which of the following best describes a conditional insurance contractviva chicken plantains

B) the insurer's obligations are dependent upon certain acts of the insured individual Flashcards - Ch. 15 - Disability Income - FreezingBlue Which of these riders will pay a death benefit if the insureds spouse dies? A) express authority C) A contract where one party adheres to the terms of the contract A life insurance policy that is subject to a contract interest rate is referred to as. C) the authority to represent the insurer An individual who has a hobby racing cars once a month. Which market index is normally associated with an indexed annuitys rate of return? Naming a contingent beneficiary as all surviving children is described as which term? A) A contract that requires certain conditions or acts by the insured individual. A. 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? His insurance agent told him the policy would be paid up if he reached age 100. Describe the structure. If she dies 15 years after the policys inception date, how much will her beneficiary receive? The power given to an individual producer that is not specifically addressed in his/her contract is considered what type of authority? contain an offer and acceptance, In an insurance contract, the insurer is the only party legally obligated to perform. 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? Provide an opinion. Notify me of follow-up comments by email. (D) Only one party is legally bound to the contract. His insurance agent told him the policy would be paid up if he reached age 100. Which military service exclusion clause would pay upon his death? A) Sister and brother B) written contract Restoring an insured to the same condition as before a loss is an example of the principle of. Which Of The Following Statements About Personal Selling Is Correct? be signed and witnessed by an attorney Contestability clause, In order for a contract to be valid, it must Which of the following BEST describes a conditional insurance contract purpose, Insurable interest does NOT occur in which of the following relationships? To see this page as it is meant to appear, please enable your Javascript! How often must the Commissioner examine each domestic insurance company? 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. 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. Because you're already amazing. What would happen if a life insurance applicant is given a conditional receipt? D) Insurance producers, If a material warranty violation on the part of the insured is found, what recourse does an insurer have? When the principal gives the agent authority in writing, its referred to as, The terms must be accepted or rejected in full. 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? A) A contract that requires certain conditions or acts by the insured individual Which of the following would be a valid reason why a policy premium would be higher than the standard premium? Which of the following is a TRUE statement? 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 contract must be aleatory Log in for more information. It is a nonprofit organization that maintains underwriting information on applicants for life and health insurance. 30 seconds. Which of the following best describe the term definition C) Indemnity contract Aleatory Contract Definition, Use in Insurance Policies - Investopedia Ken is a producer who has obtained Consumer Informations Reports under false pretenses. 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 A conditional contract, also called a hypothetical contract, is a contract agreement that only requires performance once the delineated conditions are met. 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. Eventually, they retire and dissolve the business. Legal they are "take it or leave it" contracts. Are you looking for the correct answer to the question Which of the following BEST describes a conditional insurance contract?? A) underwriting Rob purchased a standard whole life policy with a $500,000 death benefit when we was age 30. The authority granted to a licensed producer is provided via the 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. D) Personal contract, The importance of a representation is demonstrated in what rule? C) consideration guarantee A) Only the insured pays the premium B) Parent and children Connect with others, with spontaneous photos and videos, and random live-streaming. B) Apparent C) statements made in the application and the premium C) Law of large numbers C) Implied 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. 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. A) Parties involved must be competent Law of large numbers U.S. Census Average mortality incidents Experience of morbidity, Insurance represents the process of risk selection avoidance transference assumption, Doctors pooling their money to cover malpractice exposures, An example of risk sharing would be Adding more security to a high-risk building Choosing not to invest in the stock market Doctors pooling their money to cover malpractice exposures Buying an insurance policy to cover potential liabilities, All of the following are examples of pure risk EXCEPT Losing money at a casino Injured while playing football Falling at a casino and breaking a hip Jewelry stolen during a home robbery, the terms must be accepted or rejected in full, Under a contract of adhesion, there is the potential for an unequal exchange of value the insurer's obligations are dependent upon certain acts of the insured individual the terms must be accepted or rejected in full only one party makes any kind of enforceable promise, According to life insurance contract law, insurable interest exists when any business relationship exists at the time of application at the time of death only when determined by a judge, In an insurance contract, the insurer is the only party legally obligated to perform. I hope you got the correct answer to your question. 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 these is considered to be a disadvantage of owning this type of annuity? 