Karen is a producer who has obtained personal information about a client without having a legitimate reason to do so. guarantee Term insurance is appropriate for someone who, Seeks temporary protection and lower premiums. 30 seconds. A) Competent parties 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. Which scenario would most life insurance policies exclude coverage for? The policy automatically converts to whole life after the 10-year period The face amount will remain constant and the premium will increase over the 10-year period The premium will remain constant and the face amount will increase over the 10-year period The face amount and premium will remain constant over the 10-year period, will no longer provide insurance protection, Shawn, Mike, and Dave are brothers who have a $100,000 "first to die" joint life policy covering all three of their lives. How does life insurance create an immediate estate? D) Terminate the agent, Insurable interest does NOT occur in which of the following relationships? What is the difference between insurance condition and warranty? Which of the following describes a person who is NOT acceptable by an insurer at standard rates because of health history, occupation, or hobbies? Which of the following best describes a symbol. What is created after policy proceeds are obtained in a lump sum and then immediately invested? 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. discreet apparent implied express, Bob and Tom start a business. legal reserve, What are an applicant's statements concerning occupation, hobbies, and personal health history regarded as? a. medical expenses covered under Pat's employer-sponsored group health insurance. A) Sue the insured Which of the following is NOT considered rebating? In this situation, who will receive Bob's policy proceeds? Life & Health 1 (Chapters 1, 2, 3, & 4) Flashcards Preview - Brainscape 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. 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? Are you looking for the correct answer to the question Which of the following BEST describes a conditional insurance contract?? In the case of an insurance contract, the contracting parties are the claimant and the insurer. Updated 10/6/2017 9:10:03 AM. B) A contract that has the potential for the unequal exchange of consideration for both parties D) Risk insured against, A professional liability for which producers can be sued for mistakes of putting a policy into effect is called Authority given to an agent to act outside the scope of 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, When the principal gives the agent authority in writing, it's referred to as How could a company manager use a process cost summary to determine if the program to reduce water usage is successful? A minimum of 12 months after date of purchase, Insurance premium is determined by each of the following factors EXCEPT. When the principal gives the agent authority in writing, its referred to as, The terms must be accepted or rejected in full. Insurance Cram Ch. 6 Flashcards | Chegg.com An insurer exaggerating its dividends in a magazine advertisement. 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. 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". What does a life insurance policy guarantee to the stated beneficiary upon the death of the insured? Which of the following BEST describes a conditional insurance contract. 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? A) Unilateral contract The authority granted to a licensed producer is provided via the 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? An example of an unfair claims practice would be, Failing to effectuate prompt, fair, and fair equitable settlements of a claim. Insurance Multiple-Choice Questions Flashcards Preview - Brainscape which of the following best describes a conditional insurance contract? which of the following best describes a conditional insurance contract? the terms must be accepted or rejected in full Which statement is CORRECT when describing a contract of adhesion? C) Bob's spouse A) A contract that requires certain conditions or acts by the insured individual B) guarantee When does a life insurance policy typically become effective? A provision that allows a policyowner to withdraw a policys cash value interest free is a(n), The Do Not Call Registry offers exemptions for calls placed from all of the following EXCEPT, All of these are valid options for an Adjustable Life Policy EXCEPT, The policys premium can be increased or decreased, An insurers claim settlement practices are regulated by the. Consideration 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? Which of these would NOT be an unfair claims practice? A contract that requires certain conditions or acts by the insured individual, According to life insurance contract law, insurable interest exists, The term which describes the fact that both parties of a contract may NOT receive the same value is referred to as. A) when any business relationship exists Post thoughts, events, experiences, and milestones, as you travel along the path that is uniquely yours. D) Consideration clause, When the principal gives the agent authority in writing, it's referred to as C) claim forms Child term rider Payor rider Family maintenance rider Family income rider, What happens to the coverage under a children's term rider when that child reaches a certain specified age? C) Authority given to handle claims and process payments A) Parties involved in the contract One-sided or unfair insurance contracts can, however, exist if they contain provisions that disproportionately