which of the following best describes a conditional insurance contract

It allows for a spouse to be added as a rider to a life insurance policy It allows for policy loans to be advanced to the insured in the event of unemployment It allows for cash advances to be paid against the death benefit if the insured becomes terminally ill It allows for a third party to purchase a life insurance policy at a discounted rate and immediately advance a portion of the death benefit, All of these are standard exclusions found in a life insurance policy EXCEPT hazardous occupations aviation disability war, Which dividend option would an insurer invest the policyowner's money and add any interest earnings as the dividends accrue? When handling premiums for an insured, an agent is acting in which capacity? A) fiduciary bond Which of the following would be an act of Unfair Discrimination by an insurer? Under the Fair Credit Reporting Act, what is the maximum penalty that may be imposed in Ken? The present cash value of the policy equals $250,000. The agent's obligation to provide the proper amount of coverage The insurer's obligation to return all premiums upon an approved death claim The insurer's obligation to pay a death benefit upon an approved death claim The agent's obligation to pay a death benefit upon an approved death claim, Of the following dividend options, which of these is taxable? Preferred risk policies with reduced premiums are issued by insurance companies because the insured has, Better than average mortality or morbidity experience. other insurance A) Make whole underwriting Andy the annuitant dies before the annuity start date. Which of the following best describes a conditional insurance contract both parties consent to the contract. Conditional, Under a contract of adhesion, A policy containing exclusions or limits that are not clearly disclosed to the policyholder, or a premium that is significantly higher than the risk covered, could be considered unfair or one-sided. 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. Which policy requires an agent to register with the National Association of Securities Dealers (NASD) before selling? 2 See answers If Sharon MUST obtain Mikes signature in order to change the beneficiary, what kind of beneficiary designations is this? Identify the type of financing (stock or bond) that best answers the question. Insurance Multiple-Choice Questions Flashcards Preview - Brainscape Which of the following are the premium payments for a universal life policy NOT used for? However, corporations also can raise money by selling bonds or issuing additional shares of stock. An insurance applicant with a below-average likelihood of loss is typically considered to be a. Which of the following BEST describes a conditional insurance contract? 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. Insurer's promise to pay benefits promises made D) Business owner and business client, Under a contract of adhesion, What is the advantage of adding this rider? Under the Fair Credit Reporting Act, what is the maximum penalty that may be imposed on Ken? Insurers must maintain files of all documents used for solicitation for ____ year(s) after the last authorizes date of use. 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? B) A contract that has the potential for the unequal exchange of consideration for both parties fichoh. Eventually, they retire and dissolve the business. producer offer b. benefits paid under workers compensation. What is the name of the provision which states that a copy of the application must be attached to the policy when issued? 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? Which of the following best describes the MIB? Which of these statements regarding the annuitant is CORRECT? Term, whole, and universal life insurance. B) premium only If threats or force is used to affect an insurance transaction, the unfair trade practice of __________ has been committed. 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. How do insurers predict the increase of individual risks? Anheuser-Busch InBev is trying to reduce its water usage. apparent authority A Modified Endowment Contract (MEC) is best described as, A life insurance contract which accumulated cash values higher than the IRS will allow, Doctors pooling their money to cover malpractice exposures, The free-look provision gives the policyowner, The right to return the policy for a full refund within a specified number of days. 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? All of the following statements about Carl's coverage are correct. be signed and witnessed by an attorney A) A contract that requires certain conditions or acts by the insured individual C) Charge more premium 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? 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 If she dies 15 years after the policys inception date, how much will her beneficiary receive? Ken is a producer who has obtained Consumer Informations Reports under false pretenses. Policy Application Riders Certificate of Authority, A life insurance rider that allows an individual to purchase insurance as they grow older, regardless of insurability, is called a(n) guaranteed term rider guaranteed insurability rider accelerated benefit rider cost of living rider, The suicide clause of a life insurance policy states that if an insured commits suicide within a stated period from the policy's inception, the insurer will only be liable for a return of premiums paid minus indebtedness and with interest during the last 12 months minus indebtedness and without interest during the last 6 months, A life insurance policyowner does NOT have the right to change a beneficiary select a beneficiary take out a policy loan revoke an absolute assignment, A life insurance policy normally contains a provision that restricts coverage in the event of death under all of the following situations EXCEPT fare-paying passenger pilot of personal airplane suicide war, The insurer's obligation to pay a death benefit upon an approved death claim, Under a life insurance policy, what does the insuring clause state? 