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Only the insured can change the provisions 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? Sorry, you have Javascript Disabled! Flashcards - Ch. 15 - Disability Income - FreezingBlue Before using an assumed name in Utah, a producer MUST, Maria would like an annuity that provides a guaranteed accumulation or payout. B) A contract that has the potential for the unequal exchange of consideration for both parties 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) Both parties exchange goods of equal value. C) Implied Contestability clause, In order for a contract to be valid, it must Chapter 3 Legal Concepts of the Insurance Contract - Quizlet Chapter 1 - Completing the application, underwriting, and - Chegg promises made Offering payment of approved claims within 30 days after affirming liability. Dependent term Guaranteed insurability Primary term Family term, Which type of life insurance offers flexible premiums, a flexible death benefit, and the choice of how the cash value will be invested? A policyowner can receive a percentage payment of the death benefits prior to death by using what kind of contract? Which of the following statements is TRUE? 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. A) estoppel C) Authority given to handle claims and process payments C) fiduciary trust D) collateral, Express power given to an agent in an agency agreement is C) Consideration the policy provides a straight, level $100,000 of coverage for 5 years. Principal Capacity, All of the following are elements of an insurance policy EXCEPT aleatory D) Tom, The deeds and actions of a producer indicate what kind of authority? Bob dies 12 months later. 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. 0 Answers/Comments. B. Barbaras policy includes a rider which allows her to purchase additional insurance at specific dates or events without evidence of insurability. 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. discreet apparent implied express, Bob and Tom start a business. 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. The two major actions required for a policyowner to comply with the Reinstatement Clause are, Provide evidence of insurability, pay past due premiums, The term which describes the fact that both parties of a contract may NOT receive the same value is referred to as. The principle of insurable interest, in regards to a life insurance contract, is accurately described in which statement? Georgia Life Insurance Exam Ch. 2 questions & answers for quizzes and Which of these legislation Acts is designed to protect consumers with guidelines regarding credit reporting and distribution? How often must the Commissioner examine each domestic insurance company? Which of the following BEST describes a conditional insurance contract? The authority granted to a licensed producer is provided via the 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? purpose, Insurable interest does NOT occur in which of the following relationships? Administrative actions taken against a producer must be reported to the Commissioner within ____ days. 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? Which of the following would be an act of Unfair Discrimination by an insurer? (B) Both parties adhere to the contract. B) at the time of application C) Competent parties Who assumes the investment risk with a fixed annuity contract? B) Implied authority Options 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 A contract that requires certain conditions or acts by the insured individual. B. 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? express authority Plot this function and determine if she is ready to attempt the Bluenose Marathon. legal reserve, What are an applicant's statements concerning occupation, hobbies, and personal health history regarded as? The policies continue in force with no change. A) Legal If xxx actually turns out to be 131313, what do you think of the claim? In order to maintain coverage and make a successful claim, its crucial that policyholders read and understand their insurance contract carefully. 3. Which of the following policies does NOT build cash value? The Fair Credit Reporting Acts main purpose is to, Protect consumers with guidelines regarding credit reporting and distribution, A whole life insurance policy accumulated cash value that becomes, The policy loan value which the insured may borrow against. In exchange, the policyowner pays premiums. Law of Agency Adjustable life policy Variable universal policy Universal policy Modified whole life policy, A securities license is required for a life insurance producer to sell modified life insurance Modified Endowment Contracts (MEC) variable life insurance universal life insurance, The shorter the payment period, the higher the premium, The statement which best describes the relationship between the premiums of a whole life policy and the premium payment period is The shorter the payment period, the lower the premium The longer the payment period, the higher the premium The shorter the payment period, the higher the premium The payment period has no affect on the premium payment, Policyowner has the right to select the investment which will provide the greatest return, Variable life insurance and Universal life insurance are very similar. Which of the following is the best descriptive word? A - Weegy What is the difference between insurance condition and warranty? 