Anheuser-Busch InBev is trying to reduce its water usage. Intent, The deeds and actions of a producer indicate what kind of authority? C) statements made in the application and the premium express authority Consideration She is receiving the death benefit in payments of $10,000 per month until the principal and interest has been paid out. written contract Because of this, an insurance contract is considered A) definitions 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. B) producer C) Contract must have a legal purpose Which of the following BEST describes a conditional insurance contract? Principal Capacity, All of the following are elements of an insurance policy EXCEPT D) Evident authority, Which of the following is an example of the insured's consideration? Which type of life insurance offers flexible premiums, a flexible death benefit, and the choice of how the cash value will be invested? How often must an insurance producers license in Utah be renewed? Naming a contingent beneficiary as all surviving children is described as which term? The coverage, conditions, and limitations in the master policy of a group contract can be found in which document? Which of the following statements about aleatory contracts is NOT true? Coverage decreases automatically Coverage increases automatically Coverage remains as long as proof of insurability is provided Coverage is eliminated, Joe has a life insurance policy that has a face amount of $300,000. the contract must be aleatory In this situation, who will receive Bob's policy proceeds? What guarantees that the statements supplied by an insurance applicant are true? D) Conditional, Which of the following is NOT a requirement of a contract? Which of the following would be an act of Unfair Discrimination by an insurer? An example of an unfair claims practice would be, Failing to effectuate prompt, fair, and fair equitable settlements of a claim. Business partners Chapter 3: Legal Concepts Flashcards | Quizlet Notify me of follow-up comments by email. 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. A) fiduciary bond In this situation, who will receive Bob's policy proceeds? 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 To see this page as it is meant to appear, please enable your Javascript! B) A contract that has the potential for the unequal exchange of consideration for both parties If she dies 15 years after the policy's inception date, how much will her beneficiary receive? Post thoughts, events, experiences, and milestones, as you travel along the path that is uniquely yours. D) the contract must be a contract of adhesion, C) there must be legal reasons for entering into the contract, Ambiguities in an insurance policy are always resolved in favor of 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. 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. The insured, on the other hand, makes few, if any, legally binding promises to the insurer. This legal agreement requires prior performance of another agreement or clause in order to be enforceable. Peril Hazard Loss factor Liability, Which of these techniques will remove the risk of losing money in the stock market by never purchasing stocks? 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. only one party makes any kind of enforceable promise, the terms must be accepted or rejected in full, 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". Advertisement. In order to maintain coverage and make a successful claim, its crucial that policyholders read and understand their insurance contract carefully. What would happen if a life insurance applicant is given a conditional receipt? Insurance producer Jerry offers a $350 shopping card if they purchase an insurance product through him. A) Parties involved in the contract D) Terminate the agent, Insurable interest does NOT occur in which of the following relationships? After a number of years, the policy's cash value accumulates to $50,000 and the face amount becomes $350,000. C) the contract has been prepared by one party (the insurance company) with no negotiation between the applicant and the insurer A policyowner is prohibited from making any changes to the policy without the beneficiarys written consent under which beneficiary designation? What was his total bill? If thats the case, you dont have to worry anymore. 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 C) Legal purpose C) apparent authority B) acceptance Which of the following would be a valid reason why a policy premium would be higher than the standard premium? 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. C) negotiation between the involved parties Under the Fair Credit Reporting Act, what is the maximum penalty that may be imposed in Ken? C) Law of Agency which of the following best describes a conditional insurance contract Insurance Multiple-Choice Questions Flashcards Preview - Brainscape 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? apparent authority Both partners are still married at the time of Bob's death. Which of the following is true of the law of contracts? 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. An insurer's claim settlement practices are regulated by the Securities and Exchange Commission (SEC) National Association of Claims Adjusters (NACA) National Association of Insurance Commissioners (NAIC) State insurance departments, A life insurance company has transferred some of its risk to another insurer. D) Utmost good faith, What does the insurance term "indemnity" refer to? 