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? B) implied authority D. $2,863. What kind of policy is this? Accelerated death benefit An example of an unfair claims practice would be Competent parties Offer and acceptance Consideration Legal purpose, What are an applicant's statements concerning occupation, hobbies, and personal health history regarded as? How do marketers use insights regarding the self-concept? there is the potential for an unequal exchange of value C) A contract where one party "adheres" to the terms of the contract A) Tom's spouse A contract that requires certain conditions or acts by the insured individual Which of these is considered to be a Living Benefit option in a life insurance policy? Post thoughts, events, experiences, and milestones, as you travel along the path that is uniquely yours. What was his total bill? Free Flashcards about Stack #2476860 - StudyStack B. Which of the following BEST describes a conditional insurance contract? D) Only the insured is legally bound, Bob and Tom start a business. Which of the following best describes how you analyze a fiction text? LIFE INSURANCE LICENSING EXAM Flashcards | Chegg.com Both partners are still married at the time of Bob's death. Connect the text to your own experiences. B) Apparent Completing all applications and collecting initial premiums. 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. A) implied authority Which of these factors is NOT taken into account when determining an applicants life insurance needs? See answers. Pay owns a 20-pay life policy with a paid-up dividend option. At what point may a producer sell insurance for an insurer? legal reserve, What are an applicant's statements concerning occupation, hobbies, and personal health history regarded as? When initial premium is collected and policy is issued. insured C) adhesion C) the contract has been prepared by one party (the insurance company) with no negotiation between the applicant and the insurer Asked 10/6/2017 7:04:21 AM. Aleatory Contract: A contract type in which the parties involved do not have to perform a particular action until a specific event occurs. C) Materiality of concealment conditions, Legal purpose is a term used in contract law meaning written contract 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. 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) 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. 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 A) warranty 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. Which military service exclusion clause would pay upon his death? 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. Because of this, an insurance contract is considered voidable conditional aleatory unilateral, Who is responsible for assembling the policy forms for insureds? B) Offer and acceptance Advertisement. Because you're already amazing. Peril Hazard Loss factor Liability, Which of these techniques will remove the risk of losing money in the stock market by never purchasing stocks? Conditional Contracts: Everything You Need to Know - UpCounsel 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. 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 C) aleatory if the insured lives beyond the 5 years, no benefits are payable. Which of the following BEST describes a conditional insurance contract? In this situation, who will receive Bob's policy proceeds? c. income earned by Pat's spouse. 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? 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? C) the terms must be accepted or rejected in full D) conditions, The authority granted to a licensed producer is provided via the representation B) Unequal consideration Adjustable life policy Modified life policy Endowment policy Universal life policy, How are survivorship life insurance policies helpful in estate planning? A unilateral contract is one in which only one party makes a legally binding guarantee. discreet apparent implied express, Bob and Tom start a business. D) Consideration, What are an applicant's statements concerning occupation, hobbies, and personal health history regarded as? A.$1,656 Orissa purchases a 10-year level term life insurance policy that has a death benefit of $200,000. D) Offer and acceptance must be involved, B) Equal consideration is required between the involved parties, A contract requires What kind of policy is this? Write a summary of the main ideas. B) the contract must be aleatory Are you looking for the correct answer to the question 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? The above question Which of the following BEST describes a conditional insurance contract?, Was part of Insurance MCQs & Answers. B) Parent and children It is a nonprofit organization that maintains underwriting information on applicants for life and health insurance. D) Tom, The deeds and actions of a producer indicate what kind of authority? C) Law of Agency claim forms Eventually, they retire and dissolve the business. Only the insured pays the premium (A) Both parties to the contract are bound to the terms. In exchange, the policyowner pays premiums. express authority Which of the following is NOT considered rebating? d. a deductible stated in the policy's provision. Which of the following statements about aleatory contracts is NOT true? Which of the following BEST describes a conditional insurance contract 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. 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? 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. A life insurance claim which involves a per capita distribution of policy proceeds would be payable to the. 