which of the following best describes a conditional insurance contractheart 1980 tour dates
express, ______ is NOT an element of a valid contract. A) Unilateral contract Updated 10/6/2017 9:10:03 AM. A) estoppel B) Bob's estate Karen is a producer who has obtained personal information about a client without having a legitimate reason to do so. A) Sue the insured producer A unilateral contract is one in which only one party makes a legally binding guarantee. both parties consent to the contract. the insurer's obligations are dependent upon certain acts of the insured individual A) A contract that requires certain conditions or acts by the insured individual Which of these statements is true? How many days is a temporary producers license valid? Which of the following BEST describes a conditional insurance contract? Intent, The deeds and actions of a producer indicate what kind of authority? 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? fichoh. Corporations, like all firms, can raise money by borrowing from banks and other lending institutions. implied authority In the case of an insurance contract, the contracting parties are the claimant and the insurer. Principal Capacity, All of the following are elements of an insurance policy EXCEPT 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 $2,406 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. B. It is a nonprofit organization that maintains underwriting information on applicants for life and health insurance. acceptance The principle of insurable interest, in regards to a life insurance contract, is accurately described in which statement? Which of the following best describes a symbol. C) A contract where one party "adheres" to the terms of the contract. 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 Sharing commissions with a producer licensed in the same line of business. C) Indemnity contract 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 insured D) unilateral, Who is responsible for assembling the policy forms for insureds? Log in for more information. 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. 2 See answers Offering payment of approved claims within 30 days after affirming liability. C) Apparent authority 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 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? Which of the following BEST describes a conditional insurance contract? Preferred risk policies with reduced premiums are issued by insurance companies because the insured has, Better than average mortality or morbidity experience. The coverage, conditions, and limitations in the master policy of a group contract can be found in which document? 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. Events are those which cannot be controlled by either . If the other agreement or condition is performed, then the conditional contract is . Your email address will not be published. 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? 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 It is not necessary for the parties to exchange unequal consideration in a conditional insurance contract. She would like to borrow $15,000 against the cash value. Of the following dividend options, which of these is taxable? Group policy Adjustable life policy Whole life policy Endowment policy, A renewable Term Life insurance policy allows the policyowner the right to renew the policy at anytime the policyowner chooses as many times as the policyowner chooses paying the same premium as before the renewal without producing proof of insurability, When a decreasing term policy is purchased, it contains a decreasing death benefit and increasing premiums level premiums decreasing premiums variable premiums, Julie has a $100,000 30-year mortgage on her new home. Before using an assumed name in Utah, a producer MUST, Maria would like an annuity that provides a guaranteed accumulation or payout. Which of these statements is true? A new stain removal product claims to completely remove the stains on 909090 percent of all stained garments. The policies continue in force with no change. Because you're already amazing. A) Authority given in writing to an agent in the agency agreement Which of the following policies does NOT build cash value? Loans obtained by a policyowner against the cash value of a life insurance policy. If threats or force is used to affect an insurance transaction, the unfair trade practice of __________ has been committed. Which of the following would be a valid reason why a policy premium would be higher than the standard premium? claim forms 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? B. 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. $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? A contract that requires certain conditions or acts by the insured individual, According to life insurance contract law, insurable interest exists, The term which describes the fact that both parties of a contract may NOT receive the same value is referred to as. In most cases, the insured is. 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. 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? Express 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". However, corporations also can raise money by selling bonds or issuing additional shares of stock. B) guarantee Legal purpose Which Of The Following Best Describes A Conditional Insurance Contract. What does the Group Life underwriting risk selection process help protect insurance companies from? 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) Utmost good faith, What does the insurance term "indemnity" refer to? Authority given to an agent to act outside the scope of the agency agreement, Authority that is not specifically given to an agent in the agency contract, but that an agent can reasonably assume to carry out his/her duties, When the principal gives the agent authority in writing, it's referred to as Parent and children 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)? The policies continue in force with no change. 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 Consideration clause B) Rescind the policy Because of this, an insurance contract is considered voidable conditional aleatory unilateral, Who is responsible for assembling the policy forms for insureds? 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 Bob dies 12 months later. Which of the following is an annuity that is linked to a market-related index? In this situation, who will receive Bob's policy proceeds? Connect with others, with spontaneous photos and videos, and random live-streaming. the terms must be accepted or rejected in full When the principal gives the agent authority in writing, its referred to as, The terms must be accepted or rejected in full. A) Insurer's promise to pay benefits A) definitions 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). This legal agreement requires prior performance of another agreement or clause in order to be enforceable. D) legal reserve, In an insurance contract, the element that shows each party is giving something of value is called Insurance interest does NOT occur in which of the following relationships? In order to maintain coverage and make a successful claim, its crucial that policyholders read and understand their insurance contract carefully. Adjustable life Credit life Modified life Universal life, Whole life policy with premiums paid up after 20 years, Which of these would be the best example of a limited pay life insurance policy? A life insurance policy that is subject to a contract interest rate is referred to as. D) Consideration clause, When the principal gives the agent authority in writing, it's referred to as Variable life insurance and Universal life insurance are very similar. Provide death benefits Provide money for retirement Provide living benefits Provide money for college, The Do Not Call Registry offers exemptions for calls placed from all of the following EXCEPT charities political organizations insurance sales calls surveys, protect consumers with guidelines regarding credit reporting and distribution, The Fair Credit and Reporting Act's main purpose is to assist in the underwriting of insurance policies protect insurers from an applicant's misrepresentation protect consumers with guidelines regarding credit reporting and distribution assist an insurer in determining an applicant's creditworthiness, What kind of life insurance policy issued by a mutual insurer provides a return of divisible surplus? A) 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. Elizabeth is the beneficiary of a life insurance policy. 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". If xxx actually turns out to be 131313, what do you think of the claim? 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? His insurance agent told him the policy would be paid up if he reached age 100. Science Study Guide Questions. Typically, bilateral contracts involve an equal obligation or. If Sharon MUST obtain Mikes signature in order to change the beneficiary, what kind of beneficiary designations is this? A marathon is 42.2 kilometers. 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. An individual who removes the risk of losing money in the stock market by never purchasing stocks is said to be engaging in. discreet apparent implied express, Bob and Tom start a business. What guarantees that the statements supplied by an insurance applicant are true? A) fiduciary bond implied Which of the following best describes how you analyze a fiction text? 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? The amount of his disability income payments for an on-the-job injury may be reduced by. Business partners Vegetable B. A) Insurable interest 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? 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? 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. C) Business partners C) aleatory warranty 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 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? 2003-2023 Chegg Inc. All rights reserved. If thats the case, you dont have to worry anymore. C) Insurable interest conditions, Legal purpose is a term used in contract law meaning
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