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. B) conditional A) Sister and brother C) at the time of death B) Law of adhesion Loans obtained by a policyowner against the cash value of a life insurance policy. which of the following best describes a conditional insurance contract? Andy the annuitant dies before the annuity start date. C) Charge more premium D) Business owner and business client, Under a contract of adhesion, If she dies 15 years after the policys inception date, how much will her beneficiary receive? A) fiduciary bond Authority given to handle claims and process payments She is receiving the death benefit in payments of $10,000 per month until the principal and interest has been paid out. An individual who removes the risk of losing money in the stock market by never purchasing stocks is said to be engaging in. C) Insurable interest 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. Insurance Multiple-Choice Questions Flashcards Preview - Brainscape B) Apparent Bob dies 12 months later. there is the potential for an unequal exchange of value Please check below to know the answer. 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? Conditional, Under a contract of adhesion, Are you looking for the correct answer to the question Which of the following BEST describes a conditional insurance contract?? Because of this, an insurance contract is considered voidable conditional aleatory unilateral, Who is responsible for assembling the policy forms for insureds? Only the insurance company has legal obligations. Term insurance is appropriate for someone who, Seeks temporary protection and lower premiums. underwriter, Life Insurance Policies - Provisions, Options, Fundamentals of Financial Management, Concise Edition, Micro Oneliners: Urinary Tract Infections (UT. Which of the following best defines diction? A. simile B - Weegy be filed with the state What are conditions in an insurance policy? Increasing Term Life policy Nonparticipating policy Modified Whole Life policy Universal Life policy, What is the automatic continuance of insurance coverage referred to as? C) there must be legal reasons for entering into the contract representation D) unilateral, Who is responsible for assembling the policy forms for insureds? 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? Completing all applications and collecting initial premiums. 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? Which type of life insurance offers flexible premiums, a flexible death benefit, and the choice of how the cash value will be invested? 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. 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? The terms of the policy typically outline these conditions . Zucchini is the best descriptive word. D) Principal Capacity, A unilateral contract is one in which A) producer's apparent authority B) Indemnity Which of the following is CORRECT regarding the death benefit amount? 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. 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. B) A contract that has the potential for the unequal exchange of consideration for both parties. What Benefit Does The Payor Clause On A Juvenile Life Policy Provide? To see this page as it is meant to appear, please enable your Javascript! D) Competent parties, Which of the following BEST describes a conditional insurance contract? A type of group that has a constitution and bylaws and has been organized for purposes other than obtaining insurance is called a(n). For a trip to the hospital, Evan Appleton paid $1,656 in hospital charges, a$750 insurance deductible, and a $457 co-payment. both parties consent to 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 An example of an unfair claims practice would be, Failing to effectuate prompt, fair, and fair equitable settlements of a claim. 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? Conditional Contracts: Everything You Need to Know - UpCounsel A bilateral contract is an agreement between two parties in which each side agrees to fulfill their side of the bargain. Which of the following statements correctly describes a contract of indemnity? 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. In which form of corporate financing is the investor also an owner? Write a summary of the main ideas. Which scenario would most life insurance policies exclude coverage for? A life insurance policyowner does NOT have the right to, Fixed annuities provide each of the following EXCEPT. 2003-2023 Chegg Inc. All rights reserved. The terms and conditions of insurance contracts should be carefully reviewed by policyholders before signing. If threats or force is used to affect an insurance transaction, the unfair trade practice of __________ has been committed. D) Risk insured against, A professional liability for which producers can be sued for mistakes of putting a policy into effect is called After being properly appointed by the insurer. What is the meaning of par value of stock with respect to the corporate form of organization? Business partners His insurance agent told him the policy would be paid up if he reached age 100. 