which of the following best describes a conditional insurance contract

Only the insurer is legally bound the contract must be aleatory C) Law of Agency 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 Which of the following best describes a symbol. Which of the following products would allow him to accomplish this? 3. Provide an opinion. Because of this, an insurance contract is considered Dual Life insurance Joint Life insurance Last Survivor Life insurance Shared Life insurance, Index whole life insurance contains a securities component that acts as a(n) hedge against inflation premium stabilizer means to lowering taxes on earnings incentive to purchase more coverage, Which of the following are the premium payments for a Universal life policy NOT used for? At what point may a producer sell insurance for an insurer? unilateral, Ambiguities in an insurance policy are always resolved in favor of the C) insurer 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? Competent parties imposed authority, In an insurance contract, the element that shows each party is giving something of value is called B) Consideration C) claim forms Which contract element is insurable interest a component of? C) there must be legal reasons for entering into the contract D) misrepresentation, Which of the following is NOT required in the content of a policy? Which of the following is true of the law of contracts? The insurer assuming the risk is called the mutual insurer reinsurer reciprocal insurer participating insurer, Karen is a producer who has obtained personal information about a client without having a legitimate reason to do so. Ron has a life insurance policy with a face value of $100,000 and a cost of living rider. 2003-2023 Chegg Inc. All rights reserved. What does a life insurance policy guarantee to the stated beneficiary upon the death of the insured? C) Law of large numbers D. $2,863. In this situation, who will receive Bob's policy proceeds? After 15 years, the cash value has accumulated to $100,000 and the policy's face amount has become $600,000. 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. B) Only the insured can change the provisions 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? Death benefits Cash value Loading costs Separate account investments, Which policy feature makes a universal life policy different from a whole life policy? the insurer's obligations are dependent upon certain acts of the insured individual 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? Which type of life insurance policy is this? Which Of The Following Statements About Personal Selling Is Correct? (C) Both parties exchange goods of equal value. D) Insurance producers, If a material warranty violation on the part of the insured is found, what recourse does an insurer have? B) A contract that has the potential for the unequal exchange of consideration for both parties D) Offer and acceptance must be involved, B) Equal consideration is required between the involved parties, A contract requires fichoh. All of the following statements about Carl's coverage are correct. 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 they are "take it or leave it" contracts. A) fiduciary bond Your email address will not be published. A) Sue the insured D) collateral, Express power given to an agent in an agency agreement is 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? Which of these is considered to be a disadvantage of owning this type of annuity? The face amount and premium will remain constant over the 10-year period. A non-contributory health insurance plan helps the insurer avoid. insurer C) fiduciary trust 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 $2,406 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. What kind of policy is this? What is created after policy proceeds are obtained in a lump sum and then immediately invested? 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. Under the McCarran-Ferguson Act, what is the minimum penalty for this? Which of these features are held exclusively by variable universal life insurance? 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? C) The insured and the insurer contribute equally to the contract. 0 Answers/Comments. Which of these legislation Acts is designed to protect consumers with guidelines regarding credit reporting and distribution? The amount of his disability income payments for an on-the-job injury may be reduced by. 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? B) Period to which the coverage exists Notify me of follow-up comments by email. Accelerated death benefit An example of an unfair claims practice would be D) conditions, The authority granted to a licensed producer is provided via the Which of these statements is true? Shirley has a $500,000 10-year-non-renewable level term life policy. A) estoppel Eventually, they retire and dissolve the business. B) issuance of the policy If the insured dies at any time during the 5 years, his beneficiary will receive the policy's face value. A) implied authority C) A contract where one party adheres to the terms of the contract B) Law of adhesion Which of the following BEST describes a conditional insurance contract? The insurers obligation to pay a death benefit upon an approved death claim. To see this page as it is meant to appear, please enable your Javascript! When handling premiums for an insured, an agent is acting in which capacity? See answers. C) Insurance carriers How many days is a temporary producers license valid? A person who is a nonsmoker, of average weight, and in excellent health would most likely be in which risk classification? A life insurance claim which involves a per capita distribution of policy proceeds would be payable to the. c. income earned by Pat's spouse. Authority given in writing to an agent in the agency agreement A) Make whole Connect the text to your own experiences. C) A contract where one party "adheres" to the terms of 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. 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. When the principal gives the agent authority in writing, its referred to as, The terms must be accepted or rejected in full. D) unilateral, Who is responsible for assembling the policy forms for insureds? A) producer's apparent authority 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 D) Only the insured is legally bound, Bob and Tom start a business. Corporations, like all firms, can raise money by borrowing from banks and other lending institutions. Rob recently died at age 60. both parties consent to the contract. Which of the following BEST describes a conditional insurance contract. Which of these statements is true? Which option was chosen? Adhesion clause When does a life insurance policy typically become effective? guarantee 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? D) Evident authority, Which of the following is an example of the insured's consideration? The death benefit would be $250,000 $750,000 $375,000 $500,000, What does the word "level" in Level Term describe? 