Policyowner may increase or decrease the premium payments Policyowner may increase or decrease the face amount Policyowner can contribute large sums of money Policyowner has the right to select the investment which will provide the greatest return, All of the following riders can increase the death benefit amount EXCEPT Cost of Living Waiver of Premium Accidental Death Rider Guaranteed Insurability, Which of these is NOT considered to be a common life insurance nonforfeiture option? 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. definitions Which of these riders will pay a death benefit if the insureds spouse dies? His insurance agent told him the policy would be paid up if he reached age 100. discreet apparent implied express, Bob and Tom start a business. Policy Application Riders Certificate of Authority, A life insurance rider that allows an individual to purchase insurance as they grow older, regardless of insurability, is called a(n) guaranteed term rider guaranteed insurability rider accelerated benefit rider cost of living rider, The suicide clause of a life insurance policy states that if an insured commits suicide within a stated period from the policy's inception, the insurer will only be liable for a return of premiums paid minus indebtedness and with interest during the last 12 months minus indebtedness and without interest during the last 6 months, A life insurance policyowner does NOT have the right to change a beneficiary select a beneficiary take out a policy loan revoke an absolute assignment, A life insurance policy normally contains a provision that restricts coverage in the event of death under all of the following situations EXCEPT fare-paying passenger pilot of personal airplane suicide war, The insurer's obligation to pay a death benefit upon an approved death claim, Under a life insurance policy, what does the insuring clause state? Expert answered|Malekith22|Points 0| Log in for more information. Log in for more information. Intent, The deeds and actions of a producer indicate what kind of authority? Expert answered| selymi |Points 23307|. Which of the following best describes a symbol. The death benefit would be $250,000 $750,000 $375,000 $500,000, What does the word "level" in Level Term describe? 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. Where would policy proceeds be paid if both the insured and primary beneficiary were killed in the same accident? 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 A) Sister and brother B. Corporations, like all firms, can raise money by borrowing from banks and other lending institutions. A policyowner can receive a percentage payment of the death benefits prior to death by using what kind of contract? C) apparent authority 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. 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? D) Business owner and business client, Under a contract of adhesion, D) Only the insured is legally bound, Bob and Tom start a business. Rob purchased a standard whole life policy with a $500,000 death benefit when we was age 30. 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. D) Competent parties, Which of the following BEST describes a conditional insurance contract? Which of the following is an annuity that is linked to a market-related index? 3. offer WINDOWPANE is the live-streaming app for sharing your life as it happens, without filters, editing, or anything fake. 2003-2023 Chegg Inc. All rights reserved. Which Of The Following Statements About Personal Selling Is Correct? Julie has a $100,000 30-year mortgage on her new home. Which of the following would be a valid reason why a policy premium would be higher than the standard premium? Aleatory Contract: A contract type in which the parties involved do not have to perform a particular action until a specific event occurs. 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. Typically, bilateral contracts involve an equal obligation or. 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? D) Insurance producers, If a material warranty violation on the part of the insured is found, what recourse does an insurer have? (C) Both parties exchange goods of equal value. Adjustable life policy Modified life policy Endowment policy Universal life policy, How are survivorship life insurance policies helpful in estate planning? An unintentional violation of Utah insurance law could lead a producer to a fine of up to _____ per violation. Which Of The Following Best Describes A Conditional Insurance Contract. In order to maintain coverage and make a successful claim, its crucial that policyholders read and understand their insurance contract carefully. If threats or force is used to affect an insurance transaction, the unfair trade practice of __________ has been committed. C) The insured and the insurer contribute equally to the contract. B) Only the insured can change the provisions Craig purchased a life insurance policy for enabling his heirs to pay estate taxes. Peril Hazard Loss factor Liability, Which of these techniques will remove the risk of losing money in the stock market by never purchasing stocks? Who is responsible for assembling the policy forms for insureds? Express It is not necessary for the parties to exchange unequal consideration in a conditional insurance contract. How does life insurance create an immediate estate? Updated 10/6/2017 9:10:03 AM. C) the contract has been prepared by one party (the insurance company) with no negotiation between the applicant and the insurer A contract that requires certain conditions or acts by the insured individual. D) purpose, Which principle is accurately described with the statement "Insureds are entitled to recover an amount NOT greater than the amount of their loss"? It is the means by which one or more parties bind themselves to certain promises. To see this page as it is meant to appear, please enable your Javascript! both parties consent to the contract. Dorian exercises a nonforfeiture option by using his life policys cash value to purchase an extended term insurance option. Answer Explanation: A contract that requires certain conditions or acts by the insured individual. What is the meaning of par value of stock with respect to the corporate form of organization? D) legal reserve, In an insurance contract, the element that shows each party is giving something of value is called The power given to an individual producer that is not specifically addressed in his/her contract is considered what type of authority? Which scenario would most life insurance policies exclude coverage for? Are you looking for the correct answer to the question Which of the following BEST describes a conditional insurance contract?? 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? legal reserve, What are an applicant's statements concerning occupation, hobbies, and personal health history regarded as? be signed and witnessed by an attorney What does the word level in Level Term describe? weegy. If xxx actually turns out to be 131313, what do you think of the claim? After 15 years, the cash value has accumulated to $100,000 and the policy's face amount has become $600,000. Which of the following does a producer NOT have a fiduciary responsibility to? Which of the following BEST describes a conditional insurance contract? The insured, on the other hand, makes few, if any, legally binding promises to the insurer. Term, whole, and universal life insurance. Which type of life insurance policy is this? Insurance Multiple-Choice Questions Flashcards Preview - Brainscape C) Materiality of concealment C) A contract where one party "adheres" to the terms of the contract. Key elements of Organizational Behavior - People, Structure ,Technology & External Environment | Organizational Behavior, Penology - Meaning, Types, Importance, Scope and Example | Sociology, Karmachari Sanchaya Kosh - | Employees Provident Fund Nepal, Perceptual Errors -Types of Perceptual Error | Fundamentals of Organizational Behaviour, Difference between Manufacturing and Service Operations | Operation Management. A bilateral contract is an agreement between two parties in which each side agrees to fulfill their side of the bargain. Definition refers to a description which is given to a word, idea or phenomenon . Flashcards - Connecticut Insurance Test 2021 - FreezingBlue 30 seconds. The insurers obligation to pay a death benefit upon an approved death claim. See answers. 