Which Of The Following Best Describes A Conditional Insurance Contract. 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. The power given to an individual producer that is not specifically addressed in his/her contract is considered what type of authority? A) Unilateral contract D) conditions, The authority granted to a licensed producer is provided via the In this situation, who will receive Bob's policy proceeds? What does a life insurance policy guarantee to the stated beneficiary upon the death of the insured? A) Make whole In this situation, who will receive Bob's policy proceeds? the terms must be accepted or rejected in full Which of the following BEST describes a conditional insurance contract? 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. Events are those which cannot be controlled by either . A) Legal If she dies 15 years after the policy's inception date, how much will her beneficiary receive? A) One party is restored to the same financial position the party was in before the loss occurred. What types of life insurance are normally used for key employee indemnification? unilateral, Ambiguities in an insurance policy are always resolved in favor of the When does a life insurance policy typically become effective? The terms of the policy typically outline these conditions, which may include paying premiums on time and maintaining the insured property in good condition. What kind of policy is this? This rider is called a(n). B. Provide an opinion. Which course of action is the insurer entitled to when deliberate concealment is committed by the insured? Only the insurance company has legal obligations. Both partners are still married at the time of Bob's death. Which of the following is a requirement to attain an Utah resident producer license? The principle of insurable interest, in regards to a life insurance contract, is accurately described in which statement? a) a conditional acceptance allows the parties to negotiate the definite terms of the contract upon the completion of the contract. Which of the following products would allow him to accomplish this? After 15 years, the cash value has accumulated to $100,000 and the policy's face amount has become $600,000. C) Business partners B) the insurer's obligations are dependent upon certain acts of the insured individual Consideration clause A policyowner can receive a percentage payment of the death benefits prior to death by using what kind of contract? A minimum of 12 months after date of purchase, Insurance premium is determined by each of the following factors EXCEPT. 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? C) aleatory Notify me of follow-up comments by email. A.$1,656 A) Tom's spouse Ken is a producer who has obtained Consumer Informations Reports under false pretenses. Insurance interest does NOT occur in which of the following relationships? 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"? Under the Fair Credit Reporting Act, what is the maximum penalty that may be imposed in Ken? B) guarantee C) representation Law of Agency warranty guarantee representation collateral, there must be legal reasons for entering into the contract, Legal purpose is a term used in contract law meaning there must be an offer and acceptance the contract must be aleatory there must be legal reasons for entering into the contract the contract must be a contract of adhesion, In an insurance contract, the element that shows each party is giving something of value is called offer acceptance consideration purpose, What makes an insurance policy a unilateral contract? Intentional withholding of material facts that would affect an insurance policy's validity is called a(n). The present cash value of the policy equals $250,000. B) Unequal consideration Which of these legislation Acts is designed to protect consumers with guidelines regarding credit reporting and distribution? B) premium only 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? B) implied authority Who prosecutes crimes that involve the violation of insurance laws that fall under US Code 1033? An insurer's claim settlement practices are regulated by the Securities and Exchange Commission (SEC) National Association of Claims Adjusters (NACA) National Association of Insurance Commissioners (NAIC) State insurance departments, A life insurance company has transferred some of its risk to another insurer. What is the purpose for having an accelerated death benefit on a life insurance policy? D) Tom, The deeds and actions of a producer indicate what kind of authority? Which of these features are held exclusively by variable universal life insurance? In most insurance policies, the insurer is the only one who makes a legally binding promise to pay insured claims. Insurer's promise to pay benefits A paid premium Legal purpose Intent, 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, What is implied authority defined as? B) written contract d. a deductible stated in the policy's provision. Which of the following are the premium payments for a universal life policy NOT used for? A) Only the insured pays the premium Which military service exclusion clause would pay upon his death? What are an applicants statements concerning occupation, hobbies, and personal health history regarded 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? The insured, on the other hand, makes few, if any, legally binding promises to the insurer. b) a contract is an agreement enforceable at law. term, whole, and universal life insurance increasing term insurance joint, credit, and group life insurance adjustable, permanent, and limited-pay life insurance, 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. One-sided or unfair insurance contracts can, however, exist if they contain provisions that disproportionately benefit one party. Which of these is considered to be a disadvantage of owning this type of annuity? A) Express authority All of these are typically sources of underwriting information for life or health insurance EXCEPT. d) an agreement requires a definite offer and an indefinite acceptance. Post thoughts, events, experiences, and milestones, as you travel along the path that is uniquely yours. 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? It is the means by which one or more parties bind themselves to certain promises. A) State Insurance Departments What is created after policy proceeds are obtained in a lump sum and then immediately invested? The policies continue in force with no change. Rob recently died at age 60. Aleatory Contract: A contract type in which the parties involved do not have to perform a particular action until a specific event occurs. 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? Chapter3. Legal Concepts of the Insurance Contract Georgia Life Insurance Exam Ch. 2 questions & answers for quizzes and 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? A marathon is 42.2 kilometers. Which of these statements is true? Typically, bilateral contracts involve an equal obligation or. Death benefits Cash value Loading costs Separate account investments, Which policy feature makes a universal life policy different from a whole life policy? What kind of policy is this? Julie has a $100,000 30-year mortgage on her new home. there must be an offer and acceptance Zucchini is the best descriptive word. 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. aleatory Insurable interest Insurance exchanges Law of large numbers and risk pooling Population table data, People with higher loss exposure have the tendency to purchase insurance more often than those at average risk. 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 Only the insured can change the provisions 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 (D) Only one party is legally bound to the contract. The present cash value of the policy equals $250,000. implied B) Law of adhesion Insurance Cram Ch. 6 Flashcards | Chegg.com Authority given to handle claims and process payments 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 the insured is legally bound, 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 B) Parent and children Insurance Exam Flashcards | Chegg.com 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. To see this page as it is meant to appear, please enable your Javascript! _______ is the authority given to a producer to transact business on behalf of the insurer. The policy may be paid up early by using policy dividends. Because of this, an insurance contract is considered Which of the following is the best descriptive word? 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. Under a life insurance policy, what does the insuring clause state? there must be legal reasons for entering into the contract 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? Insurance contracts are unilateral contracts. ______ is NOT an element of a valid contract. Which of the following best describe the term definition. 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 Which of the following best describes a symbol. 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. y=f(x)=10x5x+1535if0x3if3
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