which of the following best describes a conditional insurance contract which of the following best describes a conditional insurance contract

(D) Only one party is legally bound to the contract. A non-contributory health insurance plan helps the insurer avoid. Waiver of premium Juvenile waiver Guaranteed insurability Payor benefit, Which of the following is a reinstatement condition? discreet D) Principal Capacity, A unilateral contract is one in which Barry offers Chris his mountain cabin for the weekend to secure his order for his insurance business. B) A contract that has the potential for the unequal exchange of consideration for both parties underwriting Preferred risk policies with reduced premiums are issued by insurance companies because the insured has, Better than average mortality or morbidity experience. B) only an offer The gap between the total death benefit and the policys cash value. ______ is NOT an element of a valid contract. Free Flashcards about Stack #2476860 - StudyStack insurer Food C. Plant D. Zucchini. A life insurance policyowner does NOT have the right to, Fixed annuities provide each of the following EXCEPT. Which of the following products would allow him to accomplish this? When the principal gives the agent authority in writing, its referred to as, The terms must be accepted or rejected in full. This rider is called a(n). there must be legal reasons for entering into the contract 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? the contract is voidable upon proof of fraud. issuance of the policy Insurance producer Jerry offers a $350 shopping card if they purchase an insurance product through him. D) unilateral, Who is responsible for assembling the policy forms for insureds? A) One party is restored to the same financial position the party was in before the loss occurred. 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? producer D) the contract must be a contract of adhesion, C) there must be legal reasons for entering into the contract, Ambiguities in an insurance policy are always resolved in favor of the The present cash value of the policy equals $250,000. consideration C) Insurance carriers This is also known as a non-negotiable insurance contract, or an automatic contract. Describe the structure. Completing all applications and collecting initial premiums. C) The insured and the insurer contribute equally to the contract. An applicants character and personal habits can be obtained for underwriting purposes from which source? (C) Both parties exchange goods of equal value. 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? C) apparent authority the insurer's obligations are dependent upon certain acts of the insured individual Which of the following BEST describes a conditional insurance contract? the policy provides a straight, level $100,000 of coverage for 5 years. When initial premium is collected and policy is issued. To see this page as it is meant to appear, please enable your Javascript! b) a contract is an agreement enforceable at law. Consideration clause 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. How many days is a temporary producers license valid? Which of the following is an example of the insureds consideration? 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? 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? Julie has a $100,000 30-year mortgage on her new home. D) Utmost good faith, What does the insurance term "indemnity" refer to? Notify me of follow-up comments by email. A) offer and acceptance What is the advantage of adding this rider? 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? insured The type of annuity she is seeking is called. C) Implied 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 is CORRECT regarding the death benefit amount? What is the difference between insurance condition and warranty? 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? Sharing commissions with a producer licensed in the same line of business. guarantee D) Intent, Which contract element is insurable interest a component of? In which form of corporate financing is the investor also an owner? 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". C) A contract where one party adheres to the terms of the 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? Which of the following would be an act of Unfair Discrimination by an insurer? See answers. Zucchini is the best descriptive word. The provision that allows this is called Partial Surrender Subrogation Automatic Premium Loan Accelerated Death Benefit, All of these are characteristics of a universal life insurance policy EXCEPT Flexible death benefit Fixed surrender value Flexible premiums Builds cash value, Which of the following policies does NOT build cash value? One-sided or unfair insurance contracts can, however, exist if they contain provisions that disproportionately benefit one party. B) acceptance 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 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. 2 See answers 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. Corporations, like all firms, can raise money by borrowing from banks and other lending institutions. 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? 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. Insurance Exam Flashcards | Chegg.com I hope you got the correct answer to your 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) Parent and children 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. Accelerated death benefit An example of an unfair claims practice would be A) there must be an offer and acceptance 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 A contract where only one party makes any kind of enforceable contract, statements made in the application and the premium, In a life or health insurance contract, "consideration" would be the offer and acceptance premium only statements made in the application and the premium statements made in the application only, 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 underwriting issuance of the policy promises made legal reserve, All of the following are elements of an insurance policy EXCEPT definitions other insurance claim forms conditions, The term which describes the fact that both parties of a contract may NOT receive the same value is referred to as Apparent Estoppel Aleatory Unilateral, Which of the following is an example of the insured's consideration? The terms of the policy typically outline these conditions, which may include paying premiums on time and maintaining the insured property in good condition. Which of the following best defines diction? A. simile B - Weegy A life insurance claim which involves a per capita distribution of policy proceeds would be payable to the. Only the insurance company has legal obligations. Question. Rob recently died at age 60. D) legal reserve, In an insurance contract, the element that shows each party is giving something of value is called A) Express His insurance agent told him the policy would be paid up if he reached age 100. Which of the following statements about aleatory contracts is NOT true? Which of the following best describes a symbol Which of the following is a TRUE statement? other insurance C) aleatory A) Authority given in writing to an agent in the agency agreement Which policy requires an agent to register with the National Association of Securities Dealers (NASD) before selling? Because you're already amazing. The terms of the policy typically outline these conditions . Under the Fair Credit Reporting Act, what is the maximum penalty that may be imposed on Ken? Aleatory Contract: A contract type in which the parties involved do not have to perform a particular action until a specific event occurs. B) Parent and children Term insurance is appropriate for someone who, Seeks temporary protection and lower premiums. 