Which of these features are held exclusively by variable universal life insurance? It is a nonprofit organization that maintains underwriting information on applicants for life and health insurance. B) other insurance In exchange, the policyowner pays premiums. The above question Which of the following BEST describes a conditional insurance contract?, Was part of Insurance MCQs & Answers.
Life & Health 1 (Chapters 1, 2, 3, & 4) Flashcards Preview - Brainscape Which of the following best describe the term definition In the case of an insurance contract, the contracting parties are the claimant and the insurer. A) when any business relationship exists 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? When the principal gives the agent authority in writing, its referred to as, The terms must be accepted or rejected in full. 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. Which of the following statements is true? 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? A) fiduciary bond A type of group that has a constitution and bylaws and has been organized for purposes other than obtaining insurance is called a(n). Food C. Plant D. Zucchini. B) Offer and acceptance C) the contract has been prepared by one party (the insurance company) with no negotiation between the applicant and the insurer B) A contract that has the potential for the unequal exchange of consideration for both parties Peril Hazard Loss factor Liability, Which of these techniques will remove the risk of losing money in the stock market by never purchasing stocks? C) claim forms A) State Insurance Departments Which statement is CORRECT when describing a contract of adhesion? A double indemnity benefit will be payable to Matts beneficiary is Matt, All of the following riders can increase the death benefit amount EXCEPT, All of these are valid policy dividend options for a life insurance policyowner EXCEPT, The premium for a Modified whole life policy is, Lower than the typical whole life policy during the first few years and then higher than typical for the remainder, A nonparticipating company is sometimes called a(n), Intentional withholding of material facts that would affect an insurance policys validity is called a(n), Signatures for an insurance application MUST be obtained by the producer from all of the following sources EXCEPT. B) Equal consideration is required between the involved parties be signed and witnessed by an attorney GENERAL LAW OF CONTRACTS A contract is an agreement enforceable by law. A) Parties involved must be competent express, ______ is NOT an element of a valid contract. Events are those which cannot be controlled by either . aleatory An individual who removes the risk of losing money in the stock market by never purchasing stocks is said to be engaging in. voidable Authority given in writing to an agent in the agency agreement discreet apparent implied express, Bob and Tom start a business. One-sided or unfair insurance contracts can, however, exist if they contain provisions that disproportionately benefit one party. Which of the following is an annuity that is linked to a market-related index?
implied C) promises made The two major actions required for a policyowner to comply with the Reinstatement Clause are, Provide evidence of insurability, pay past due premiums, The term which describes the fact that both parties of a contract may NOT receive the same value is referred to as. weegy. C) Consideration Competent parties B) A contract that has the potential for the unequal exchange of consideration for both parties Completing all applications and collecting initial premiums. B) Contract of adhesion Bob dies 12 months later. 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? B) premium only Which Of The Following Statements About Personal Selling Is Correct? Which of these would NOT be an unfair claims practice? 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? claim forms An example of an unfair claims settlement practice is, Turning down a claim without providing the basis of denial. 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) 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. Expert answered| selymi |Points 23307|. 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. A) Unilateral contract 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? conditions, Legal purpose is a term used in contract law meaning Because you're already amazing. Answer Explanation: A contract that requires certain conditions or acts by the insured individual. ______ is NOT an element of a valid contract. The gap between the total death benefit and the policys cash value. A life insurance policyowner does NOT have the right to, Fixed annuities provide each of the following EXCEPT. C) The insured and the insurer contribute equally to the contract. Tom's spouse Bob's estate Bob's spouse Tom, Which contract element is insurable interest a component of? I hope you got the correct answer to your question. The insurers obligation to pay a death benefit upon an approved death claim. 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. 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. How could a company manager use a process cost summary to determine if the program to reduce water usage is successful? In order for a contract to be valid, it must. Science Study Guide Questions. Which of the following BEST describes a conditional insurance contract? B) Law of adhesion Administrative actions taken against a producer must be reported to the Commissioner within ____ days. A) there is an element of chance and potential for unequal exchange of value or consideration for both parties Premium clause Consideration clause Adhesion clause Contestability clause, When the principal gives the agent authority in writing, it's referred to as express authority implied authority apparent authority imposed authority, Ambiguities in an insurance policy are always resolved in favor of the insured producer insurer underwriter, ______ is NOT an element of a valid contract. A(n) ________ investigates, negotiates, and settles claims for a few on behalf of an insurance company. Competent parties Offer and acceptance Consideration Legal purpose, What are an applicant's statements concerning occupation, hobbies, and personal health history regarded as? 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.
Which of the following best describes a conditional insurance contract C) Probability of loss Countersignature, Which of the following is an example of the insured's consideration? Loans obtained by a policyowner against the cash value of a life insurance policy. C) there must be legal reasons for entering into the contract B) conditional Legal A person who is a nonsmoker, of average weight, and in excellent health would most likely be in which risk classification? Policyowner has the right to select the investment which will provide the greatest return. What is the difference between insurance condition and warranty?