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 she dies 15 years after the policy's inception date, how much will her beneficiary receive? How often must an insurance producers license in Utah be renewed? D) underwriter, Reasonably necessary acts that an agent must perform for carrying out his/her expressly authorized duties are covered by an agent's B) written contract One-sided or unfair insurance contracts can, however, exist if they contain provisions that disproportionately benefit one party. voidable Which of the following statements is true? 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? A minimum of 12 months after date of purchase, Insurance premium is determined by each of the following factors EXCEPT. What is a corridor in relation to a Universal Life insurance policy? In order for a contract to be valid, it must. The terms of the policy typically outline these conditions, which may include paying premiums on time and maintaining the insured property in good condition. The power given to an individual producer that is not specifically addressed in his/her contract is considered what type of authority? D) Terminate the agent, Insurable interest does NOT occur in which of the following relationships? An insurance applicant with a below-average likelihood of loss is typically considered to be a. Her son, Mike, is the beneficiary. 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? which of the following best describes a conditional insurance contract Which military service exclusion clause would pay upon his death? Rob recently died at age 60. A paid premium Notify me of follow-up comments by email. A marathon is 42.2 kilometers. Assume that the product will be tested on 202020 randomly selected stained garments, and let xxx denote the number of these garments from which the stains will be completely removed. Within how many days must a licensee notify the Commissioner of a change in address? The insurers obligation to pay a death benefit upon an approved death claim. a) a conditional acceptance allows the parties to negotiate the definite terms of the contract upon the completion of the contract. producer's apparent authority Accelerated death benefit rider Waiver of premium rider Extended term option Decreasing term insurance. 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 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? Authority given in writing to an agent in the agency agreement 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 C) Aleatory 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. C.$2,113 See answers. apparent authority Which of the following BEST describes a conditional insurance contract. The terms of the policy typically outline these conditions, which may include paying premiums on time and maintaining the insured property in good condition. Which of the following best describes a conditional insurance contract Which of the following is true of the law of contracts? According to the Affordable Care Act (ACA), insurers can no longer deny health coverage due to pre-existing conditions unless that plan is a (n) Grandfathered plan Accident plan Individual plan Group plan Grandfathered plan A) there is the potential for an unequal exchange of value Which of these statements is true? Which of the following BEST describes a conditional insurance contract? 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 Cram Ch. 6 Flashcards | Chegg.com Competent parties Offer and acceptance Consideration Legal purpose, What are an applicant's statements concerning occupation, hobbies, and personal health history regarded as? D) Personal contract, The importance of a representation is demonstrated in what rule? Who is responsible for assembling the policy forms for insureds? underwriting 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 Which course of action is the insurer entitled to when deliberate concealment is committed by the insured? Premiums paid plus interest earned is returned to the beneficiary. Which of the following best describes how you analyze a fiction text In this situation, who will receive Bob's policy proceeds? In this situation, who will receive Bob's policy proceeds? Provide an opinion. D) errors and oversights, In an insurance contract, the insurer is the only party legally obligated to perform. 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? Sister and brother This is also known as a non-negotiable insurance contract, or an automatic contract. Which of the following Best Describes a Conditional Insurance Contract discreet Log in for more information. 2003-2023 Chegg Inc. All rights reserved. Utah requires that an insurance producer must complete ___ hour(s) of continuing education on the subject of law and ethics every reporting period. Which of the following is an example of the insureds consideration? Consideration 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 does a life insurance policy summary normally include? If Mike dies first, the policy proceeds will no longer provide insurance protection will go to Mike's estate will be divided by probate will not be paid until the last brother dies, The gap between the total death benefit and the policy's cash value, What is a corridor in relation to a Universal Life insurance policy? After 15 years, the cash value has accumulated to $100,000 and the policy's face amount has become $600,000. Q. Active Status Results Leave, A provision that allows a policyowner to temporarily give up ownership rights to secure a loan is called a(n) automatic premium loan nonforfeiture option collateral assignment irrevocable assignment, Period of time after the premium is due but the policy remains in force, What is an insurance policy's grace period?