This legal agreement requires prior performance of another agreement or clause in order to be enforceable. What does the Group Life underwriting risk selection process help protect insurance companies from? When the principal gives the agent authority in writing, its referred to as, The terms must be accepted or rejected in full. A) there must be an offer and acceptance Because you're already amazing. Sharing commissions with a producer licensed in the same line of business. Pay owns a 20-pay life policy with a paid-up dividend option. Which dividend option would an insurer invest the policyowners money and add any interest earnings as the dividends accrue? 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? there must be legal reasons for entering into the contract A) State Insurance Departments D) Consideration clause, When the principal gives the agent authority in writing, it's referred to as Accelerated death benefit An example of an unfair claims practice would be C) apparent authority Because of this, an insurance contract is considered Eventually, they retire and dissolve the business. C) Business partners Accelerated death benefit rider Waiver of premium rider Extended term option Decreasing term insurance. A life insurance policyowner does NOT have the right to, Fixed annuities provide each of the following EXCEPT. B) the contract must be aleatory GENERAL LAW OF CONTRACTS A contract is an agreement enforceable by law. Lisa has recently bought a fixed annuity. A Modified Endowment Contract (MEC) is best described as, A life insurance contract which accumulated cash values higher than the IRS will allow, Doctors pooling their money to cover malpractice exposures, The free-look provision gives the policyowner, The right to return the policy for a full refund within a specified number of days. Which Of The Following Statements About Personal Selling Is Correct? Which course of action is the insurer entitled to when deliberate concealment is committed by the insured? Which of the following best describes a symbol. What is a corridor in relation to a Universal Life insurance policy? (C) Both parties exchange goods of equal value. 0 Answers/Comments. 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. Provide funds to help fund retirement Provide funds to help pay taxes Provide funds for funeral expenses Provide tax deductions for premium payments, lower than the typical whole life policy during the first few years and then higher than typical for the remainder, The premium for a Modified whole life policy is higher than the typical whole life policy during the first few years and then lower than typical for the remainder lower than the typical whole life policy during the first few years and then higher than typical for the remainder normally graded over a period of 20 years level for the first 5 years then decreases for the remainder of the policy, The type of policy which pays on the death of the last person is called joint life survivorship life dual life shared life, A life insurance policy that is subject to a contract interest rate is referred to as adjustable life group life term life universal life, a policy that is paid up after only one payment, A single premium cash value policy can be described as a policy that is paid up after only one payment a policy that only requires an annual payment a policy that is guaranteed issue a policy that covers two or more lives, A limited payment whole life policy provides protection for 20 years lifetime protection protection for more than one person discounted premiums, A policyowner may change two policy features on what type of life insurance? Connect the text to your own experiences. An individual who removes the risk of losing money in the stock market by never purchasing stocks is said to be engaging in. be signed and witnessed by an attorney What is the name of the provision which states that a copy of the application must be attached to the policy when issued? A) Unilateral contract representation fichoh. A) insured 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. D) Utmost good faith, What does the insurance term "indemnity" refer to? 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. When handling premiums for an insured, an agent is acting in which capacity? C) aleatory offer At what point may a producer sell insurance for an insurer? Premium clause Consideration clause Adhesion clause Contestability clause, When the principal gives the agent authority in writing, it's referred to as express authority implied authority apparent authority imposed authority, Ambiguities in an insurance policy are always resolved in favor of the insured producer insurer underwriter, ______ is NOT an element of a valid contract. Identify the type of financing (stock or bond) that best answers the question. 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? 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. Question. 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. Under the McCarran-Ferguson Act, what is the minimum penalty for this? How do insurers predict the increase of individual risks? 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? Which of these legislation Acts is designed to protect consumers with guidelines regarding credit reporting and distribution? 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 discreet The insured does not meet established underwriting requirements, The type of multiple protection coverage that pays on the death of the last person is called a(n). C) Insurable interest Death benefits Cash value Loading costs Separate account investments, Which policy feature makes a universal life policy different from a whole life policy? To see this page as it is meant to appear, please enable your Javascript! 