B) Consideration Multiple-choice. In this situation, who will receive Bob's policy proceeds? 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). A paid premium Definition refers to a description which is given to a word, idea or phenomenon . Under the Fair Credit Reporting Act, what is the maximum penalty that may be imposed in Ken? Term, whole, and universal life insurance. 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 D) Conditional, Which of the following is NOT a requirement of a contract? A rating from a rating service company, such as A.M. Best An illustration A sales presentation Direct mailing from an agency, Fraternal Benefit Society has each of the following characteristics EXCEPT Incorporated Without capital stock Exist For profit Exist for the benefit of its members, A plan in which an employer pays insurance benefits from a fund derived from the employer's current revenues is called A self-derived plan A multiple-employer plan A blanket plan A self-funded plan, An insurer's ability to make unpredictable payouts to policyowners is called investment values liquidity assets capital, Ken is a producer who has obtained Consumer Information Reports under false pretenses. Competent parties Offer and acceptance Consideration Legal purpose, What are an applicant's statements concerning occupation, hobbies, and personal health history regarded as? definitions Nothing $100,000 $250,000 $500,000, Which type of life insurance is normally associated with a Payor Benefit rider? Which of these statements is true? 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. Term insurance is appropriate for someone who, Seeks temporary protection and lower premiums. A life insurance policy that is subject to a contract interest rate is referred to as. A) Insurable interest B) Apparent 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 (D) Only one party is legally bound to the contract. D) Consideration, What are an applicant's statements concerning occupation, hobbies, and personal health history regarded as? Her son, Mike, is the beneficiary. Insurance interest does NOT occur in which of the following relationships? A) there is an element of chance and potential for unequal exchange of value or consideration for both parties Because you're already amazing. After 15 years, the cash value has accumulated to $100,000 and the policy's face amount has become $600,000. the contract is voidable upon proof of fraud. Which of the following is the best descriptive word? AzAnswer team is here with the right answer to your question. 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? 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 Which of the following describes a person who is NOT acceptable by an insurer at standard rates because of health history, occupation, or hobbies? A contract that requires certain conditions or acts by the insured individual. In exchange, the policyowner pays premiums. C) A contract where one party "adheres" to the terms of the contract. 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 Which contract element is insurable interest a component of? D) A contract where only one party makes any kind of enforceable contract, Answer:A) A contract that requires certain conditions or acts by the insured individual. Which of these factors is NOT taken into account when determining an applicants life insurance needs? Which of these is considered to be a disadvantage of owning this type of annuity? Identify the type of financing (stock or bond) that best answers the question. 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) 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. The terms of the policy typically outline these conditions, which may include paying premiums on time and maintaining the insured property in good condition. Who prosecutes crimes that involve the violation of insurance laws that fall under US Code 1033? His insurance agent told him the policy would be paid up if he reached age 100. 2. WINDOWPANE is the live-streaming app for sharing your life as it happens, without filters, editing, or anything fake. (A) Both parties to the contract are bound to the terms. Which of the following would be considered an underwriting duty of an agent? Offering payment of approved claims within 30 days after affirming liability. Barry offers Chris his mountain cabin for the weekend to secure his order for his insurance business. Insurer's promise to pay benefits Implied 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. How often must the Commissioner examine each domestic insurance company? B) at the time of application A) Make whole 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 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. 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. A contract that requires certain conditions or acts by the insured individual A contract that has the potential for the unequal exchange of consideration for both parties A contract where one party "adheres" to the terms of the contract collateral, What is implied authority defined as? B) Unequal consideration Both partners are still married at the time of Bob's death. aleatory written contract Risk Hazard Indemnity Peril, Insurance companies determine risk exposure by which of the following? A) One party is restored to the same financial position the party was in before the loss occurred. Which of these would NOT be an unfair claims practice? 0 Answers/Comments. Authority given in writing to an agent in the agency agreement Expert answered|Malekith22|Points 0| Log in for more information. 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? 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. Intent, The deeds and actions of a producer indicate what kind of authority? This is called risk retention preexisting conditions law of large numbers adverse selection, What is known as the immediate specific event causing loss and giving rise to risk? What kind of policy is this? D) legal reserve, In an insurance contract, the element that shows each party is giving something of value is called C) The insured and the insurer contribute equally to the contract. Utah requires that an insurance producer must complete ___ hour(s) of continuing education on the subject of law and ethics every reporting period. Provide an opinion. B) Bob's estate How often must an insurance producers license in Utah be renewed? D) Personal contract, The importance of a representation is demonstrated in what rule? 