Adjustable life insurance Decreasing term insurance Increasing term insurance Modified life insurance, A spouse and child can be added to the primary insured's coverage as what kind of rider? A life insurance claim which involves a per capita distribution of policy proceeds would be payable to the. Sharing commissions with a producer licensed in the same line of business. If the consumer price index had gone up 4%, how much may Ron increase the face value of the policy? The insurers obligation to pay a death benefit upon an approved death claim. Question. D) Tom, The deeds and actions of a producer indicate what kind of authority? What is the advantage of adding this rider? 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? 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. C) the contract has been prepared by one party (the insurance company) with no negotiation between the applicant and the insurer C) aleatory Which of the following describes a person who is NOT acceptable by an insurer at standard rates because of health history, occupation, or hobbies? B) A contract that has the potential for the unequal exchange of consideration for both parties B) conditional Log in for more information. Both partners are still married at the time of Bob's death. A conditional contract, also called a hypothetical contract, is a contract agreement that only requires performance once the delineated conditions are met. 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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. C.$2,113 B) premium only claim forms Waiver of premium Juvenile waiver Guaranteed insurability Payor benefit, Which of the following is a reinstatement condition? representation After 15 years, the cash value has accumulated to $100,000 and the policy's face amount has become $600,000. Required fields are marked *. Loan against the cash value Policy withdrawal Policy dividend Death benefit, A business will typically use which type of life insurance to cover their employees? warranty there is the potential for an unequal exchange of value Express 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 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. Which of the following BEST describes a conditional insurance contract? A) Sue the insured Preferred risk policies with reduced premiums are issued by insurance companies because the insured has, Better than average mortality or morbidity experience. B) Rescind the policy A) Parties involved in the contract C) the terms must be accepted or rejected in full D) Legal Purpose, Which of the following is present when an applicant stands to lose value if the insured dies? C) Implied What Benefit Does The Payor Clause On A Juvenile Life Policy Provide? Where would policy proceeds be paid if both the insured and primary beneficiary were killed in the same accident? weegy. C) promises made if the insured lives beyond the 5 years, no benefits are payable. The authority granted to a licensed producer is provided via the How often must the Commissioner examine each domestic insurance company? 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 B) Law of adhesion insurer What would happen if a life insurance applicant is given a conditional receipt? Which of the following is a reinstatement condition? Her son, Mike, is the beneficiary. Shirley has a $500,000 10-year-non-renewable level term life policy. implied authority express authority The present cash value of the policy equals $250,000. A contract that requires certain conditions or acts by the insured individual Which of these is considered to be a Living Benefit option in a life insurance policy? B) Period to which the coverage exists B) other insurance D) the authority to add provisions to a contract, C) the authority to represent the insurer, Which of the following contracts is defined as "one that restores an injured party to the condition that was present before the loss"? 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? 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. performance is conditioned upon a future occurrence. Which of the following would be considered an underwriting duty of an agent? Business partners A) Insurer's promise to pay benefits Authority given in writing to an agent in the agency agreement 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. be filed with the state B) errors and omissions What is the name of the provision which states that a copy of the application must be attached to the policy when issued? C) A contract where one party adheres to the terms of the contract Vegetable B. 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. Use the binomial distribution to find P(x13)P(x \leq 13)P(x13) if the stain removal product's claim is correct. Death benefits Cash value Loading costs Separate account investments, Which policy feature makes a universal life policy different from a whole life policy? Which of the following statements is true? All of the following statements about Carl's coverage are correct. A) there is an element of chance and potential for unequal exchange of value or consideration for both parties Pay owns a 20-pay life policy with a paid-up dividend option. Tom's spouse Bob's estate Bob's spouse Tom, Which contract element is insurable interest a component of? Please check below to know the answer. B) concealment Which of the following is the best descriptive word? A) producer's apparent authority WINDOWPANE is the live-streaming app for sharing your life as it happens, without filters, editing, or anything fake. collateral, What is implied authority defined as? Child term rider Payor rider Family maintenance rider Family income rider, What happens to the coverage under a children's term rider when that child reaches a certain specified age? Insurance