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. the terms must be accepted or rejected in full Policy loans are disallowed The premium payments will be tax deductible Pre-death distributions are typically taxable Withdrawals will be prohibited, When a whole life policy is surrendered, income taxes may be owed, All of these statements concerning whole life insurance are false EXCEPT Policyowner can take out a policy loan up to the face amount When a whole life policy is surrendered, income taxes may be owed Coverage is normally temporary The death benefit is not affected by outstanding loans, A life insurance policy which contains cash values that vary according to its investment performance of stocks is called Increasing Term Life Modified Whole Life Variable Whole Life Adjustable Whole Life, Which of these riders will pay a death benefit if the insured's spouse dies? B. Implied Rob recently died at age 60. A) warranty Parent and children Which of the following statements is true? One-sided or unfair insurance contracts can, however, exist if they contain provisions that disproportionately benefit one party. A) there is the potential for an unequal exchange of value This is called risk retention preexisting conditions law of large numbers adverse selection, What is known as the immediate specific event causing loss and giving rise to risk? Only the insured pays the premium Only the insured can change the provisions Only the insurer is legally bound Only the insured is legally bound, A professional liability for which producers can be sued for mistakes of putting a policy into effect is called fiduciary bond errors and omissions fiduciary trust errors and oversights, In order for a contract to be valid, it must be filed with the state be signed and witnessed by an attorney be in writing contain an offer and acceptance, 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". Insurance Exam Flashcards | Chegg.com 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. The present cash value of the policy equals $250,000. Use the binomial distribution to find P(x13)P(x \leq 13)P(x13) if the stain removal product's claim is correct. C) Insurable interest B) A paid premium Which of the following Best Describes a Conditional Insurance Contract Posted on April 19, 2022 by Ephori London To be enforceable, a contract must be concluded by the competent parties. Which of the following BEST describes a conditional insurance 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 underwriter, Life Insurance Policies - Provisions, Options, Fundamentals of Financial Management, Concise Edition, Micro Oneliners: Urinary Tract Infections (UT. D) misrepresentation, Which of the following is NOT required in the content of a policy? 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. C) Apparent authority 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? When the term insurance expires. 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. Which of these statements is true? C) fiduciary trust Which type of life insurance offers flexible premiums, a flexible death benefit, and the choice of how the cash value will be invested? ______ is NOT an element of a valid contract. Who is responsible for assembling the policy forms for insureds? Which of these statements is true? The type of annuity she is seeking is called. B) A contract that has the potential for the unequal exchange of consideration for both parties Which of these legislation Acts is designed to protect consumers with guidelines regarding credit reporting and distribution? A) insured Which of the following BEST describes a conditional insurance contract? A) estoppel A) Insurable interest Advertisement. D) Competent parties, Which of the following BEST describes a conditional insurance contract? An unintentional violation of Utah insurance law could lead a producer to a fine of up to _____ per violation. $2,406 The policies continue in force with no change. imposed authority, In an insurance contract, the element that shows each party is giving something of value is called What Benefit Does The Payor Clause On A Juvenile Life Policy Provide? 2003-2023 Chegg Inc. All rights reserved. What kind of policy is this? Which of the following BEST describes a conditional insurance contract? C) negotiation between the involved parties discreet apparent implied express, Bob and Tom start a business. which of the following best describes a conditional insurance contract? If the consumer price index had gone up 4%, how much may Ron increase the face value of the policy? C) Probability of loss In the case of an insurance contract, the contracting parties are the claimant and the insurer. C) Charge more premium fichoh. Sharon is the policyowner of a $500,000 life insurance policy. How soon can the benefit payments begin with a deferred annuity? Producers act in a(n) ________ capacity when holding insurance premiums. A) Insurability A rating from a rating service company, such as A.M. Best An illustration A sales presentation Direct mailing from an agency, Fraternal Benefit Society has each of the following characteristics EXCEPT Incorporated Without capital stock Exist For profit Exist for the benefit of its members, A plan in which an employer pays insurance benefits from a fund derived from the employer's current revenues is called A self-derived plan A multiple-employer plan A blanket plan A self-funded plan, An insurer's ability to make unpredictable payouts to policyowners is called investment values liquidity assets capital, Ken is a producer who has obtained Consumer Information Reports under false pretenses. Barry offers Chris his mountain cabin for the weekend to secure his order for his insurance business. It is not necessary for the parties to exchange unequal consideration in a conditional insurance contract. All of the following statements about Carl's coverage are correct. After a number of years, the policy's cash value accumulates to $50,000 and the face amount becomes $350,000. 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 Multiple-choice. B) Law of adhesion If thats the case, you dont have to worry anymore. A. C) there must be legal reasons for entering into the contract Ron has a life insurance policy with a face value of $100,000 and a cost of living rider. Insurers must maintain files of all documents used for solicitation for ____ year(s) after the last authorizes date of use. A) definitions If the annuitant dies before the annuity start date, The premiums paid plus interest earned will be given to the beneficiary, Anyone who makes a fraudulent statement on an insurance application in order to obtain benefits from an insurance company. A type of group that has a constitution and bylaws and has been organized for purposes other than obtaining insurance is called a(n). 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 Administrative actions taken against a producer must be reported to the Commissioner within ____ days. Which policy requires an agent to register with the National Association of Securities Dealers (NASD) before selling? definitions If the insured dies at any time during the 5 years, his beneficiary will receive the policy's face value. B) Contract of adhesion 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?

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