D) Personal contract, The importance of a representation is demonstrated in what rule? C) Indemnity contract Authority given to handle claims and process payments 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 written contract If she dies 15 years after the policys inception date, how much will her beneficiary receive? B) A contract that has the potential for the unequal exchange of consideration for both parties implied Premium clause Shirley has a $500,000 10-year-non-renewable level term life policy. In which form of corporate financing is the investor also an owner? D) legal reserve, In an insurance contract, the element that shows each party is giving something of value is called Before using an assumed name in Utah, a producer MUST, Maria would like an annuity that provides a guaranteed accumulation or payout. How soon can the benefit payments begin with a deferred annuity? C) adhesion C) Materiality of concealment 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? A policyowner can receive a percentage payment of the death benefits prior to death by using what kind of contract? B) written contract AzAnswer team is here with the right answer to your question. conditions, Legal purpose is a term used in contract law meaning 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? C) Bob's spouse 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 option was chosen? C) Aleatory 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? Only the insured pays the premium 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? Aleatory Contract: A contract type in which the parties involved do not have to perform a particular action until a specific event occurs. How many days is a temporary producers license valid? Expert answered| selymi |Points 23307|. C) insurer Legal purpose Increasing Term Life policy Nonparticipating policy Modified Whole Life policy Universal Life policy, What is the automatic continuance of insurance coverage referred to as? D) misrepresentation, Which of the following is NOT required in the content of a policy? Which of the following is an example of the insureds consideration? A. 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? In the case of an insurance contract, the contracting parties are the claimant and the insurer. be signed and witnessed by an attorney Authority given in writing to an agent in the agency agreement b. benefits paid under workers compensation. Because of this, an insurance contract is considered 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? Dual Life insurance Joint Life insurance Last Survivor Life insurance Shared Life insurance, Index whole life insurance contains a securities component that acts as a(n) hedge against inflation premium stabilizer means to lowering taxes on earnings incentive to purchase more coverage, Which of the following are the premium payments for a Universal life policy NOT used for? Which military service exclusion clause would pay upon his death? Updated 10/6/2017 9:10:03 AM. The power given to an individual producer that is not specifically addressed in his/her contract is considered what type of authority? A paid premium 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)? The terms and conditions of insurance contracts should be carefully reviewed by policyholders before signing. consideration A) Parties involved must be competent When the principal gives the agent authority in writing, its referred to as, The terms must be accepted or rejected in full. Barbaras policy includes a rider which allows her to purchase additional insurance at specific dates or events without evidence of insurability. The policies continue in force with no change. producer Conditional, Under a contract of adhesion, 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 A contract where only one party makes any kind of enforceable contract, statements made in the application and the premium, In a life or health insurance contract, "consideration" would be the offer and acceptance premium only statements made in the application and the premium statements made in the application only, 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 underwriting issuance of the policy promises made legal reserve, All of the following are elements of an insurance policy EXCEPT definitions other insurance claim forms conditions, The term which describes the fact that both parties of a contract may NOT receive the same value is referred to as Apparent Estoppel Aleatory Unilateral, Which of the following is an example of the insured's consideration? 2 See answers be filed with the state One-sided or unfair insurance contracts can, however, exist if they contain provisions that disproportionately benefit one party. 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. 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. A unilateral contract is one in which only one party makes a legally binding guarantee. 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". 2003-2023 Chegg Inc. All rights reserved. Which market index is normally associated with an indexed annuitys rate of return? The insurers obligation to pay a death benefit upon an approved death claim. C) A contract where one party adheres to the terms of the contract 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. 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. C) Business partners In exchange, the policyowner pays premiums. D) Offer and acceptance must be involved, B) Equal consideration is required between the involved parties, A contract requires The policies continue in force with no change. D) Competent parties, Which of the following BEST describes a conditional insurance contract? C) Insurable interest Free Flashcards about Stack #2476860 - StudyStack A) definitions which of the following best describes a conditional insurance contract? producer's apparent authority legal reserve, What are an applicant's statements concerning occupation, hobbies, and personal health history regarded as? What would happen if a life insurance applicant is given a conditional receipt? Which of the following BEST describes a conditional insurance contract? 