Under a life insurance policy, what does the insuring clause state? Naming a contingent beneficiary as all surviving children is described as which term? 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 features are held exclusively by variable universal life insurance? 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. Lisa has recently bought a fixed annuity. A) Authority given in writing to an agent in the agency agreement What kind of policy is this? D) Evident authority, Which of the following is an example of the insured's consideration? A) Insurer's promise to pay benefits If thats the case, you dont have to worry anymore. Under the McCarran-Ferguson Act, what is the minimum penalty for this? Term, whole, and universal life insurance. Which of the following describes a person who is NOT acceptable by an insurer at standard rates because of health history, occupation, or hobbies? Who assumes the investment risk with a fixed annuity contract? Under the Fair Credit Reporting Act, what is the maximum penalty that may be imposed on Ken? Sharing commissions with a producer licensed in the same line of business. A) there must be an offer and acceptance C) at the time of death Which market index is normally associated with an indexed annuitys rate of return? 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. 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. which of the following best describes a conditional insurance contract? A) there is an element of chance and potential for unequal exchange of value or consideration for both parties 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? 30 seconds. Only the insured is legally bound, 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 there must be an offer and acceptance B) Law of adhesion 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. Which scenario would most life insurance policies exclude coverage for? Question. 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". C) Probability of loss In exchange, the policyowner pays premiums. aleatory The policies continue in force with no change. Intent, The deeds and actions of a producer indicate what kind of authority? Where would policy proceeds be paid if both the insured and primary beneficiary were killed in the same accident? The policy may be paid up early by using policy dividends. A policyowner is prohibited from making any changes to the policy without the beneficiarys written consent under which beneficiary designation? A) State Insurance Departments A) offer 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? b) a contract is an agreement enforceable at law. The gap between the total death benefit and the policys cash value. Which type of multiple protection policy pays on the death of the last person? In order for a contract to be valid, it must. 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. Which type of annuity guarantees a stated number of income payments, whether or not the annuitant is still alive to receive them? B) errors and omissions Legal Consideration Competent parties Countersignature, A contract that requires certain conditions or acts by the insured individual, Which of the following BEST describes a conditional insurance contract? B) Implied authority In most insurance policies, the insurer is the only one who makes a legally binding promise to pay insured claims. In this situation, who will receive Bob's policy proceeds? A) underwriting D) both the policyowner and the insurer must know all material facts and relevant information, B) only one party (the insurer) makes any kind of legally enforceable promise, Intentional withholding of material facts that would affect an insurance policy's validity is called a(n) Which course of action is the insurer entitled to when deliberate concealment is committed by the insured? Which of the following best describes the MIB? Are you looking for the correct answer to the question Which of the following BEST describes a conditional insurance contract?? D) Offer and acceptance must be involved, B) Equal consideration is required between the involved parties, A contract requires A contract that requires certain conditions or acts by the insured individual. insurer Apparent there must be legal reasons for entering into the contract Term insurance is appropriate for someone who, Seeks temporary protection and lower premiums. One-sided or unfair insurance contracts can, however, exist if they contain provisions that disproportionately benefit one party. C) Law of large numbers This rider is called a(n). 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? C) Bob's spouse An unintentional violation of Utah insurance law could lead a producer to a fine of up to _____ per violation. a. medical expenses covered under Pat's employer-sponsored group health insurance. In most cases, the insured is. Which type of life insurance offers flexible premiums, a flexible death benefit, and the choice of how the cash value will be invested? 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. 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. they are "take it or leave it" contracts. legal reserve, What are an applicant's statements concerning occupation, hobbies, and personal health history regarded as? Karen is a producer who has obtained personal information about a client without having a legitimate reason to do so. producer's apparent authority Sister and brother Producers act in a(n) ________ capacity when holding insurance premiums. AzAnswer team is here with the right answer to your question. Provide an opinion. Who prosecutes crimes that involve the violation of insurance laws that fall under US Code 1033? D) Only the insured is legally bound, Bob and Tom start a business. Question and answer. Barbaras policy includes a rider which allows her to purchase additional insurance at specific dates or events without evidence of insurability. 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. 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 A) Competent parties 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? A) Express authority D) legal reserve, In an insurance contract, the element that shows each party is giving something of value is called When the term insurance expires. b. benefits paid under workers compensation. Which of these is considered to be a disadvantage of owning this type of annuity? Insurance producer Jerry offers a $350 shopping card if they purchase an insurance product through him. the contract must be a contract of adhesion, there must be legal reasons for entering into the contract, What makes an insurance policy a unilateral contract? The face amount and premium will remain constant over the 10-year period. Rob recently died at age 60. C) The insured and the insurer contribute equally to the contract. C) apparent authority C) adhesion Which Of The Following Best Describes A Conditional Insurance Contract. 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? An example of an unfair claims practice would be, Failing to effectuate prompt, fair, and fair equitable settlements of a claim. 