Which of the following best defines diction? A. simile B - Weegy Nothing $100,000 $250,000 $500,000, Which type of life insurance is normally associated with a Payor Benefit rider? Which of the following is CORRECT regarding the death benefit amount? His insurance agent told him the policy would be paid up if he reached age 100. Anheuser-Busch InBev is trying to reduce its water usage. Which of these statements is true? C) A contract where one party "adheres" to the terms of the contract. $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? A marathon is 42.2 kilometers. Which of the following best describes a symbol. a. medical expenses covered under Pat's employer-sponsored group health insurance. Who assumes the investment risk with a fixed annuity contract? The face amount and premium will remain constant over the 10-year period. Insurers must maintain files of all documents used for solicitation for ____ year(s) after the last authorizes date of use. issuance of the policy 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. apparent authority be filed with the state A. B) Implied authority A (D) Only one party is legally bound to the contract.
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 D) conditions, The authority granted to a licensed producer is provided via the Zucchini is the best descriptive word. Which of the following does a producer NOT have a fiduciary responsibility to? Eventually, they retire and dissolve the business. A) A contract that requires certain conditions or acts by the insured individual With a life insurance contract, the insurer binds itself to pay a certain sum upon the death of the insured. 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?
B) Unequal consideration unilateral, Ambiguities in an insurance policy are always resolved in favor of the 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? 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? 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. Ken is a producer who has obtained Consumer Informations Reports under false pretenses. Orissa purchases a 10-year level term life insurance policy that has a death benefit of $200,000. 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". How do insurers predict the increase of individual risks? (A) Both parties to the contract are bound to the terms. Both partners are still married at the time of Bob's death. Which of these statements regarding the annuitant is CORRECT? 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.
Insurance Cram Ch. 6 Flashcards | Chegg.com An unintentional violation of Utah insurance law could lead a producer to a fine of up to _____ per violation. To see this page as it is meant to appear, please enable your Javascript! Which of the following is NOT considered rebating? 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
Chapter 3 Legal Concepts of the Insurance Contract - Quizlet It is not necessary for the parties to exchange unequal consideration in a conditional insurance contract. Connect the text to your own experiences. Law of Agency D) misrepresentation, Which of the following is NOT required in the content of a policy? Bilateral Contract: Definition, How It Works, and Example - Investopedia B) NAIC Which of the following is true of the law of contracts? An example of an unfair claims practice would be, Failing to effectuate prompt, fair, and fair equitable settlements of a claim. How many days is a temporary producers license valid? A) One party is restored to the same financial position the party was in before the loss occurred. Vegetable B. 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. If the insured dies at any time during the 5 years, his beneficiary will receive the policy's face value. B) errors and omissions Provide funds to help fund retirement Provide funds to help pay taxes Provide funds for funeral expenses Provide tax deductions for premium payments, lower than the typical whole life policy during the first few years and then higher than typical for the remainder, The premium for a Modified whole life policy is higher than the typical whole life policy during the first few years and then lower than typical for the remainder lower than the typical whole life policy during the first few years and then higher than typical for the remainder normally graded over a period of 20 years level for the first 5 years then decreases for the remainder of the policy, The type of policy which pays on the death of the last person is called joint life survivorship life dual life shared life, A life insurance policy that is subject to a contract interest rate is referred to as adjustable life group life term life universal life, a policy that is paid up after only one payment, A single premium cash value policy can be described as a policy that is paid up after only one payment a policy that only requires an annual payment a policy that is guaranteed issue a policy that covers two or more lives, A limited payment whole life policy provides protection for 20 years lifetime protection protection for more than one person discounted premiums, A policyowner may change two policy features on what type of life insurance? Which of the following statements is TRUE? What is this an example of? Which market index is normally associated with an indexed annuitys rate of return? A) Insurable interest D) Competent parties, Which of the following BEST describes a conditional insurance contract? 2 See answers All of these are typically sources of underwriting information for life or health insurance EXCEPT. definitions Which type of multiple protection policy pays on the death of the last person? C) Competent parties Which of the following would be considered an underwriting duty of an agent? 0 Answers/Comments. Because of this, an insurance contract is considered A) the appearance of authority an insurer gives to its agent Both partners are still married at the time of Bob's death. A) underwriting 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)? be in writing The policies continue in force with no change. The insured, on the other hand, makes few, if any, legally binding promises to the insurer. Log in for more information. 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? Which military service exclusion clause would pay upon his death? B) Bob's estate This is an example of: An example of unfair discrimination would be, When an insurer charges a higher rate for insurance based on an insureds race, religion, or national origin, Fixed period settlement options are considered to be a form of a(n). A) Sue the insured Identify the type of financing (stock or bond) that best answers the question. 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 C) at the time of death Have a great time ahead. At what point may a producer sell insurance for an insurer? Which of these features are held exclusively by variable universal life insurance? Which of the following statements about aleatory contracts is NOT true? 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. A policyowner is prohibited from making any changes to the policy without the beneficiarys written consent under which beneficiary designation? What is this called? Consideration clause Principal Capacity, All of the following are elements of an insurance policy EXCEPT Field underwriting performed by the producer involves, Completing the application and collecting initial premium, An employee under a group insurance policy has the right to name a beneficiary and the right to, Convert to an individual policy in the event of employment termination.