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) 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. Which of the following is the best descriptive word? B) Unequal consideration This is also known as a non-negotiable insurance contract, or an automatic contract. the contract is voidable upon proof of fraud. Which scenario would most life insurance policies exclude coverage for? Variable life insurance and Universal life insurance are very similar. A) definitions 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 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? express, ______ is NOT an element of a valid contract. Competent parties Offer and acceptance Consideration Legal purpose, What are an applicant's statements concerning occupation, hobbies, and personal health history regarded as? Use the binomial distribution to find P(x13)P(x \leq 13)P(x13) if the stain removal product's claim is correct. Pay owns a 20-pay life policy with a paid-up dividend option. 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 (D) Only one party is legally bound to the contract. 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? A) A contract that requires certain conditions or acts by the insured individual B) the insurer's obligations are dependent upon certain acts of the insured individual 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) Business owner and business client, Under a contract of adhesion, 30 seconds. A) offer implied authority Restoring an insured to the same condition as before a loss is an example of the principle of. Which of the following would be considered an underwriting duty of an agent? B. A) Parties involved in the contract Under the Fair Credit Reporting Act, what is the maximum penalty that may be imposed in Ken? When the term insurance expires. 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. Which of the following BEST describes a conditional insurance contract? 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 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 underwriting The policies continue in force with no change. Increasing Term Life policy Nonparticipating policy Modified Whole Life policy Universal Life policy, What is the automatic continuance of insurance coverage referred to as? D) Conditional, Which of the following is NOT a requirement of a contract? 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? The policy may be paid up early by using policy dividends. B) at the time of application Post thoughts, events, experiences, and milestones, as you travel along the path that is uniquely yours. Ken is a producer who has obtained Consumer Informations Reports under false pretenses. 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. For a trip to the hospital, Evan Appleton paid $1,656 in hospital charges, a$750 insurance deductible, and a $457 co-payment. What is the purpose for having an accelerated death benefit on a life insurance policy? 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? However, corporations also can raise money by selling bonds or issuing additional shares of stock. Orissa purchases a 10-year level term life insurance policy that has a death benefit of $200,000. His insurance agent told him the policy would be paid up if he reached age 100. D) A contract where only one party makes any kind of enforceable contract, A) A contract that requires certain conditions or acts by the insured individual, All of the following are elements of an insurance policy EXCEPT Events are those which cannot be controlled by either . 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. In order to maintain coverage and make a successful claim, its crucial that policyholders read and understand their insurance contract carefully. Which of these factors is NOT taken into account when determining an applicants life insurance needs? Which of the following does a producer NOT have a fiduciary responsibility to? The gap between the total death benefit and the policy's cash value The gap between when a claim is filed and when the death benefit is received The amount of interest that has accumulated in the policy's cash value The point in time when the policy's cash value reaches $0, Rob purchased a standard whole life policy with a $500,000 death benefit when he was age 30. producer Dorian exercises a nonforfeiture option by using his life policys cash value to purchase an extended term insurance option. 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 terms of the policy typically outline these conditions, which may include paying premiums on time and maintaining the insured property in good condition. be signed and witnessed by an attorney The terms of the policy typically outline these conditions, which may include paying premiums on time and maintaining the insured property in good condition. B) Apparent Which of the following statements is true? The power given to an individual producer that is not specifically addressed in his/her contract is considered what type of authority? 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? What does the word level in Level Term describe? If she dies 15 years after the policy's inception date, how much will her beneficiary receive? consideration Because insurance premiums are tax-deductible Because dividends are already subject to capital gains Because dividends are payable directly to the policyholder Because dividends are considered to be a return of premium, A type of insurer that is owned by its policyowners is called domestic mutual stock in-house, What is considered to be the primary reason for buying life insurance? C) Materiality of concealment What Benefit Does The Payor Clause On A Juvenile Life Policy Provide? 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". What is this an example of? An insurance applicant with a below-average likelihood of loss is typically considered to be a. 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? A bilateral contract is an agreement between two parties in which each side agrees to fulfill their side of the bargain. C) Implied which of the following best describes a conditional insurance contract? In the case of an insurance contract, the contracting parties are the claimant and the insurer. The policy may be paid up early by using accumulated cash values The policy may be paid up early by using policy dividends The policy's premiums will increase after 20 years The policy's cash values steadily decrease after 20 years, the policy would be payable, minus the premium amount, If an insured dies during the grace period with no premiums paid the policy would be payable, minus the premium amount the policy would be payable only after the beneficiary makes past due premium payment all past premiums will be refunded with interest the claim would be denied, In what part of an insurance policy are policy benefits found? 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). Which of the following BEST describes a conditional insurance contract? The policy automatically converts to whole life after the 10-year period The face amount will remain constant and the premium will increase over the 10-year period The premium will remain constant and the face amount will increase over the 10-year period The face amount and premium will remain constant over the 10-year period, will no longer provide insurance protection, Shawn, Mike, and Dave are brothers who have a $100,000 "first to die" joint life policy covering all three of their lives. A policyowner can receive a percentage payment of the death benefits prior to death by using what kind of contract? Describe the structure. Which of these is considered to be a Living Benefit option in a life insurance policy? 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+15if3houses for rent in lafayette, georgia on craigslist,