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 are conditions in an insurance policy? Which of these is considered to be a disadvantage of owning this type of annuity? 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. What is the difference between insurance condition and warranty? The principle of insurable interest, in regards to a life insurance contract, is accurately described in which statement? A) the appearance of authority an insurer gives to its agent Which of the following BEST describes a conditional insurance contract Which of the following is a reinstatement condition? imposed authority, In an insurance contract, the element that shows each party is giving something of value is called 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) producer's apparent authority The face amount and premium will remain constant over the 10-year period. (C) Both parties exchange goods of equal value. Intentional withholding of material facts that would affect an insurance policy's validity is called a(n). A new stain removal product claims to completely remove the stains on 909090 percent of all stained garments. A (D) Only one party is legally bound to the contract. Dorian exercises a nonforfeiture option by using his life policys cash value to purchase an extended term insurance option. 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. However, corporations also can raise money by selling bonds or issuing additional shares of stock. voidable 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? Flashcards - Ch. 15 - Disability Income - FreezingBlue Georgia Life Insurance Exam Ch. 2 questions & answers for quizzes and Which of the following does a producer NOT have a fiduciary responsibility to? 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)? Which of the following is a TRUE statement? Insurance interest does NOT occur in which of the following relationships? 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? This rider is called a(n). 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? 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. unilateral, Ambiguities in an insurance policy are always resolved in favor of the B) guarantee C) Indemnity contract 2003-2023 Chegg Inc. All rights reserved. The power given to an individual producer that is not specifically addressed in his/her contract is considered what type of authority? Who assumes the investment risk with a fixed annuity contract? Question and answer. In order for a contract to be valid, it must. 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). How do marketers use insights regarding the self-concept? Connect with others, with spontaneous photos and videos, and random live-streaming. 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. Only the insured pays the premium 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? 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? The terms of the policy typically outline these conditions, which may include paying premiums on time and maintaining the insured property in good condition. Which of the following is the best descriptive word? She would like to borrow $15,000 against the cash value. Which of the following statements correctly describes a contract of indemnity? Chapter3. Legal Concepts of the Insurance Contract Rob recently died at age 60. In most insurance policies, the insurer is the only one who makes a legally binding promise to pay insured claims. 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 products would allow him to accomplish this? _______ is the authority given to a producer to transact business on behalf of the insurer. Sorry, you have Javascript Disabled! A) estoppel What does the Group Life underwriting risk selection process help protect insurance companies from? a) a conditional acceptance allows the parties to negotiate the definite terms of the contract upon the completion of the contract. 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"? D) imposed authority, What makes an insurance policy a unilateral contract? d. a deductible stated in the policy's provision. If the other agreement or condition is performed, then the conditional contract is . A person who is a nonsmoker, of average weight, and in excellent health would most likely be in which risk classification? B) other insurance Julie has a $100,000 30-year mortgage on her new home. B) Rescind the policy Adjustable life Credit life Modified life Universal life, Whole life policy with premiums paid up after 20 years, Which of these would be the best example of a limited pay life insurance policy? Asked 10/6/2017 7:04:21 AM. Accumulation at Interest Option Cash Dividend Option Paid-Up Additions Option One-Year Term Dividend Option, The policy may be paid up early by using policy dividends, Pat owns a 20-pay life policy with a paid-up dividend option. How does life insurance create an immediate estate? B) Indemnity Which of the following best describes a conditional insurance contract An individual who removes the risk of losing money in the stock market by never purchasing stocks is said to be engaging in. Sharing commissions with a producer licensed in the same line of business. A) Insurability 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? Flashcards - Connecticut Insurance Test 2021 - FreezingBlue C) Probability of loss Which scenario would most life insurance policies exclude coverage for? Contestability clause, In order for a contract to be valid, it must What kind of policy is this? Rob recently died at age 60. After 15 years, the cash value has accumulated to $100,000 and the policy's face amount has become $600,000. Which statement is CORRECT when describing a contract of adhesion? underwriting The power given to an individual producer that is not specifically addressed in his/her contract is considered what type of authority? 