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? there is the potential for an unequal exchange of value D) unilateral, Who is responsible for assembling the policy forms for insureds? Policyowner has the right to select the investment which will provide the greatest return. unilateral, Ambiguities in an insurance policy are always resolved in favor of the Expert answered| selymi |Points 23307|. A) insured A) A contract that requires certain conditions or acts by the insured individual A life insurance policy that is subject to a contract interest rate is referred to as. The present cash value of the policy equals $250,000. Insurance interest does NOT occur in which of the following relationships? Tom's spouse Bob's estate Bob's spouse Tom, Which contract element is insurable interest a component of? Barry offers Chris his mountain cabin for the weekend to secure his order for his insurance business. producer discreet apparent implied express, Bob and Tom start a business. Required fields are marked *. Which of the following BEST describes a conditional insurance contract? 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 Parent and children Which of the following is an example of the insureds consideration? imposed authority, In an insurance contract, the element that shows each party is giving something of value is called C) Charge more premium A unilateral contract is one in which only one party makes a legally binding guarantee. The authority granted to a licensed producer is provided via the they are "take it or leave it" contracts. 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. One-sided or unfair insurance contracts can, however, exist if they contain provisions that disproportionately benefit one party. Authority given in writing to an agent in the agency agreement 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. Which of the following would be an act of Unfair Discrimination by an insurer? 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 D) imposed authority, What makes an insurance policy a unilateral contract? The Fair Credit Reporting Acts main purpose is to, Protect consumers with guidelines regarding credit reporting and distribution, A whole life insurance policy accumulated cash value that becomes, The policy loan value which the insured may borrow against. One-sided or unfair insurance contracts can, however, exist if they contain provisions that disproportionately benefit one party. C) A contract where one party "adheres" to the terms of the contract. 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? Under a life insurance policy, what does the insuring clause state? B) issuance of the policy B) guarantee Bob dies 12 months later. Legal purpose Completing all applications and collecting initial premiums. Which type of annuity guarantees a stated number of income payments, whether or not the annuitant is still alive to receive them? Both partners are still married at the time of Bob's death. be filed with the state contain an offer and acceptance, In an insurance contract, the insurer is the only party legally obligated to perform. Loans obtained by a policyowner against the cash value of a life insurance policy. Insurance producer Jerry offers a $350 shopping card if they purchase an insurance product through him. A) Parties involved in the contract implied aleatory Use the binomial distribution to find P(x13)P(x \leq 13)P(x13) if the stain removal product's claim is correct. B) Law of adhesion A) One party is restored to the same financial position the party was in before the loss occurred. 30 seconds. She would like to borrow $15,000 against the cash value. c. income earned by Pat's spouse. Which of the following policies does NOT build cash value? Because of this, an insurance contract is considered voidable conditional aleatory unilateral, Who is responsible for assembling the policy forms for insureds? Which of the following BEST describes a conditional insurance contract? 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. However, corporations also can raise money by selling bonds or issuing additional shares of stock. issuance of the policy Her son, Mike, is the beneficiary. 2003-2023 Chegg Inc. All rights reserved. Insurer's promise to pay benefits Describe the structure. Which of the following BEST describes a conditional insurance contract? the contract is voidable upon proof of fraud. Principal Capacity, All of the following are elements of an insurance policy EXCEPT D) Insurance producers, If a material warranty violation on the part of the insured is found, what recourse does an insurer have? At what point may a producer sell insurance for an insurer? 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 The death benefit would be $250,000 $750,000 $375,000 $500,000, What does the word "level" in Level Term describe? Eventually, they retire and dissolve the business. D) Countersignature, 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 Which scenario would most life insurance policies exclude coverage for? 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) there is the potential for an unequal exchange of value Competent parties Offer and acceptance Consideration Legal purpose, What are an applicant's statements concerning occupation, hobbies, and personal health history regarded as? A) warranty 0 Answers/Comments. A contract that requires certain conditions or acts by the insured individual. B) Apparent Legal Consideration Competent parties Countersignature, A contract that requires certain conditions or acts by the insured individual, Which of the following BEST describes a conditional insurance contract? Producers act in a(n) ________ capacity when holding insurance premiums. D) Tom, The deeds and actions of a producer indicate what kind of authority? B) premium only A) Only the insured pays the premium A) definitions A) Express Under the Fair Credit Reporting Act, what is the maximum penalty that may be imposed in Ken? Question and answer. 