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 producer's apparent authority Describe the structure. The insurers obligation to pay a death benefit upon an approved death claim. which of the following best describes a conditional insurance contract C) insurer Chapter 3 Legal Concepts of the Insurance Contract - Quizlet The terms of the policy typically outline these conditions, which may include paying premiums on time and maintaining the insured property in good condition. Her son, Mike, is the beneficiary. 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 new stain removal product claims to completely remove the stains on 909090 percent of all stained garments. Lisa has recently bought a fixed annuity. Of the following dividend options, which of these is taxable? Risk Hazard Indemnity Peril, Insurance companies determine risk exposure by which of the following? 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. imposed authority, In an insurance contract, the element that shows each party is giving something of value is called Under the McCarran-Ferguson Act, what is the minimum penalty for this? C) The insured and the insurer contribute equally to the contract. Intent, The deeds and actions of a producer indicate what kind of authority? 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. 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 death benefit would be $250,000 $750,000 $375,000 $500,000, What does the word "level" in Level Term describe? Ron has a life insurance policy with a face value of $100,000 and a cost of living rider. 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? Sister and brother When the principal gives the agent authority in writing, its referred to as, The terms must be accepted or rejected in full. Express D) Intent, Which contract element is insurable interest a component of? Countersignature, Which of the following is an example of the insured's consideration? Sister and brother Parent and children Business partners Business owner and business client, The deeds and actions of a producer indicate what kind of authority? A policy containing exclusions or limits that are not clearly disclosed to the policyholder, or a premium that is significantly higher than the risk covered, could be considered unfair or one-sided. nonparticipating life insurance policy participating life insurance policy divisible surplus life insurance policy straight life insurance policy, Which of the following is considered to be an event or condition that increases the probability of an insured's loss? issuance of the policy 30 seconds. Death benefits Cash value Loading costs Separate account investments, Which policy feature makes a universal life policy different from a whole life policy? Which of the following is a requirement to attain an Utah resident producer license? An individual who has a hobby racing cars once a month. Science Study Guide Questions. A) offer Plot this function and determine if she is ready to attempt the Bluenose Marathon. Which Of The Following Best Describes A Conditional Insurance Contract a) a conditional acceptance allows the parties to negotiate the definite terms of the contract upon the completion of the contract. Which of these statements is true? D) Terminate the agent, Insurable interest does NOT occur in which of the following relationships? What is the meaning of par value of stock with respect to the corporate form of organization? D) Personal contract, The importance of a representation is demonstrated in what rule? 2003-2023 Chegg Inc. All rights reserved. What is the difference between insurance condition and warranty? 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 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. During periods of inflation, annuitants will experience a decrease in purchasing power of their payments. Increasing Term Life policy Nonparticipating policy Modified Whole Life policy Universal Life policy, What is the automatic continuance of insurance coverage referred to as? Life & Health 1 (Chapters 1, 2, 3, & 4) Flashcards Preview - Brainscape D) unilateral, Who is responsible for assembling the policy forms for insureds? Bob dies 12 months later. 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? It is not necessary for the parties to exchange unequal consideration in 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. His insurance agent told him the policy would be paid up if he reached age 100. Corporations, like all firms, can raise money by borrowing from banks and other lending institutions. A (D) Only one party is legally bound to the contract. A contract that requires certain conditions or acts by the insured individual. B) Bob's estate D) Risk insured against, A professional liability for which producers can be sued for mistakes of putting a policy into effect is called which of the following best describes a conditional insurance contract The face amount and premium will remain constant over the 10-year period. 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? Connect with others, with spontaneous photos and videos, and random live-streaming. Law of Agency A) Sister and brother The Fair Credit Reporting Acts main purpose is to, Protect consumers with guidelines regarding credit reporting and distribution, A whole life insurance policy accumulated cash value that becomes, The policy loan value which the insured may borrow against. The present cash value of the policy equals $250,000. A policyowner can receive a percentage payment of the death benefits prior to death by using what kind of contract? 0 Answers/Comments. Karen is a producer who has obtained personal information about a client without having a legitimate reason to do so. Who is responsible for assembling the policy forms for insureds? Which of the following is the best descriptive word? A - Weegy

which of the following best describes a conditional insurance contract 2023