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. Which of the following is NOT considered rebating? Because of this, an insurance contract is considered Bob dies 12 months later. Which of the following BEST describes a conditional insurance contract? D) collateral, Express power given to an agent in an agency agreement is See answers. All of the following statements about Carl's coverage are correct. 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. D) Insurance producers, If a material warranty violation on the part of the insured is found, what recourse does an insurer have? Preferred risk policies with reduced premiums are issued by insurance companies because the insured has, Better than average mortality or morbidity experience. Eventually, they retire and dissolve the business. A) Insurable interest A) One party is restored to the same financial position the party was in before the loss occurred B) The unequal exchange of value or consideration for both parties C) One party (the insurance company) prepares the contract with no negotiation between the applicant and insurer D) Only one party (the insurer) makes any kind of enforceable promise What Benefit Does The Payor Clause On A Juvenile Life Policy Provide? After being properly appointed by the insurer. Authority given in writing to an agent in 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 Authority given to handle claims and process payments Authority given to an agent to act outside the scope of the agency agreement, The authority granted to a licensed producer is provided via the producer's apparent authority written contract Law of Agency Principal Capacity, Insurable interest does NOT occur in which of the following relationships? Use the binomial distribution to find P(x13)P(x \leq 13)P(x13) if the stain removal product's claim is correct. What is the advantage of adding this rider? D) Conditional, Which of the following is NOT a requirement of a contract? Group policy Adjustable life policy Whole life policy Endowment policy, A renewable Term Life insurance policy allows the policyowner the right to renew the policy at anytime the policyowner chooses as many times as the policyowner chooses paying the same premium as before the renewal without producing proof of insurability, When a decreasing term policy is purchased, it contains a decreasing death benefit and increasing premiums level premiums decreasing premiums variable premiums, Julie has a $100,000 30-year mortgage on her new home. In order to maintain coverage and make a successful claim, its crucial that policyholders read and understand their insurance contract carefully. Ron has a life insurance policy with a face value of $100,000 and a cost of living rider. discreet Administrative actions taken against a producer must be reported to the Commissioner within ____ days. 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 insurers obligation to pay a death benefit upon an approved death claim. there is the potential for an unequal exchange of value C) promises made B) the insurer's obligations are dependent upon certain acts of the insured individual B) implied authority (D) Only one party is legally bound to the contract. What does the word level in Level Term describe? A. Shirley has a $500,000 10-year-non-renewable level term life policy. Which of the following statements is true? The death benefit would be. 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 B) A contract that has the potential for the unequal exchange of consideration for both parties. 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. Bob dies 12 months later. definitions 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 For a trip to the hospital, Evan Appleton paid $1,656 in hospital charges, a$750 insurance deductible, and a $457 co-payment. Premiums paid plus interest earned is returned to the beneficiary. B) guarantee claim forms warranty guarantee representation collateral, there must be legal reasons for entering into the contract, Legal purpose is a term used in contract law meaning there must be an offer and acceptance the contract must be aleatory there must be legal reasons for entering into the contract the contract must be a contract of adhesion, In an insurance contract, the element that shows each party is giving something of value is called offer acceptance consideration purpose, What makes an insurance policy a unilateral contract? the contract must be aleatory Risk Hazard Indemnity Peril, Insurance companies determine risk exposure by which of the following? Which statement is CORRECT when describing a contract of adhesion? offer An example of an unfair claims settlement practice is, Turning down a claim without providing the basis of denial. D) Countersignature, 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 B) conditional 2003-2023 Chegg Inc. All rights reserved. underwriter, Life Insurance Policies - Provisions, Options, Fundamentals of Financial Management, Concise Edition, Micro Oneliners: Urinary Tract Infections (UT. Which of the following BEST describes a conditional insurance contract? 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? A) Insurability When initial premium is collected and policy is issued. Both partners are still married at the time of Bob's death. insured Legal In this situation, who will receive Bob's policy proceeds? How often must an insurance producers license in Utah be renewed? Which settlement option pays a stated amount to an annuitant, but no residual value to a beneficiary? C) fiduciary trust 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 power given to an individual producer that is not specifically addressed in his/her contract is considered what type of authority? C) aleatory implied One-sided or unfair insurance contracts can, however, exist if they contain provisions that disproportionately benefit one party. C) insurer 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. _______ is the authority given to a producer to transact business on behalf of the insurer. How do marketers use insights regarding the self-concept? (B) Both parties adhere to the contract. $1,000 $3,000 $5,000 $7,000, A nonparticipating company is sometimes called a(n) alien insurer mutual insurer reinsurer stock insurer, Because dividends are considered to be a return of premium, Why are dividends from a mutual insurer not subject to taxation? A) offer and acceptance 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 Restoring an insured to the same condition as before a loss is an example of the principle of. express authority 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. fichoh. D) Competent parties, Which of the following BEST describes a conditional insurance contract? C) statements made in the application and the premium 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? Because of this, an insurance contract is considered voidable conditional aleatory unilateral, Who is responsible for assembling the policy forms for insureds? 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? Modified Endowment Contract Current assumptive whole life Credit life insurance Equity index whole life, What kind of life insurance policy covers two or more people with the death benefit payable upon the last person's death? However, corporations also can raise money by selling bonds or issuing additional shares of stock. Which of the following BEST describes a conditional insurance contract?
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