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. A. Insurance contracts are unilateral contracts. 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. One-sided or unfair insurance contracts can, however, exist if they contain provisions that disproportionately benefit one party. 2003-2023 Chegg Inc. All rights reserved. Andy the annuitant dies before the annuity start date. Term insurance is appropriate for someone who, Seeks temporary protection and lower premiums. 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. Because of this, an insurance contract is considered voidable conditional aleatory unilateral, Who is responsible for assembling the policy forms for insureds? In this situation, who will receive Bob's policy proceeds? Which of the following statements is true? there must be an offer and acceptance A) Tom's spouse D) Insurance producers, If a material warranty violation on the part of the insured is found, what recourse does an insurer have? 1 pt. Consideration Which Of The Following Best Describes A Conditional Insurance Contract. It allows for a spouse to be added as a rider to a life insurance policy It allows for policy loans to be advanced to the insured in the event of unemployment It allows for cash advances to be paid against the death benefit if the insured becomes terminally ill It allows for a third party to purchase a life insurance policy at a discounted rate and immediately advance a portion of the death benefit, All of these are standard exclusions found in a life insurance policy EXCEPT hazardous occupations aviation disability war, Which dividend option would an insurer invest the policyowner's money and add any interest earnings as the dividends accrue? C) Legal purpose D) Terminate the agent, Insurable interest does NOT occur in which of the following relationships? If the insured dies at any time during the 5 years, his beneficiary will receive the policy's face value. Have a great time ahead. Both partners are still married at the time of Bob's death. A. D) legal reserve, In an insurance contract, the element that shows each party is giving something of value is called C) Aleatory weegy. C) Indemnity contract A) Authority given in writing to an agent in the agency agreement A.$1,656 One-sided or unfair insurance contracts can, however, exist if they contain provisions that disproportionately benefit one party. conditional 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". Rob recently died at age 60. Adjustable life policy Variable universal policy Universal policy Modified whole life policy, A securities license is required for a life insurance producer to sell modified life insurance Modified Endowment Contracts (MEC) variable life insurance universal life insurance, The shorter the payment period, the higher the premium, The statement which best describes the relationship between the premiums of a whole life policy and the premium payment period is The shorter the payment period, the lower the premium The longer the payment period, the higher the premium The shorter the payment period, the higher the premium The payment period has no affect on the premium payment, Policyowner has the right to select the investment which will provide the greatest return, Variable life insurance and Universal life insurance are very similar. A new stain removal product claims to completely remove the stains on 909090 percent of all stained garments. $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? If xxx actually turns out to be 131313, what do you think of the claim? A minimum of 12 months after date of purchase, Insurance premium is determined by each of the following factors EXCEPT. Under a life insurance policy, what does the insuring clause state? 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. What kind of policy is this? 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) Bob's spouse d) an agreement requires a definite offer and an indefinite acceptance. How often must an insurance producers license in Utah be renewed? Assume that the product will be tested on 202020 randomly selected stained garments, and let xxx denote the number of these garments from which the stains will be completely removed. A) estoppel 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. 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. unilateral, Ambiguities in an insurance policy are always resolved in favor of the The principle of insurable interest, in regards to a life insurance contract, is accurately described in which statement? d. a deductible stated in the policy's provision. For a trip to the hospital, Evan Appleton paid $1,656 in hospital charges, a$750 insurance deductible, and a $457 co-payment. D) unilateral, Who is responsible for assembling the policy forms for insureds? A) Insurability Which of the following best describe the term definition. they are "take it or leave it" contracts. 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? Sister and brother Express a) a conditional acceptance allows the parties to negotiate the definite terms of the contract upon the completion of the contract. If she dies 15 years after the policy's inception date, how much will her beneficiary receive? Which of these statements is true? The policies continue in force with no change. the terms must be accepted or rejected in full How soon can the benefit payments begin with a deferred annuity? Craig purchased a life insurance policy for enabling his heirs to pay estate taxes. aleatory 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.
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