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? the insurer's obligations are dependent upon certain acts of the insured individual Which of the following BEST describes a conditional insurance contract? A policyowner is prohibited from making any changes to the policy without the beneficiarys written consent under which beneficiary designation? 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. A) Express authority Which statement is CORRECT when describing a contract of adhesion? WINDOWPANE is the live-streaming app for sharing your life as it happens, without filters, editing, or anything fake. B) other insurance 2. producer's apparent authority If she dies 15 years after the policy's inception date, how much will her beneficiary receive? A) Tom's spouse Food C. Plant D. Zucchini. 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? Which of the following is NOT considered rebating? (C) Both parties exchange goods of equal value. Which Of The Following Best Describes A Conditional Insurance Contract, 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. How do marketers use insights regarding the self-concept? written contract An insurer exaggerating its dividends in a magazine advertisement. B) Indemnity 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 of the following best describes how you analyze a fiction text? 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. C) The insured and the insurer contribute equally to the contract. there must be legal reasons for entering into the contract c) a contract must be in writing. Legal A) Unilateral This is also known as a non-negotiable insurance contract, or an automatic contract. A) Insurable interest What is this called? 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. 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? In which form of corporate financing is the investor also an owner? Reduction of premium dividend option Extended term option Paid-up option Cash dividend option, Net death benefit will be reduced if the loan is not repaid, Joanne has a $100,000 whole life policy with an accumulated $25,000 of cash value. After 15 years, the cash value has accumulated to $100,000 and the policy's face amount has become $600,000. The terms of the policy typically outline these conditions, which may include paying premiums on time and maintaining the insured property in good condition. D) Principal Capacity, A unilateral contract is one in which When handling premiums for an insured, an agent is acting in which capacity? Because of this, an insurance contract is considered 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. 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. C) Law of large numbers Ken is a producer who has obtained Consumer Informations Reports under false pretenses. legal reserve, What are an applicant's statements concerning occupation, hobbies, and personal health history regarded as? 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? 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). Which of the following BEST describes a conditional insurance contract? What is the difference between insurance condition and warranty? A) Competent parties Which of the following best describes a symbol. Which of the following statements is TRUE? A non-contributory health insurance plan helps the insurer avoid. definitions b) a contract is an agreement enforceable at law. 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? Sharing commissions with a producer licensed in the same line of business. A) there must be an offer and acceptance Premiums paid plus interest earned is returned to the beneficiary. The gap between the total death benefit and the policys cash value. The terms of the policy typically outline these conditions . Updated 10/6/2017 9:10:03 AM. 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. ______ is NOT an element of a valid contract. Which of these features are held exclusively by variable universal life insurance? A new stain removal product claims to completely remove the stains on 909090 percent of all stained garments. apparent warranty It is not necessary for the parties to exchange unequal consideration in a conditional insurance contract. Which course of action is the insurer entitled to when deliberate concealment is committed by the insured? Juvenile insurance Family income insurance Spouse insurance Term rider, A life insurance policy written on one contract for two people in which it is payable upon the first death is called Split Shared Joint Survivorship, Level premium permanent insurance accumulates a reserve that will eventually equal the face amount of the policy pay a dividend to the policyowner require the policyowner to make periodic withdrawals become larger than the face amount, A permanent life insurance policy where the policyowner pays premiums for a specified number of years is called a(n) adjustable policy limited pay policy level term policy variable universal policy, term, whole, and universal life insurance, What types of life insurance are normally used for key employee indemnification? 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. Corporations, like all firms, can raise money by borrowing from banks and other lending institutions. Authority given to handle claims and process payments A) producer's apparent authority Which of these riders will pay a death benefit if the insureds spouse dies? D) Conditional, Which of the following is NOT a requirement of a contract? C) Legal purpose What kind of policy is this? Only the insurer is legally bound 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. 