interest does NOT occur in which of the following relationships? D) Business owner and business client, Under a contract of adhesion, Because of this, an insurance contract is considered Who prosecutes crimes that involve the violation of insurance laws that fall under US Code 1033? Risk Hazard Indemnity Peril, Insurance companies determine risk exposure by which of the following? $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? C) representation Peter has a policy where 80% to 90% of the premium is invested in traditional fixed income securities and the remainder of the premium is invested in contracts tied to a stipulated stock index. In order to maintain coverage and make a successful claim, its crucial that policyholders read and understand their insurance contract carefully. Legal D) purpose, Which principle is accurately described with the statement "Insureds are entitled to recover an amount NOT greater than the amount of their loss"? 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. discreet apparent implied express, Bob and Tom start a business. Because of this, an insurance contract is considered voidable conditional aleatory unilateral, Who is responsible for assembling the policy forms for insureds? Premiums paid plus interest earned is returned to the beneficiary. Which of the following best describes the MIB? other insurance Which type of multiple protection policy pays on the death of the last person? 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. What types of life insurance are normally used for key employee indemnification? 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 C) Apparent authority 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? Sorry, you have Javascript Disabled! d. a deductible stated in the policy's provision. Which Of The Following Statements About Personal Selling Is Correct? C) Charge more premium voidable Insurance contracts are unilateral contracts. 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? This legal agreement requires prior performance of another agreement or clause in order to be enforceable. The terms of the policy typically outline these conditions . A policyowner can receive a percentage payment of the death benefits prior to death by using what kind of contract? 2 See answers promises made Julie has a $100,000 30-year mortgage on her new home. written contract (B) Both parties adhere to the contract. Which of the following BEST describes a conditional insurance contract? apparent The policies continue in force with no change. 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 conditional acceptance allows the parties to negotiate the definite terms of the contract upon the completion of the 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? Law of Agency 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. Under a life insurance policy, what does the insuring clause state? A) Express Asked 10/6/2017 7:04:21 AM. 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. Ron has a life insurance policy with a face value of $100,000 and a cost of living rider. C) Authority given to handle claims and process payments Premium clause Which of the following statements correctly describes a contract of indemnity? C) Materiality of concealment In order to maintain coverage and make a successful claim, its crucial that policyholders read and understand their insurance contract carefully. In most cases, the insured is. All of these are typically sources of underwriting information for life or health insurance EXCEPT. contain an offer and acceptance, In an insurance contract, the insurer is the only party legally obligated to perform. A) Parties involved must be competent How could a company manager use a process cost summary to determine if the program to reduce water usage is successful? Lisa has recently bought a fixed annuity. Coverage decreases automatically Coverage increases automatically Coverage remains as long as proof of insurability is provided Coverage is eliminated, Joe has a life insurance policy that has a face amount of $300,000. there must be an offer and acceptance 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. 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. Which of the following is an annuity that is linked to a market-related index? 0 Answers/Comments. C) Contract must have a legal purpose both parties consent to the contract. A life insurance policyowner does NOT have the right to, Fixed annuities provide each of the following EXCEPT. 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. D. $2,863. Eventually, they retire and dissolve the business. Andy the annuitant dies before the annuity start date. B) Contract of adhesion What guarantees that the statements supplied by an insurance applicant are true? During periods of inflation, annuitants will experience a decrease in purchasing power of their payments. All of the following are examples of a Business Continuation Plan EXCEPT. D) Conditional, Which of the following is NOT a requirement of a contract? C) Bob's spouse B) guarantee Zucchini is the best descriptive word. Expert answered| selymi |Points 23307|. they are "take it or leave it" contracts. B. D) Evident authority, Which of the following is an example of the insured's consideration? A person who is a nonsmoker, of average weight, and in excellent health would most likely be in which risk classification? Bob dies 12 months later. The face amount and premium will remain constant over the 10-year period. This rider is called a(n). In this situation, who will receive Bob's policy proceeds? 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 In this situation, who will receive Bob's policy proceeds? Naming a contingent beneficiary as all surviving children is described as which term? 