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 the following best describes a conditional insurance contract 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. 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. An insurance contract usually involves an exchange of consideration between both parties: the insurer agrees to provide coverage and pay claims in the event of a loss, and the policyholder agrees to pay premiums in return. D) collateral, Express power given to an agent in an agency agreement is 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 is the best descriptive word? A - Weegy implied 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. B) Contract of adhesion Use the binomial distribution to find P(x13)P(x \leq 13)P(x13) if the stain removal product's claim is correct. 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) Contract must have a legal purpose 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. A) when any business relationship exists A) there is the potential for an unequal exchange of value A life insurance contract guarantees to the beneficiary not only a death benefit, but a payment of a sum of money in perpetuity, called a death benefit for that purpose of insurance coverage. C) there must be legal reasons for entering into the contract which of the following best describes a conditional insurance contract A type of group that has a constitution and bylaws and has been organized for purposes other than obtaining insurance is called a(n). She is receiving the death benefit in payments of $10,000 per month until the principal and interest has been paid out. B. Of the following dividend options, which of these is taxable? In most insurance policies, the insurer is the only one who makes a legally binding promise to pay insured claims. B) Consideration Bob and Tom start a business. 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. LIFE INSURANCE LICENSING EXAM Flashcards | Chegg.com Adjustable life policy Modified life policy Endowment policy Universal life policy, How are survivorship life insurance policies helpful in estate planning? An example of an unfair claims practice would be, Failing to effectuate prompt, fair, and fair equitable settlements of a claim. The policies continue in force with no change. C) negotiation between the involved parties 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? C) Consideration Under a life insurance policy, what does the insuring clause state? A) Parties involved in the contract 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. purpose, Insurable interest does NOT occur in which of the following relationships? conditional C) Legal purpose weegy. C) Law of Agency 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+15if3Flashcards - Connecticut Insurance Test 2021 - FreezingBlue 2003-2023 Chegg Inc. All rights reserved. A) estoppel express, ______ is NOT an element of a valid contract. The terms of the policy typically outline these conditions, which may include paying premiums on time and maintaining the insured property in good condition. Provide an opinion. D) Business owner and business client, Under a contract of adhesion, D) Personal contract, The importance of a representation is demonstrated in what rule? C) A contract where one party "adheres" to the terms of the contract. 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). only one party makes any kind of enforceable promise, the terms must be accepted or rejected in full, 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". A) Sister and brother 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) Unequal consideration B) Only the insured can change the provisions Insurance interest does NOT occur in which of the following relationships? 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. if the insured lives beyond the 5 years, no benefits are payable. A) Insurable interest Which type of multiple protection policy pays on the death of the last person? B) guarantee A) producer's apparent authority In most cases, the insured is. What are an applicants statements concerning occupation, hobbies, and personal health history regarded as? Which of the following BEST describes a conditional insurance contract? A (D) Only one party is legally bound to the contract. Which market index is normally associated with an indexed annuitys rate of return? After a number of years, the policy's cash value accumulates to $50,000 and the face amount becomes $350,000. Your email address will not be published. Which Of The Following Best Describes A Conditional Insurance Contract Pay owns a 20-pay life policy with a paid-up dividend option. Which scenario would most life insurance policies exclude coverage for? B) concealment Which of these is considered to be a disadvantage of owning this type of annuity? Which dividend option would an insurer invest the policyowners money and add any interest earnings as the dividends accrue? A) A contract that requires certain conditions or acts by the insured individual Eventually, they retire and dissolve the business. contain an offer and acceptance, In an insurance contract, the insurer is the only party legally obligated to perform. Which of the following is a reinstatement condition? 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? 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? D) Legal Purpose, Which of the following is present when an applicant stands to lose value if the insured dies? It is not necessary for the parties to exchange unequal consideration in a conditional insurance contract. An insurance applicant with a below-average likelihood of loss is typically considered to be a. the contract must be aleatory promises made Which type of life insurance policy is this? What types of life insurance are normally used for key employee indemnification? If thats the case, you dont have to worry anymore. representation Which of the following best describes a symbol. Which Of The Following Best Describes A Conditional Insurance Contract. In this situation, who will receive Bob's policy proceeds? The power given to an individual producer that is not specifically addressed in his/her contract is considered what type of authority? 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? Utah requires that an insurance producer must complete ___ hour(s) of continuing education on the subject of law and ethics every reporting period. Write a summary of the main ideas. Which of these is considered to be a Living Benefit option in a life insurance policy? In order for a contract to be valid, it must. Apparent 3. D) Terminate the agent, Insurable interest does NOT occur in which of the following relationships? aleatory Death benefits Cash value Loading costs Separate account investments, Which policy feature makes a universal life policy different from a whole life policy? Bob dies 12 months later. Term Straight Life Endowment Variable Life, A life insurance policy that has premiums fully paid up within a stated time period is called stated payment insurance limited universal insurance stated modified insurance limited payment insurance, Reggie purchased a life insurance policy with a face amount of $500,000.