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) B) the insurer's obligations are dependent upon certain acts of the insured individual An insurance applicant with a below-average likelihood of loss is typically considered to be a. 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? How could a company manager use a process cost summary to determine if the program to reduce water usage is successful? 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 Of the following dividend options, which of these is taxable? Bob dies 12 months later. A) Make whole GENERAL LAW OF CONTRACTS A contract is an agreement enforceable by law. The policy may be paid up early by using policy dividends. The power given to an individual producer that is not specifically addressed in his/her contract is considered what type of authority? Cash surrender Extended term insurance Reduced paid-up insurance Life income annuity, Which type of rider will waive the premium on a child's life insurance policy if the parent paying the premium dies? If she dies 15 years after the policys inception date, how much will her beneficiary receive? What kind of policy is this? Which of these factors is NOT taken into account when determining an applicants life insurance needs? Connect with others, with spontaneous photos and videos, and random live-streaming. Where would policy proceeds be paid if both the insured and primary beneficiary were killed in the same accident? All of the following are examples of pure risk EXCEPT. C) Aleatory In most cases, the insured is. 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? Who prosecutes crimes that involve the violation of insurance laws that fall under US Code 1033? Identify the type of financing (stock or bond) that best answers the question. Events are those which cannot be controlled by either . Which of the following is a reinstatement condition? B) Offer and acceptance 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 A) Insurability Which of these statements regarding the annuitant is CORRECT? What is this an example of? This legal agreement requires prior performance of another agreement or clause in order to be enforceable. What guarantees that the statements supplied by an insurance applicant are true? If the insured dies at any time during the 5 years, his beneficiary will receive the policy's face value. A) offer ______ is NOT an element of a valid contract. C) negotiation between the involved parties A marathon is 42.2 kilometers. Risk reduction Risk transference Risk avoidance Risk retention, The cause of a loss is referred to as a(n) hazard adversity peril risk, How do insurers predict the increase of individual risks? 1 pt. A (D) Only one party is legally bound to the contract. C) apparent authority Elizabeth is the beneficiary of a life insurance policy. 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 The policies continue in force with no change. the contract must be aleatory Adhesion clause Your email address will not be published. Risk Hazard Indemnity Peril, Insurance companies determine risk exposure by which of the following? A) A contract that requires certain conditions or acts by the insured individual. 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. Sharon is the policyowner of a $500,000 life insurance policy. (D) Only one party is legally bound to the contract. Zucchini is the best descriptive word. B) Contract of adhesion 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 person who is a nonsmoker, of average weight, and in excellent health would most likely be in which risk classification? A) implied 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. B) written contract B) Implied authority C) consideration What would happen if a life insurance applicant is given a conditional receipt? B) Unequal consideration The above question Which of the following BEST describes a conditional insurance contract?, Was part of Insurance MCQs & Answers. B) only one party (the insurer) makes any kind of legally enforceable promise Under the Fair Credit Reporting Act, what is the maximum penalty that may be imposed on Ken? Increasing Term Life policy Nonparticipating policy Modified Whole Life policy Universal Life policy, What is the automatic continuance of insurance coverage referred to as? 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. Competent parties C) statements made in the application and the premium Contestability clause, In order for a contract to be valid, it must 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? both parties consent to the contract. B) at the time of application 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. C) insurer collateral, What is implied authority defined as? C) Bob's spouse Plot this function and determine if she is ready to attempt the Bluenose Marathon. Which of these is considered to be a Living Benefit option in a life insurance policy? How do insurers predict the increase of individual risks? All of the following statements about Carl's coverage are correct. To see this page as it is meant to appear, please enable your Javascript! An individual who removes the risk of losing money in the stock market by never purchasing stocks is said to be engaging in. 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. Because you're already amazing. Which of the following would be considered an underwriting duty of an agent? Expert answered|Malekith22|Points 0| Log in for more information. The present cash value of the policy equals $250,000. An applicants character and personal habits can be obtained for underwriting purposes from which source?
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