B. 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 How does life insurance create an immediate estate? Which of the following statements is true? Intentional withholding of material facts that would affect an insurance policy's validity is called a(n). be filed with the state Which Of The Following Best Describes A Conditional Insurance Contract A minimum of 12 months after date of purchase, Insurance premium is determined by each of the following factors EXCEPT. 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. B) the insurer's obligations are dependent upon certain acts of the insured individual A Modified Endowment Contract (MEC) is best described as, A life insurance contract which accumulated cash values higher than the IRS will allow, Doctors pooling their money to cover malpractice exposures, The free-look provision gives the policyowner, The right to return the policy for a full refund within a specified number of days. A) Express authority 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? C) fiduciary trust Which of the following BEST describes a conditional insurance contract? 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). What does a life insurance policy guarantee to the stated beneficiary upon the death of the insured? What is a corridor in relation to a Universal Life insurance policy? This legal agreement requires prior performance of another agreement or clause in order to be enforceable. When the principal gives the agent authority in writing, its referred to as, The terms must be accepted or rejected in full. The authority granted to a licensed producer is provided via the there must be legal reasons for entering into the contract The policy may be paid up early by using policy dividends. Loans obtained by a policyowner against the cash value of a life insurance policy. 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? Competent parties 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? be in writing 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? Only the insurer is legally bound Bob dies 12 months later. Accelerated death benefit rider Waiver of premium rider Extended term option Decreasing term insurance. Advertisement. (A) Both parties to the contract are bound to the terms. Offering payment of approved claims within 30 days after affirming liability. Because you're already amazing. 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"? 2. 2003-2023 Chegg Inc. All rights reserved. Insurer's promise to pay benefits Rob recently died at age 60. She would like to borrow $15,000 against the cash value. B) Rescind the policy Are you looking for the correct answer to the question Which of the following BEST describes a conditional insurance contract?? The power given to an individual producer that is not specifically addressed in his/her contract is considered what type of authority? Only the insurance company has legal obligations. 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 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. After a number of years, the policy's cash value accumulates to $50,000 and the face amount becomes $350,000. apparent 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. Which of these legislation Acts is designed to protect consumers with guidelines regarding credit reporting and distribution? Which of these riders will pay a death benefit if the insureds spouse dies? Under the Fair Credit Reporting Act, what is the maximum penalty that may be imposed in Ken? Which of the following is a TRUE statement? 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. C) statements made in the application and the premium 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? The gap between the total death benefit and the policys cash value. Both partners are still married at the time of Bob's death. 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. How do marketers use insights regarding the self-concept? Insurance Multiple-Choice Questions Flashcards Preview - Brainscape The type of annuity she is seeking is called. Policyowner may increase or decrease the premium payments Policyowner may increase or decrease the face amount Policyowner can contribute large sums of money Policyowner has the right to select the investment which will provide the greatest return, All of the following riders can increase the death benefit amount EXCEPT Cost of Living Waiver of Premium Accidental Death Rider Guaranteed Insurability, Which of these is NOT considered to be a common life insurance nonforfeiture option? claim forms 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. $2,406 representation 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. Which of these statements is true? aleatory If the consumer price index had gone up 4%, how much may Ron increase the face value of the policy? D) both the policyowner and the insurer must know all material facts and relevant information, B) only one party (the insurer) makes any kind of legally enforceable promise, Intentional withholding of material facts that would affect an insurance policy's validity is called a(n) weegy. the insurer's obligations are dependent upon certain acts of the insured individual other insurance D) imposed authority, What makes an insurance policy a unilateral contract? If the other agreement or condition is performed, then the conditional contract is . Key elements of Organizational Behavior - People, Structure ,Technology & External Environment | Organizational Behavior, Penology - Meaning, Types, Importance, Scope and Example | Sociology, Karmachari Sanchaya Kosh - | Employees Provident Fund Nepal, Perceptual Errors -Types of Perceptual Error | Fundamentals of Organizational Behaviour, Difference between Manufacturing and Service Operations | Operation Management. Lisa has recently bought a fixed annuity. A contract that requires certain conditions or acts by the insured individual, According to life insurance contract law, insurable interest exists, The term which describes the fact that both parties of a contract may NOT receive the same value is referred to as. 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 Corporations, like all firms, can raise money by borrowing from banks and other lending institutions. Which of the following statements is true? which of the following best describes a conditional insurance contract? Your email address will not be published. A) there must be an offer and acceptance What types of life insurance are normally used for key employee indemnification? A) voidable express, ______ is NOT an element of a valid contract. 2 See answers 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 A.$1,656 Who prosecutes crimes that involve the violation of insurance laws that fall under US Code 1033? 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? Free Flashcards about Stack #2476860 - StudyStack B) the unwritten authority that the agent is assumed to have Required fields are marked *. A) Parties involved in the contract warranty Which settlement option pays a stated amount to an annuitant, but no residual value to a beneficiary? 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 What is this an example of? D) Principal Capacity, A unilateral contract is one in which Which type of life insurance offers flexible premiums, a flexible death benefit, and the choice of how the cash value will be invested? (D) Only one party is legally bound to the contract. A) Authority given in writing to an agent in the agency agreement C) there must be legal reasons for entering into the contract Reduction of premium dividend option Extended term option Paid-up option Cash dividend option, Net death benefit will be reduced if the loan is not repaid, Joanne has a $100,000 whole life policy with an accumulated $25,000 of cash value. I hope you got the correct answer to your question. Q. B) Parent and children 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.

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