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. B) Equal consideration is required between the involved parties Under the Fair Credit Reporting Act, what is the maximum penalty that may be imposed in Ken? Insurance Cram Ch. 6 Flashcards | Chegg.com Express Apparent Implied Conditional, The type of multiple protection coverage that pays on the death of the last person is called a(n) joint life policy survivorship life policy annuity joint policy dual life policy, A nonforfeiture option can be used to increase the death benefit, All of these are valid options for an Adjustable Life Policy EXCEPT The policy's premium can be increased or decreased The policy's death benefit can be increased or decreased A nonforfeiture option can be used to increase the death benefit The policy's protection period can be modified, A life insurance contract which accumulates cash values higher than the IRS will allow, A Modified Endowment Contract (MEC) is best described as A life insurance contract which accumulates cash values higher than the IRS will allow An annuity contract which was converted from a life insurance contract A modified life contract which enjoys all the tax advantages of whole life insurance A life insurance contract where all withdrawals prior to age 65 are subject to a 10% penalty, An interest-sensitive life insurance policyowner may be able to withdraw the policy's cash value interest free. Only the insurance company has legal obligations. A contract that requires certain conditions or acts by the insured individual Which of these is considered to be a Living Benefit option in a life insurance policy? express authority B) at the time of application _______ is the authority given to a producer to transact business on behalf of the insurer. B) Consideration B) Offer and acceptance Preferred risk policies with reduced premiums are issued by insurance companies because the insured has, Better than average mortality or morbidity experience. producer's apparent authority 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. Period of time after the initial premium is paid and before the policy is issued Period of time it takes for a policy's underwriting to complete Period of time after a policy is issued and before it is delivered to policyowner Period of time after the premium is due but the policy remains in force, Life insurance policies will normally pay for losses arising from commercial aviation war suicide hazardous jobs, A policyowner may exercise which of these dividend options that uses the dividend to pay all or part of the next premium due? Eventually, they retire and dissolve the business. Sharon is the policyowner of a $500,000 life insurance policy. they are "take it or leave it" contracts. His insurance agent told him the policy would be paid up if he reached age 100. $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? written contract Sorry, you have Javascript Disabled! aleatory Asked 10/6/2017 7:04:21 AM. Aleatory Contract Definition, Use in Insurance Policies - Investopedia Under a life insurance policy, what does the insuring clause state? 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? Rob recently died at age 60. D) Risk insured against, A professional liability for which producers can be sued for mistakes of putting a policy into effect is called (A) Both parties to the contract are bound to the terms. B) premium only C) claim forms An individual who removes the risk of losing money in the stock market by never purchasing stocks is said to be engaging in. Only the insured can change the provisions Notify me of follow-up comments by email. 2003-2023 Chegg Inc. All rights reserved. One-sided or unfair insurance contracts can, however, exist if they contain provisions that disproportionately benefit one party. A) Unilateral How often must an insurance producers license in Utah be renewed? In order to maintain coverage and make a successful claim, its crucial that policyholders read and understand their insurance contract carefully. 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. 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. C) Law of Agency 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? Sister and brother The insurer assuming the risk is called the mutual insurer reinsurer reciprocal insurer participating insurer, Karen is a producer who has obtained personal information about a client without having a legitimate reason to do so. B) the contract must be aleatory D) Tom, The deeds and actions of a producer indicate what kind of authority? An example of an unfair claims practice would be, Failing to effectuate prompt, fair, and fair equitable settlements of a claim. 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 Which Of The Following Best Describes A Conditional Insurance Contract Principal Capacity, All of the following are elements of an insurance policy EXCEPT What are an applicants statements concerning occupation, hobbies, and personal health history regarded as? implied insurer other insurance Bilateral Contract: Definition, How It Works, and Example - Investopedia The above question Which of the following BEST describes a conditional insurance contract?, Was part of Insurance MCQs & Answers. Completing all applications and collecting initial premiums. A) Unilateral 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". A) Legal Which of the following best describe the term definition The amount of his disability income payments for an on-the-job injury may be reduced by. 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? A.$1,656 __________. Only the insurer is legally bound Which type of annuity guarantees a stated number of income payments, whether or not the annuitant is still alive to receive them? If the consumer price index had gone up 4%, how much may Ron increase the face value of the policy? Producers act in a(n) ________ capacity when holding insurance premiums. Which of the following is a requirement to attain an Utah resident producer license? Insurance Quiz (MCQs) Archives - Management Notes A) Competent parties contain an offer and acceptance, In an insurance contract, the insurer is the only party legally obligated to perform. The terms and conditions of insurance contracts should be carefully reviewed by policyholders before signing. D) Legal Purpose, Which of the following is present when an applicant stands to lose value if the insured dies? Barbaras policy includes a rider which allows her to purchase additional insurance at specific dates or events without evidence of insurability. Connect the text to your own experiences. Which of the following BEST describes a conditional insurance contract? y=f(x)=10x5x+1535if0x3if3
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which of the following best describes a conditional insurance contract