insurer 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? Which of the following are the premium payments for a universal life policy NOT used for? The authority granted to a licensed producer is provided via the 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. Business owner and business client, The power given to an individual producer that is not specifically addressed in his/her contract is considered what type of authority? A conditional contract, also called a hypothetical contract, is a contract agreement that only requires performance once the delineated conditions are met. C) Authority given to handle claims and process payments C) the authority to represent the insurer The gap between the total death benefit and the policys cash value. C) adhesion Which type of multiple protection policy pays on the death of the last person? 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) apparent authority Which of these riders will pay a death benefit if the insureds spouse dies? Intent, The deeds and actions of a producer indicate what kind of authority? 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 insurers obligation to pay a death benefit upon an approved death claim. Completing all applications and collecting initial premiums. C) representation After a number of years, the policy's cash value accumulates to $50,000 and the face amount becomes $350,000. It is a government agency that collects medical information on the insured from the insurance companies C. It is a member organization that protects against insolvent insurers D. The gap between the total death benefit and the policy's cash value The gap between when a claim is filed and when the death benefit is received The amount of interest that has accumulated in the policy's cash value The point in time when the policy's cash value reaches $0, Rob purchased a standard whole life policy with a $500,000 death benefit when he was age 30. Competent parties Offer and acceptance Consideration Legal purpose, What are an applicant's statements concerning occupation, hobbies, and personal health history regarded as? Which of these statements regarding the annuitant is CORRECT? Which of the following statements is TRUE? Parent and children Which of the following BEST describes a conditional insurance contract? Barry offers Chris his mountain cabin for the weekend to secure his order for his insurance business. A) there is the potential for an unequal exchange of value 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? 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 The power given to an individual producer that is not specifically addressed in his/her contract is considered what type of authority? 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? In order to maintain coverage and make a successful claim, its crucial that policyholders read and understand their insurance contract carefully. both parties consent to the contract. implied authority GENERAL LAW OF CONTRACTS A contract is an agreement enforceable by law. 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. In most insurance policies, the insurer is the only one who makes a legally binding promise to pay insured claims. Events are those which cannot be controlled by either . D) Consideration, What are an applicant's statements concerning occupation, hobbies, and personal health history regarded as? Consideration How often must an insurance producers license in Utah be renewed? a. medical expenses covered under Pat's employer-sponsored group health insurance. The coverage, conditions, and limitations in the master policy of a group contract can be found in which document? C) consideration 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. 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. B) NAIC C) fiduciary trust 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? This is an example of: An example of unfair discrimination would be, When an insurer charges a higher rate for insurance based on an insureds race, religion, or national origin, Fixed period settlement options are considered to be a form of a(n). 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 (B) Both parties adhere to the contract. Apparent be in writing What is the difference between insurance condition and warranty? WINDOWPANE is the live-streaming app for sharing your life as it happens, without filters, editing, or anything fake. To see this page as it is meant to appear, please enable your Javascript! D) Tom, The deeds and actions of a producer indicate what kind of authority? Advertisement. Expert answered| selymi |Points 23307|. D) errors and oversights, In an insurance contract, the insurer is the only party legally obligated to perform. 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 B) issuance of the policy If threats or force is used to affect an insurance transaction, the unfair trade practice of __________ has been committed. C) negotiation between the involved parties 0 Answers/Comments. A) offer discreet apparent implied express, Bob and Tom start a business. A contract that requires certain conditions or acts by the insured individual. Which Of The Following Statements About Personal Selling Is Correct? 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". Bob dies 12 months later. Are you looking for the correct answer to the question Which of the following BEST describes a conditional insurance contract?? 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? Both partners are still married at the time of Bob's death. Bob dies 12 months later. Which Of The Following Best Describes A Conditional Insurance Contract. C) Only the insurer is legally bound 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? B) guarantee If the insured dies at any time during the 5 years, his beneficiary will receive the policy's face value. 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? 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? promises made if the insured lives beyond the 5 years, no benefits are payable. Definition refers to a description which is given to a word, idea or phenomenon . A) warranty weegy. It allows for cash advances to be paid against the death benefit if the insured becomes terminally ill. James is the insured on a life insurance policy where his age was misstated on the application. C) Apparent authority fichoh. Multiple-choice. 