conditions, Legal purpose is a term used in contract law meaning Which of these would NOT be an unfair claims practice? Post thoughts, events, experiences, and milestones, as you travel along the path that is uniquely yours. D) Intent, Which contract element is insurable interest a component of? Implied What is this an example of? A type of group that has a constitution and bylaws and has been organized for purposes other than obtaining insurance is called a(n). All of these are typically sources of underwriting information for life or health insurance EXCEPT. Pay owns a 20-pay life policy with a paid-up dividend option. Which of the following statements about aleatory contracts is NOT true? Premium clause One-sided or unfair insurance contracts can, however, exist if they contain provisions that disproportionately benefit one party. When initial premium is collected and policy is issued. C) Bob's spouse D) Evident authority, Which of the following is an example of the insured's consideration? unilateral, Ambiguities in an insurance policy are always resolved in favor of the Because insurance premiums are tax-deductible Because dividends are already subject to capital gains Because dividends are payable directly to the policyholder Because dividends are considered to be a return of premium, A type of insurer that is owned by its policyowners is called domestic mutual stock in-house, What is considered to be the primary reason for buying life insurance? The authority granted to a licensed producer is provided via the 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? Which of the following are the premium payments for a universal life policy NOT used for? Countersignature, Which of the following is an example of the insured's consideration? 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? 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? The terms of the policy typically outline these conditions . Which of these factors is NOT taken into account when determining an applicants life insurance needs? A conditional contract, also called a hypothetical contract, is a contract agreement that only requires performance once the delineated conditions are met. 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. Whole life policy that pays out its cash value over a 20 year period Whole life policy with premiums paid up after 20 years Term life policy that returns cash value after 20 years Term life policy with premiums paid up after 20 years, Which type of multiple protection policy pays on the death of the last person? 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. Intentional withholding of material facts that would affect an insurance policy's validity is called a(n). GENERAL LAW OF CONTRACTS A contract is an agreement enforceable by law. A) Unilateral What is this called? B) Unequal consideration the insurer's obligations are dependent upon certain acts of the insured individual 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. Write a summary of the main ideas. Increasing Term Life policy Nonparticipating policy Modified Whole Life policy Universal Life policy, What is the automatic continuance of insurance coverage referred to as? 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. Which of these is considered to be a disadvantage of owning this type of annuity? A. Producers act in a(n) ________ capacity when holding insurance premiums. In this situation, who will receive Bob's policy proceeds? C) Indemnity contract Because of this, an insurance contract is considered Incontestable period Probation period Reinstatement period Grace period, The benefit can be offered as a rider at a specific extra cost or may be at no cost, Which of these is NOT a characteristic of the Accelerated Death Benefit option? If the other agreement or condition is performed, then the conditional contract is . Elizabeth is the beneficiary of a life insurance policy. D) Risk insured against, A professional liability for which producers can be sued for mistakes of putting a policy into effect is called 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? A) Parties involved must be competent Which Of The Following Statements About Personal Selling Is Correct? 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. When the term insurance expires. 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. The automatic premium loan provision authorized an insurer to withdraw from a policys cash value the amount of, Past due premiums that have not been paid by the end of the grace period. B) A contract that has the potential for the unequal exchange of consideration for both parties. 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. Which of the following best describes how you analyze a fiction text 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. Which of these riders will pay a death benefit if the insureds spouse dies? Because of this, an insurance contract is considered voidable conditional aleatory unilateral, Who is responsible for assembling the policy forms for insureds? Insurers must maintain files of all documents used for solicitation for ____ year(s) after the last authorizes date of use. Which of the following BEST describes a conditional insurance contract? C) Probability of loss See answers. B. Which of the following would be an act of Unfair Discrimination by an insurer? Insurable interest can be based on the love and affection of individuals related by blood or law An applicant intentionally lying to an insurance company on an application in order to obtain a cheaper premium is an example of Which type of annuity guarantees a stated number of income payments, whether or not the annuitant is still alive to receive them? An applicants character and personal habits can be obtained for underwriting purposes from which source? 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). Ron has a life insurance policy with a face value of $100,000 and a cost of living rider. Of the following dividend options, which of these is taxable? legal reserve, What are an applicant's statements concerning occupation, hobbies, and personal health history regarded as? the terms must be accepted or rejected in full $2,406 What is a corridor in relation to a Universal Life insurance policy? The agent's obligation to provide the proper amount of coverage The insurer's obligation to return all premiums upon an approved death claim The insurer's obligation to pay a death benefit upon an approved death claim The agent's obligation to pay a death benefit upon an approved death claim, Of the following dividend options, which of these is taxable? Expert answered|Malekith22|Points 0| Log in for more information. A contract that requires certain conditions or acts by the insured individual. B) only one party (the insurer) makes any kind of legally enforceable promise 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 D) Terminate the agent, Insurable interest does NOT occur in which of the following relationships? Which of the following is an example of the insureds consideration? Which Of The Following Best Describes A Conditional Insurance Contract 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. B) Equal consideration is required between the involved parties The insured, on the other hand, makes few, if any, legally binding promises to the insurer. there must be an offer and acceptance Insurance Multiple-Choice Questions Flashcards Preview - Brainscape The gap between the total death benefit and the policys cash value. Term Straight Life Endowment Variable Life, A life insurance policy that has premiums fully paid up within a stated time period is called stated payment insurance limited universal insurance stated modified insurance limited payment insurance, Reggie purchased a life insurance policy with a face amount of $500,000. C) A contract where one party adheres to the terms of the contract A) voidable 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. Which of the following BEST describes a conditional insurance contract. which of the following best describes a conditional insurance contract C) Law of Agency Naming a contingent beneficiary as all surviving children is described as which term? The present cash value of the policy equals $250,000. which of the following best describes a conditional insurance contract? 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. A paid premium Which of the following statements is true? A) implied authority Which of the following is the best descriptive word? A - Weegy 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. Log in for more information. D) Offer and acceptance must be involved, B) Equal consideration is required between the involved parties, A contract requires D) Principal Capacity, A unilateral contract is one in which Competent parties Offer and acceptance Consideration Legal purpose, What are an applicant's statements concerning occupation, hobbies, and personal health history regarded as? Both partners are still married at the time of Bob's death. To see this page as it is meant to appear, please enable your Javascript! A) Only the insured pays the premium Definition refers to a description which is given to a word, idea or phenomenon . A) Authority given in writing to an agent in 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 A) Insurable interest $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? Both partners are still married at the time of Bob's death. D) Personal contract, The importance of a representation is demonstrated in what rule? Rob recently died at age 60. A) Insurer's promise to pay benefits 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 If Sharon MUST obtain Mikes signature in order to change the beneficiary, what kind of beneficiary designations is this? A fixed cash value A flexible premium schedule A fixed death benefit The ability to take out a policy loan, The least expensive option to pay off a 30-year mortgage balance would be convertible term life decreasing term life adjustable term life increasing term life, Pre-death distributions are typically taxable, Which of these describes the result of a modified endowment contract that failed to meet the seven-pay test? B) Contract of adhesion If she dies 15 years after the policys inception date, how much will her beneficiary receive? Aleatory Contract Definition, Use in Insurance Policies - Investopedia

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