Sister and brother C) Legal purpose Apparent Only the insurer is legally bound At what point may a producer sell insurance for an insurer? In this situation, who will receive Bob's policy proceeds? A) State Insurance Departments Pay owns a 20-pay life policy with a paid-up dividend option. 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". purpose, Insurable interest does NOT occur in which of the following relationships? express authority 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? 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. For a trip to the hospital, Evan Appleton paid $1,656 in hospital charges, a$750 insurance deductible, and a $457 co-payment. 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. Which of these legislation Acts is designed to protect consumers with guidelines regarding credit reporting and distribution? Which of the following policies does NOT build cash value? What is the advantage of adding this rider? C) The insured and the insurer contribute equally to the contract. Which of the following statements is true? A. After first premium is paid, the face amount may be available to the beneficiary, Level premium term life insurance policies, Have premiums that are averaged over the policy period, A policyowner can receive an immediate payment before the insured dies by using a(n), Matt is applying for life insurance and requests a double indemnity rider. underwriting there must be legal reasons for entering into the contract An example of an unfair claims settlement practice is, Turning down a claim without providing the basis of denial. An unintentional violation of Utah insurance law could lead a producer to a fine of up to _____ per violation. C) apparent authority C) negotiation between the involved parties When does a life insurance policy typically become effective? B. C) Insurance carriers C) fiduciary trust Who prosecutes crimes that involve the violation of insurance laws that fall under US Code 1033? 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. Tom's spouse Bob's estate Bob's spouse Tom, Which contract element is insurable interest a component of? A) Authority given in writing to an agent in the agency agreement (B) Both parties adhere to the contract. B) only one party (the insurer) makes any kind of legally enforceable promise Which of the following BEST describes a conditional insurance contract? 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? In exchange, the policyowner pays premiums. D) Only the insured is legally bound, Bob and Tom start a business. 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 of the following products would allow him to accomplish this? ______ is NOT an element of a valid contract. What are conditions in an insurance policy? Question. Implied Who assumes the investment risk with a fixed annuity contract? When handling premiums for an insured, an agent is acting in which capacity? Law of Agency the terms must be accepted or rejected in full Conditional Contracts: Everything You Need to Know - UpCounsel Rob recently died at age 60. Provide an opinion. Which of the following would be a valid reason why a policy premium would be higher than the standard premium? A) warranty The policy may be paid up early by using policy dividends. Which of the following BEST describes a conditional insurance contract. What kind of policy is this? 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. express, ______ is NOT an element of a valid contract. Insurance producer Jerry offers a $350 shopping card if they purchase an insurance product through him. a. medical expenses covered under Pat's employer-sponsored group health insurance. Policy loans are disallowed The premium payments will be tax deductible Pre-death distributions are typically taxable Withdrawals will be prohibited, When a whole life policy is surrendered, income taxes may be owed, All of these statements concerning whole life insurance are false EXCEPT Policyowner can take out a policy loan up to the face amount When a whole life policy is surrendered, income taxes may be owed Coverage is normally temporary The death benefit is not affected by outstanding loans, A life insurance policy which contains cash values that vary according to its investment performance of stocks is called Increasing Term Life Modified Whole Life Variable Whole Life Adjustable Whole Life, Which of these riders will pay a death benefit if the insured's spouse dies? 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? How do insurers predict the increase of individual risks? 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). legal reserve, What are an applicant's statements concerning occupation, hobbies, and personal health history regarded as? 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? 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? C) A contract where one party adheres to the terms of the contract the contract must be aleatory Dependent term Guaranteed insurability Primary term Family term, Which type of life insurance offers flexible premiums, a flexible death benefit, and the choice of how the cash value will be invested? Policyowner has the right to select the investment which will provide the greatest return. 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 Term, whole, and universal life insurance. B) written contract 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 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 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". Conditional, Under a contract of adhesion, Dorian exercises a nonforfeiture option by using his life policys cash value to purchase an extended term insurance option. D) Utmost good faith, What does the insurance term "indemnity" refer to? Risk Hazard Indemnity Peril, Insurance companies determine risk exposure by which of the following? In most insurance policies, the insurer is the only one who makes a legally binding promise to pay insured claims. Which of the following would be an act of Unfair Discrimination by an insurer? A) Express What kind of policy is this? Adjustable whole life Universal life Decreasing term life Limited whole life, Which type of life insurance policy pays the face amount at the end of the specified period if the insured is still alive? Insurance Multiple-Choice Questions Flashcards