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? Only the insurer is legally bound B) Consideration A) express authority Which of the following BEST describes a conditional insurance contract? D) Terminate the agent, Insurable interest does NOT occur in which of the following relationships? c. income earned by Pat's spouse. discreet Offering payment of approved claims within 30 days after affirming liability. Authority given to an agent to act outside the scope of the agency agreement, 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, When the principal gives the agent authority in writing, it's referred to as offer An individual who has a hobby racing cars once a month. Flashcards - Connecticut Insurance Test 2021 - FreezingBlue Which of these statements is true? Which of these is considered to be a disadvantage of owning this type of annuity? Which type of annuity guarantees a stated number of income payments, whether or not the annuitant is still alive to receive them? 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. A) Insurable interest Can be converted to permanent coverage without evidence of insurability Coverage can be different for each child Premiums on this rider are not required until the limiting age is reached Increases the policy's overall cash value, Which type of policy combines the flexibility of a universal life policy with investment choices? 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 Which Of The Following Best Describes A Conditional Insurance Contract. D) conditions, The authority granted to a licensed producer is provided via the 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 Accelerated death benefit rider Waiver of premium rider Extended term option Decreasing term insurance. Multiple-choice. After being properly appointed by the insurer. Which of the following statements correctly describes a contract of indemnity? A life insurance policy that is subject to a contract interest rate is referred to as. B) Indemnity Which of the following statements is true? A) voidable Which of these features are held exclusively by variable universal life insurance? which of the following best describes a conditional insurance contract Which of the following does a producer NOT have a fiduciary responsibility to? $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? C) representation Express a. medical expenses covered under Pat's employer-sponsored group health insurance. 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? What is the difference between insurance condition and warranty? This rider is called a(n). Under the McCarran-Ferguson Act, what is the minimum penalty for this? Law of large numbers U.S. Census Average mortality incidents Experience of morbidity, Insurance represents the process of risk selection avoidance transference assumption, Doctors pooling their money to cover malpractice exposures, An example of risk sharing would be Adding more security to a high-risk building Choosing not to invest in the stock market Doctors pooling their money to cover malpractice exposures Buying an insurance policy to cover potential liabilities, All of the following are examples of pure risk EXCEPT Losing money at a casino Injured while playing football Falling at a casino and breaking a hip Jewelry stolen during a home robbery, the terms must be accepted or rejected in full, Under a contract of adhesion, there is the potential for an unequal exchange of value the insurer's obligations are dependent upon certain acts of the insured individual the terms must be accepted or rejected in full only one party makes any kind of enforceable promise, According to life insurance contract law, insurable interest exists when any business relationship exists at the time of application at the time of death only when determined by a judge, In an insurance contract, the insurer is the only party legally obligated to perform. A life insurance claim which involves a per capita distribution of policy proceeds would be payable to the. Which of these statements is true? The policies continue in force with no change. Barry offers Chris his mountain cabin for the weekend to secure his order for his insurance 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. Adjustable life policy Modified life policy Endowment policy Universal life policy, How are survivorship life insurance policies helpful in estate planning? Which of the following is true of the law of contracts? A) Legal A) Sue the insured 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). What are an applicants statements concerning occupation, hobbies, and personal health history regarded as? Which Of The Following Best Describes A Conditional Insurance Contract B) concealment A) A contract that requires certain conditions or acts by the insured individual 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. 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? Who is responsible for assembling the policy forms for insureds? C) Probability of loss Preferred risk policies with reduced premiums are issued by insurance companies because the insured has, Better than average mortality or morbidity experience. An example of an unfair claims settlement practice is, Turning down a claim without providing the basis of denial. contain an offer and acceptance, In an insurance contract, the insurer is the only party legally obligated to perform. Which of the following BEST describes a conditional insurance contract? apparent All of the following are examples of a Business Continuation Plan EXCEPT. Peril Hazard Loss factor Liability, Which of these techniques will remove the risk of losing money in the stock market by never purchasing stocks? What types of life insurance are normally used for key employee indemnification? Which contract element is insurable interest a component of? D) Only the insured is legally bound, Bob and Tom start a business. 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? In this situation, who will receive Bob's policy proceeds? implied authority What Benefit Does The Payor Clause On A Juvenile Life Policy Provide? A) Sister and brother An unintentional violation of Utah insurance law could lead a producer to a fine of up to _____ per violation. The coverage, conditions, and limitations in the master policy of a group contract can be found in which document? A) A contract that requires certain conditions or acts by the insured individual In this situation, who will receive Bob's policy proceeds? Chapter 3 Legal Concepts of the Insurance Contract - Quizlet
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