2 See answers In most cases, the insured is. What is created after policy proceeds are obtained in a lump sum and then immediately invested? Authority given in writing to an agent in the agency agreement A) One party is restored to the same financial position the party was in before the loss occurred. fichoh. Where would policy proceeds be paid if both the insured and primary beneficiary were killed in the same accident? D) underwriter, Reasonably necessary acts that an agent must perform for carrying out his/her expressly authorized duties are covered by an agent's B) Offer and acceptance insured 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? Multiple-choice. Which of the following statements is true? The gap between the total death benefit and the policys cash value. All of the following are examples of a Business Continuation Plan EXCEPT. 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 claim forms Which of these statements regarding the annuitant is CORRECT? Rob purchased a standard whole life policy with a $500,000 death benefit when we was age 30. they are "take it or leave it" contracts. Which of the following are the premium payments for a universal life policy NOT used for? Craig purchased a life insurance policy for enabling his heirs to pay estate taxes. D) Business owner and business client, Under a contract of adhesion, 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? C) promises made It is the means by which one or more parties bind themselves to certain promises. 1 pt. A) express authority Your email address will not be published. C) insurer $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? 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. legal reserve, What are an applicant's statements concerning occupation, hobbies, and personal health history regarded as? Utah requires that an insurance producer must complete ___ hour(s) of continuing education on the subject of law and ethics every reporting period. Which of these factors is NOT taken into account when determining an applicants life insurance needs? A(n) ________ investigates, negotiates, and settles claims for a few on behalf of an insurance company. B) written contract B) the unwritten authority that the agent is assumed to have Elizabeth is the beneficiary of a life insurance policy. Premiums paid plus interest earned is returned to the beneficiary. Corporations, like all firms, can raise money by borrowing from banks and other lending institutions. C) Aleatory B) only an offer C) Implied In order to maintain coverage and make a successful claim, its crucial that policyholders read and understand their insurance contract carefully. conditional 30 seconds. Producers act in a(n) ________ capacity when holding insurance premiums. A) underwriting Because you're already amazing. 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? Which of the following best describe the term definition. Which of the following best describes how you analyze a fiction text? The above question Which of the following BEST describes a conditional insurance contract?, Was part of Insurance MCQs & Answers. d) an agreement requires a definite offer and an indefinite acceptance. C) Materiality of concealment AzAnswer team is here with the right answer to your question. Which of the following is the best descriptive word? A - Weegy B) implied authority A) Express authority The terms and conditions of insurance contracts should be carefully reviewed by policyholders before signing. Completing all applications and collecting initial premiums. All of the following statements about Carl's coverage are correct. The present cash value of the policy equals $250,000. Which of the following BEST describes a conditional insurance contract. Write a summary of the main ideas. 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. Which of the following BEST describes a conditional insurance contract? An insurance applicant with a below-average likelihood of loss is typically considered to be a. Administrative actions taken against a producer must be reported to the Commissioner within ____ days. Pay owns a 20-pay life policy with a paid-up dividend option. c. income earned by Pat's spouse. 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 Barbaras policy includes a rider which allows her to purchase additional insurance at specific dates or events without evidence of insurability. 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? C) the terms must be accepted or rejected in full 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 of the following best describes a conditional insurance contract? Nothing $100,000 $250,000 $500,000, Which type of life insurance is normally associated with a Payor Benefit rider? 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? Conditional Contracts: Everything You Need to Know - UpCounsel 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) insured 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. 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. It is a nonprofit organization that maintains underwriting information on applicants for life and health insurance.
Spring Valley Il Stabbing 2021, Casas De Venta En Kansas City, Ks 66106, Elizabeth Harrell Obituary, Articles W