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. An individual who has a hobby racing cars once a month. What guarantees that the statements supplied by an insurance applicant are true? Zucchini is the best descriptive word. C) insurer 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. B) Period to which the coverage exists Death benefits Cash value Loading costs Separate account investments, Which policy feature makes a universal life policy different from a whole life policy? Connect with others, with spontaneous photos and videos, and random live-streaming. An applicants character and personal habits can be obtained for underwriting purposes from which source? 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". The terms and conditions of insurance contracts should be carefully reviewed by policyholders before signing. D) Business owner and business client, Under a contract of adhesion, B. be signed and witnessed by an attorney Conditional, Under a contract of adhesion, Accelerated death benefit An example of an unfair claims practice would be 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? d. a deductible stated in the policy's provision. 3. C) Apparent authority 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? D) underwriter, Reasonably necessary acts that an agent must perform for carrying out his/her expressly authorized duties are covered by an agent's The terms of the policy typically outline these conditions, which may include paying premiums on time and maintaining the insured property in good condition. If the insured dies at any time during the 5 years, his beneficiary will receive the policy's face value. Tom's spouse Bob's estate Bob's spouse Tom, Which contract element is insurable interest a component of? All of the following statements about Carl's coverage are correct. Business partners A) the appearance of authority an insurer gives to its agent The insured, on the other hand, makes few, if any, legally binding promises to the insurer. 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 non-contributory health insurance plan helps the insurer avoid. c. income earned by Pat's spouse. 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. D) Personal contract, The importance of a representation is demonstrated in what rule? 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? Adjustable life insurance Decreasing term insurance Increasing term insurance Modified life insurance, A spouse and child can be added to the primary insured's coverage as what kind of rider? Which of the following BEST describes a conditional insurance contract? The power given to an individual producer that is not specifically addressed in his/her contract is considered what type of authority? 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 An unintentional violation of Utah insurance law could lead a producer to a fine of up to _____ per violation. The policy may be paid up early by using accumulated cash values The policy may be paid up early by using policy dividends The policy's premiums will increase after 20 years The policy's cash values steadily decrease after 20 years, the policy would be payable, minus the premium amount, If an insured dies during the grace period with no premiums paid the policy would be payable, minus the premium amount the policy would be payable only after the beneficiary makes past due premium payment all past premiums will be refunded with interest the claim would be denied, In what part of an insurance policy are policy benefits found? What is this called? Ken is a producer who has obtained Consumer Informations Reports under false pretenses. B) written contract At what point may a producer sell insurance for an insurer? Increasing Term Life policy Nonparticipating policy Modified Whole Life policy Universal Life policy, What is the automatic continuance of insurance coverage referred to as? A) offer B) Parent and children 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? What Benefit Does The Payor Clause On A Juvenile Life Policy Provide? weegy. 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. C) Business partners C) Law of large numbers 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? Express Which of these is considered to be a disadvantage of owning this type of annuity? A (D) Only one party is legally bound to the contract. b. benefits paid under workers compensation. Because you're already amazing. C.$2,113 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? Which of the following is an annuity that is linked to a market-related index? If she dies 15 years after the policy's inception date, how much will her beneficiary receive? Interest on policy loans is tax deductible Premium payments are tax deductible Pre-death distributions will become taxable Cash value cannot be surrendered early, seeks temporary protection and lower premiums, Term insurance is appropriate for someone who seeks living benefits for themselves seeks a policy that builds cash value seeks temporary protection and lower premiums seeks permanent protection and higher premiums, Shirley has a $500,000 10-year non-renewable level term life policy. 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. A) A contract that requires certain conditions or acts by the insured individual A person who is a nonsmoker, of average weight, and in excellent health would most likely be in which risk classification? 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? If she dies 15 years after the policys inception date, how much will her beneficiary receive? Plot this function and determine if she is ready to attempt the Bluenose Marathon. promises made Parent and children 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 Eventually, they retire and dissolve the business. Vegetable B. After a number of years, the policy's cash value accumulates to $50,000 and the face amount becomes $350,000. Which of the following statements is true? D) Terminate the agent, Insurable interest does NOT occur in which of the following relationships? voidable C) the terms must be accepted or rejected in full Intentional withholding of material facts that would affect an insurance policy's validity is called a(n). She is receiving the death benefit in payments of $10,000 per month until the principal and interest has been paid out. B) the insurer's obligations are dependent upon certain acts of the insured individual Rob recently died at age 60. Principal Capacity, All of the following are elements of an insurance policy EXCEPT If thats the case, you dont have to worry anymore. See answers. Bob dies 12 months later. When handling premiums for an insured, an agent is acting in which capacity? It is not necessary for the parties to exchange unequal consideration in a conditional insurance contract. A) implied authority 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? Andy the annuitant dies before the annuity start date. Your email address will not be published. D) Competent parties, Which of the following BEST describes a conditional insurance contract? The policy may be paid up early by using policy dividends. A symbol is a mark, sign or word that indicates, signifies, or is understood as representing an idea, object, or relationship, best describes a symbol. Which of the following are the premium payments for a universal life policy NOT used for? 