benefit one party. (B) Both parties adhere to the contract. Which of the following Best Describes a Conditional Insurance Contract A) Make whole Which of the following is a requirement to attain an Utah resident producer license? Conditional Contracts: Everything You Need to Know - UpCounsel Bilateral Contract: Definition, How It Works, and Example - Investopedia apparent authority Authority given in writing to an agent in the agency agreement Adjustable life policy Modified life policy Endowment policy Universal life policy, How are survivorship life insurance policies helpful in estate planning? B) Law of adhesion D) Business owner and business client, Under a contract of adhesion, 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? Intentional withholding of material facts that would affect an insurance policy's validity is called a(n). Question and answer. B) issuance of the policy Eventually, they retire and dissolve the business. This legal agreement requires prior performance of another agreement or clause in order to be enforceable. B) producer It is not necessary for the parties to exchange unequal consideration in a conditional insurance contract. 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. D) collateral, Express power given to an agent in an agency agreement is which of the following best describes a conditional insurance contract be filed with the state representation 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. Question. Chapter 1 - Completing the application, underwriting, and - Chegg B) Consideration Which option was chosen? Dual Life insurance Joint Life insurance Last Survivor Life insurance Shared Life insurance, Index whole life insurance contains a securities component that acts as a(n) hedge against inflation premium stabilizer means to lowering taxes on earnings incentive to purchase more coverage, Which of the following are the premium payments for a Universal life policy NOT used for? Rob recently died at age 60. Juvenile insurance Family income insurance Spouse insurance Term rider, A life insurance policy written on one contract for two people in which it is payable upon the first death is called Split Shared Joint Survivorship, Level premium permanent insurance accumulates a reserve that will eventually equal the face amount of the policy pay a dividend to the policyowner require the policyowner to make periodic withdrawals become larger than the face amount, A permanent life insurance policy where the policyowner pays premiums for a specified number of years is called a(n) adjustable policy limited pay policy level term policy variable universal policy, term, whole, and universal life insurance, What types of life insurance are normally used for key employee indemnification? d) an agreement requires a definite offer and an indefinite acceptance. there is the potential for an unequal exchange of value B) the contract must be aleatory C) aleatory The terms of the policy typically outline these conditions . A) Tom's spouse Which Of The Following Best Describes A Conditional Insurance Contract B) only an offer I hope you got the correct answer to your question. 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. B) Equal consideration is required between the involved parties An individual who removes the risk of losing money in the stock market by never purchasing stocks is said to be engaging in. A) Authority given in writing to an agent in the agency agreement 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"? weegy. 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? What is the name of the provision which states that a copy of the application must be attached to the policy when issued? C) Competent parties acceptance The policy may be paid up early by using policy dividends. Because of this, an insurance contract is considered After 15 years, the cash value has accumulated to $100,000 and the policy's face amount has become $600,000. Accelerated death benefit rider Waiver of premium rider Extended term option Decreasing term insurance. The power given to an individual producer that is not specifically addressed in his/her contract is considered what type of authority? Elizabeth is the beneficiary of a life insurance policy. Bob dies 12 months later. a) a conditional acceptance allows the parties to negotiate the definite terms of the contract upon the completion of the contract. Chapter3. Legal Concepts of the Insurance Contract Under the Fair Credit Reporting Act, what is the maximum penalty that may be imposed on Ken? Competent parties Offer and acceptance Consideration Legal purpose, What are an applicant's statements concerning occupation, hobbies, and personal health history regarded as? C.$2,113 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. 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. 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. At what point may a producer sell insurance for an insurer? Nothing $100,000 $250,000 $500,000, Which type of life insurance is normally associated with a Payor Benefit rider? Which of the following BEST describes a conditional insurance contract (C) Both parties exchange goods of equal value. Apparent C) Materiality of concealment 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. D) Consideration, What are an applicant's statements concerning occupation, hobbies, and personal health history regarded as? B) Implied authority Which of these statements is true? What kind of policy is this? Who is responsible for assembling the policy forms for insureds? 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?
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