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)? 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 B) Parent and children 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 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. B) Equal consideration is required between the involved parties Which of the following does a producer NOT have a fiduciary responsibility to? which of the following best describes a conditional insurance contract? Competent parties ______ is NOT an element of a valid contract. Which military service exclusion clause would pay upon his death? 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. Only the insured pays the premium Which of these would NOT be an unfair claims practice? Accelerated death benefit rider Waiver of premium rider Extended term option Decreasing term insurance. Conditional, Under a contract of adhesion, C) Law of Agency Which of the following best describe the term definition. A) express authority Apparent 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. A) Insurability Sharon is the policyowner of a $500,000 life insurance policy. 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". The power given to an individual producer that is not specifically addressed in his/her contract is considered what type of authority? __________. C) Business partners The death benefit would be $250,000 $750,000 $375,000 $500,000, What does the word "level" in Level Term describe? Barry offers Chris his mountain cabin for the weekend to secure his order for his insurance business. D) Consideration clause, When the principal gives the agent authority in writing, it's referred to as be in writing 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. The gap between the total death benefit and the policys cash value. Anheuser-Busch InBev is trying to reduce its water usage. which of the following best describes a conditional insurance contract? His insurance agent told him the policy would be paid up if he reached age 100. b. benefits paid under workers compensation. If she dies 15 years after the policys inception date, how much will her beneficiary receive? Which of the following does a life insurance policy summary normally include? 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. be signed and witnessed by an attorney underwriter, Life Insurance Policies - Provisions, Options, Fundamentals of Financial Management, Concise Edition, Micro Oneliners: Urinary Tract Infections (UT. 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? 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. If Sharon MUST obtain Mikes signature in order to change the beneficiary, what kind of beneficiary designations is this? Which of these is considered to be a Living Benefit option in a life insurance policy? Adjustable life policy Modified life policy Endowment policy Universal life policy, How are survivorship life insurance policies helpful in estate planning? Which type of life insurance offers flexible premiums, a flexible death benefit, and the choice of how the cash value will be invested? B) Apparent 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? D) Principal Capacity, A unilateral contract is one in which D) conditions, The authority granted to a licensed producer is provided via the _______ is the authority given to a producer to transact business on behalf of the insurer. B) issuance of the policy Science Study Guide Questions. Which of these statements regarding the annuitant is CORRECT? A.$1,656 What does a life insurance policy guarantee to the stated beneficiary upon the death of the insured? Which course of action is the insurer entitled to when deliberate concealment is committed by the insured? guarantee C) Consideration What does the word level in Level Term describe? 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 The insured does not meet established underwriting requirements, The type of multiple protection coverage that pays on the death of the last person is called a(n). A minimum of 12 months after date of purchase, Insurance premium is determined by each of the following factors EXCEPT. Before using an assumed name in Utah, a producer MUST, Maria would like an annuity that provides a guaranteed accumulation or payout. Which of the following statements is TRUE? Food C. Plant D. Zucchini. the contract must be aleatory insured After first premium is paid, the face amount may be available to the beneficiary, Level premium term life insurance policies, Have premiums that are averaged over the policy period, A policyowner can receive an immediate payment before the insured dies by using a(n), Matt is applying for life insurance and requests a double indemnity rider. A) offer and acceptance 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. the policy provides a straight, level $100,000 of coverage for 5 years. A marathon is 42.2 kilometers. 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). With a life insurance contract, the insurer binds itself to pay a certain sum upon the death of the insured. B) the unwritten authority that the agent is assumed to have The policies continue in force with no change. Orissa purchases a 10-year level term life insurance policy that has a death benefit of $200,000. B) acceptance B) written contract Waiver Exclusion Rider Provision, The double indemnity provision in a life insurance policy pertains to an insured's death caused by a(n) sickness suicide accident war, An insurer will accept a premium from the insured and continue the coverage in full force as though it was NOT late during which time period? C) consideration Principal Capacity, All of the following are elements of an insurance policy EXCEPT definitions 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?
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