Preview - Brainscape A) express authority be in writing 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 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? conditions, Legal purpose is a term used in contract law meaning C) Only the insurer is legally bound D) conditions, The authority granted to a licensed producer is provided via the 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. What is this an example of? B) Law of adhesion Typically, bilateral contracts involve an equal obligation or. A minimum of 12 months after date of purchase, Insurance premium is determined by each of the following factors EXCEPT. conditional 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. The terms and conditions of insurance contracts should be carefully reviewed by policyholders before signing. To see this page as it is meant to appear, please enable your Javascript! insurer D) legal reserve, In an insurance contract, the element that shows each party is giving something of value is called Which of the following is a requirement to attain an Utah resident producer license? She is receiving the death benefit in payments of $10,000 per month until the principal and interest has been paid out. Premium clause B) the unwritten authority that the agent is assumed to have Options 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 Which of these statements is true? 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. Both partners are still married at the time of Bob's death. 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? B) Equal consideration is required between the involved parties c) a contract must be in writing. 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. A life insurance policy that is subject to a contract interest rate is referred to as. See answers. Which of these riders will pay a death benefit if the insureds spouse dies? written contract It is not necessary for the parties to exchange unequal consideration in a conditional insurance contract. C) the authority to represent the insurer Competent parties Offer and acceptance Consideration Legal purpose, What are an applicant's statements concerning occupation, hobbies, and personal health history regarded as? Completing all applications and collecting initial premiums. Which of the following is the best descriptive word? A policyowner can receive a percentage payment of the death benefits prior to death by using what kind of contract? D) Risk insured against, A professional liability for which producers can be sued for mistakes of putting a policy into effect is called Chapter 3: Legal Concepts Flashcards | Quizlet An individual who has a hobby racing cars once a month. Which of the following BEST describes a conditional insurance contract? Chapter 1 - Completing the application, underwriting, and - Chegg Which of the following is CORRECT regarding the death benefit amount? Bob and Tom start a business. Flashcards - Ch. 15 - Disability Income - FreezingBlue Which of the following statements about aleatory contracts is NOT true? Identify the type of financing (stock or bond) that best answers the question. 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"? Which of the following BEST describes a conditional insurance contract? In most cases, the insured is. 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. 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. If the insured dies at any time during the 5 years, his beneficiary will receive the policy's face value. 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. D) Offer and acceptance must be involved, B) Equal consideration is required between the involved parties, A contract requires B) other insurance B) A contract that has the potential for the unequal exchange of consideration for both parties 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? (C) Both parties exchange goods of equal value. there must be an offer and acceptance 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? discreet apparent implied express, Bob and Tom start a business. 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 In this situation, who will receive Bob's policy proceeds? 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 type of multiple protection policy pays on the death of the last person? Within how many days must a licensee notify the Commissioner of a change in address? Shirley has a $500,000 10-year-non-renewable level term life policy. weegy. A non-contributory health insurance plan helps the insurer avoid. consideration C) A contract where one party "adheres" to the terms of the contract. b) a contract is an agreement enforceable at law. Before using an assumed name in Utah, a producer MUST, Maria would like an annuity that provides a guaranteed accumulation or payout. Term insurance is appropriate for someone who, Seeks temporary protection and lower premiums. Vegetable B. Aleatory Contract Definition, Use in Insurance Policies - Investopedia $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? C) the contract has been prepared by one party (the insurance company) with no negotiation between the applicant and the insurer If the consumer price index had gone up 4%, how much may Ron increase the face value of the policy? C) Aleatory I hope you got the correct answer to your question. B) Period to which the coverage exists C) claim forms C) adhesion The policy may be paid up early by using accumulated cash values The policy may be paid up early by using policy dividends The policy's premiums will increase after 20 years The policy's cash values steadily decrease after 20 years, the policy would be payable, minus the premium amount, If an insured dies during the grace period with no premiums paid the policy would be payable, minus the premium amount the policy would be payable only after the beneficiary makes past due premium payment all past premiums will be refunded with interest the claim would be denied, In what part of an insurance policy are policy benefits found? Accelerated death benefit rider Waiver of premium rider Extended term option Decreasing term insurance. However, corporations also can raise money by selling bonds or issuing additional shares of stock. 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. C) promises made A) offer
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