2003-2023 Chegg Inc. All rights reserved. Principal Capacity, All of the following are elements of an insurance policy EXCEPT The most appropriate description ascribed to the meaning of definition from the options given is ; A precise statement of the qualities of an idea, object or process. Under the Fair Credit Reporting Act, what is the maximum penalty that may be imposed in Ken? 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 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. 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? Which scenario would most life insurance policies exclude coverage for? A) voidable C) A contract where one party "adheres" to the terms of the contract 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". What is a corridor in relation to a Universal Life insurance policy? 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 of these statements is true? It is not necessary for the parties to exchange unequal consideration in a conditional insurance contract. Question. the contract is voidable upon proof of fraud. the contract must be aleatory Which of the following BEST describes a conditional insurance contract? What does the Group Life underwriting risk selection process help protect insurance companies from? The death benefit paid will be what the premium would have purchased at the correct age, Converting a group plan to permanent life insurance requires, The conversion being applied for within 31 days of termination. Connect the text to your own experiences. Provide death benefits Provide money for retirement Provide living benefits Provide money for college, The Do Not Call Registry offers exemptions for calls placed from all of the following EXCEPT charities political organizations insurance sales calls surveys, protect consumers with guidelines regarding credit reporting and distribution, The Fair Credit and Reporting Act's main purpose is to assist in the underwriting of insurance policies protect insurers from an applicant's misrepresentation protect consumers with guidelines regarding credit reporting and distribution assist an insurer in determining an applicant's creditworthiness, What kind of life insurance policy issued by a mutual insurer provides a return of divisible surplus? C) at the time of death 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. If the other agreement or condition is performed, then the conditional contract is . C) Law of Agency 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? B) Contract of adhesion When the term insurance expires. B) A contract that has the potential for the unequal exchange of consideration for both parties The type of annuity she is seeking is called. Lisa has recently bought a fixed annuity. Which of these factors is NOT taken into account when determining an applicants life insurance needs? Insurance contracts are unilateral contracts. 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? 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? In this situation, who will receive Bob's policy proceeds? Insurer's promise to pay benefits 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? If thats the case, you dont have to worry anymore. A) Make whole Under the Fair Credit Reporting Act, what is the maximum penalty that may be imposed on Ken? conditions, Legal purpose is a term used in contract law meaning The policies continue in force with no change. D) Competent parties, Which of the following BEST describes a conditional insurance contract? In this situation, who will receive Bob's policy proceeds? After first premium is paid, the face amount may be available to the beneficiary, Level premium term life insurance policies, Have premiums that are averaged over the policy period, A policyowner can receive an immediate payment before the insured dies by using a(n), Matt is applying for life insurance and requests a double indemnity rider. (C) Both parties exchange goods of equal value. 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? Which of the following BEST describes a conditional insurance contract? B) the insurer's obligations are dependent upon certain acts of the insured individual Which option was chosen? It is not necessary for the parties to exchange unequal consideration in a conditional insurance contract. Pay owns a 20-pay life policy with a paid-up dividend option. A) A contract that requires certain conditions or acts by the insured individual 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. His insurance agent told him the policy would be paid up if he reached age 100. 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. 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? Shirley has a $500,000 10-year-non-renewable level term life policy. d. a deductible stated in the policy's provision. How many days is a temporary producers license valid? What kind of policy is this? A) implied authority Which of these is considered to be a disadvantage of owning this type of annuity? Which of the following is a requirement to attain an Utah resident producer license? B) the contract must be aleatory Asked 10/6/2017 7:04:21 AM. A(n) ________ investigates, negotiates, and settles claims for a few on behalf of an insurance company. 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. 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? Connect with others, with spontaneous photos and videos, and random live-streaming. See answers. When handling premiums for an insured, an agent is acting in which capacity? 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. 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. Increasing Term Life policy Nonparticipating policy Modified Whole Life policy Universal Life policy, What is the automatic continuance of insurance coverage referred to as? 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) definitions be signed and witnessed by an attorney 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? Insurers must maintain files of all documents used for solicitation for ____ year(s) after the last authorizes date of use. A) Tom's spouse A life insurance policyowner does NOT have the right to, Fixed annuities provide each of the following EXCEPT. Sharing commissions with a producer licensed in the same line of business. Bob and Tom start a business. Which of the following is true of the law of contracts? 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.
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