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. Advertisement. offer 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. Your email address will not be published. A contract that requires certain conditions or acts by the insured individual. Which of the following statements is TRUE? _______ is the authority given to a producer to transact business on behalf of the insurer. A policyowner is prohibited from making any changes to the policy without the beneficiarys written consent under which beneficiary designation? A) Contract may be accepted or rejected by the insured, The term which describes the fact that both parties of a contract may NOT receive the same value is referred to as. voidable 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. Sharing commissions with a producer licensed in the same line of business. Describe the structure. What does the word level in Level Term describe? Anheuser-Busch InBev is trying to reduce its water usage. Completing all applications and collecting initial premiums. To see this page as it is meant to appear, please enable your Javascript! 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 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. C) adhesion D) statements made in the application only, C) statements made in the application and the premium, According to life insurance contract law, insurable interest exists B) Indemnity At what point may a producer sell insurance for an insurer? B) premium only Because of this, an insurance contract is considered Are you looking for the correct answer to the question Which of the following BEST describes a conditional insurance contract?? 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? B) guarantee 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? D) imposed authority, What makes an insurance policy a unilateral contract? B) conditional 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. Rob recently died at age 60. 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. B) implied authority 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. Peril Hazard Loss factor Liability, Which of these techniques will remove the risk of losing money in the stock market by never purchasing stocks? A bilateral contract is an agreement between two parties in which each side agrees to fulfill their side of the bargain. B) Parent and children Vegetable B. 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? Ron has a life insurance policy with a face value of $100,000 and a cost of living rider. C) Law of Agency Karen is a producer who has obtained personal information about a client without having a legitimate reason to do so. acceptance B) Contract of adhesion 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? Which of these statements regarding the annuitant is CORRECT? C) Probability of loss The power given to an individual producer that is not specifically addressed in his/her contract is considered what type of authority? A) there must be an offer and acceptance The terms and conditions of insurance contracts should be carefully reviewed by policyholders before signing. B) A contract that has the potential for the unequal exchange of consideration for both parties The terms and conditions of insurance contracts should be carefully reviewed by policyholders before signing. What would happen if a life insurance applicant is given a conditional receipt? A marathon is 42.2 kilometers. C) representation Elizabeth is the beneficiary of a life insurance policy. imposed authority, In an insurance contract, the element that shows each party is giving something of value is called The death benefit paid will be what the premium would have purchased at the correct age, Converting a group plan to permanent life insurance requires, The conversion being applied for within 31 days of termination. The terms of the policy typically outline these conditions . representation 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? fichoh. A unilateral contract is one in which only one party makes a legally binding guarantee. B) the contract must be aleatory Log in for more information. B) Only the insured can change the provisions contain an offer and acceptance, In an insurance contract, the insurer is the only party legally obligated to perform. The policy may be paid up early by using policy dividends. 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". Which settlement option pays a stated amount to an annuitant, but no residual value to a beneficiary? When handling premiums for an insured, an agent is acting in which capacity? All of the following are considered appropriate uses if life insurance for business purposes EXCEPT, Protecting the business by covering entry level employees with life insurance, Level premium permanent insurance accumulates a reserve that will eventually. The policies continue in force with no change. How does life insurance create an immediate estate? C) Only the insurer is legally bound term, whole, and universal life insurance increasing term insurance joint, credit, and group life insurance adjustable, permanent, and limited-pay life insurance, 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. 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? Which of the following are the premium payments for a universal life policy NOT used for? Which of the following products would allow him to accomplish this? 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. there must be legal reasons for entering into the contract (C) Both parties exchange goods of equal value. 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? Countersignature, Which of the following is an example of the insured's consideration? Bob dies 12 months later. C) Law of large numbers Which of the following best describes how you analyze a fiction text? 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 D) the authority to add provisions to a contract, C) the authority to represent the insurer, Which of the following contracts is defined as "one that restores an injured party to the condition that was present before the loss"? Which of these riders will pay a death benefit if the insureds spouse dies? Before using an assumed name in Utah, a producer MUST, Maria would like an annuity that provides a guaranteed accumulation or payout. The present cash value of the policy equals $250,000. 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. consideration A Dalhousie University student training for distance running finds that, after running for x hours, her distance traveled, in kilometers, is given by, y=f(x)={10xif0x35x+15if3

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