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. Completing all applications and collecting initial premiums. 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? be filed with the state 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? Policyowner has the right to select the investment which will provide the greatest return. Which of these would NOT be an unfair claims practice? B) Bob's estate A bilateral contract is an agreement between two parties in which each side agrees to fulfill their side of the bargain. Barry offers Chris his mountain cabin for the weekend to secure his order for his insurance business. Contestability clause, In order for a contract to be valid, it must After 15 years, the cash value has accumulated to $100,000 and the policy's face amount has become $600,000. All of these are typically sources of underwriting information for life or health insurance EXCEPT. Which type of life insurance policy is this? 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. The terms of the policy typically outline these conditions . 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? 2. Sharing commissions with a producer licensed in the same line of business. 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). Lisa has recently bought a fixed annuity. 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. 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? Science Study Guide Questions. Within how many days must a licensee notify the Commissioner of a change in address? express authority Countersignature, Which of the following is an example of the insured's consideration? 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) Competent parties 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. C) Bob's spouse imposed authority, In an insurance contract, the element that shows each party is giving something of value is called C) Charge more premium The policies continue in force with no change. Legal purpose insured Which of the following is NOT considered rebating? A) Parties involved must be competent 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? What is a corridor in relation to a Universal Life insurance policy? unilateral, Ambiguities in an insurance policy are always resolved in favor of the What does a life insurance policy guarantee to the stated beneficiary upon the death of the insured? A) Express D) errors and oversights, In an insurance contract, the insurer is the only party legally obligated to perform. Orissa purchases a 10-year level term life insurance policy that has a death benefit of $200,000. B) Offer and acceptance 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. What is this an example of? Please check below to know the answer. (C) Both parties exchange goods of equal value. Multiple-choice. A) warranty C) at the time of death apparent authority Which of these riders will pay a death benefit if the insureds spouse dies? Connect the text to your own experiences. 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. Anheuser-Busch InBev is trying to reduce its water usage. there is the potential for an unequal exchange of value consideration Which of these factors is NOT taken into account when determining an applicants life insurance needs? 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? B) only an offer 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. Authority given in writing to an agent in the agency agreement If xxx actually turns out to be 131313, what do you think of the claim? How soon can the benefit payments begin with a deferred annuity? Are you looking for the correct answer to the question Which of the following BEST describes a conditional insurance 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) Conditional, Which of the following is NOT a requirement of a contract? B) the contract must be aleatory This is also known as a non-negotiable insurance contract, or an automatic contract. B) Equal consideration is required between the involved parties 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". Intent, The deeds and actions of a producer indicate what kind of authority? 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. Preferred risk policies with reduced premiums are issued by insurance companies because the insured has, Better than average mortality or morbidity experience. Which of the following BEST describes a conditional insurance contract. B) producer Competent parties Offer and acceptance Consideration Legal purpose, What are an applicant's statements concerning occupation, hobbies, and personal health history regarded as? A life insurance policyowner does NOT have the right to, Fixed annuities provide each of the following EXCEPT. Which of the following policies does NOT build cash value? Nothing $100,000 $250,000 $500,000, Which type of life insurance is normally associated with a Payor Benefit rider? ______ is NOT an element of a valid contract. Corporations, like all firms, can raise money by borrowing from banks and other lending institutions. Restoring an insured to the same condition as before a loss is an example of the principle of. 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. 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. Rob recently died at age 60. B) guarantee C) Contract must have a legal purpose 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. conditions, Legal purpose is a term used in contract law meaning Which of these legislation Acts is designed to protect consumers with guidelines regarding credit reporting and distribution? A marathon is 42.2 kilometers. claim forms 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. Offering payment of approved claims within 30 days after affirming liability. What is created after policy proceeds are obtained in a lump sum and then immediately invested? His insurance agent told him the policy would be paid up if he reached age 100. Which of the following is the best descriptive word? An individual who removes the risk of losing money in the stock market by never purchasing stocks is said to be engaging in. A) Insurable interest Food C. Plant D. Zucchini. 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. definitions In order to maintain coverage and make a successful claim, its crucial that policyholders read and understand their insurance contract carefully. The amount of his disability income payments for an on-the-job injury may be reduced by. 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? A) Express authority What kind of policy is this? C) Law of Agency 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.