Nothing $100,000 $250,000 $500,000, Which type of life insurance is normally associated with a Payor Benefit rider? Sharing commissions with a producer licensed in the same line of business. B) Indemnity A) Competent parties D) errors and oversights, In an insurance contract, the insurer is the only party legally obligated to perform. What was his total bill? What guarantees that the statements supplied by an insurance applicant are true? C) Legal purpose Since each partner contributes an important element to the success of the business, they decide to take life insurance policies out on each other, and name each other as beneficiaries. Insurance interest does NOT occur in which of the following relationships? An individual who has a hobby racing cars once a month.
Chapter 3 Legal Concepts of the Insurance Contract - Quizlet 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. both parties consent to the contract. apparent authority When the term insurance expires. 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. D) Legal Purpose, Which of the following is present when an applicant stands to lose value if the insured dies? A) Parties involved must be competent
Aleatory Contract Definition, Use in Insurance Policies - Investopedia 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? Countersignature, Which of the following is an example of the insured's consideration?
which of the following best describes a conditional insurance contract 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? C) Aleatory C) Indemnity contract 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. 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 Eventually, they retire and dissolve the business. A symbol is a mark, sign or word that indicates, signifies, or is understood as representing an idea, object, or relationship, best describes a symbol. What does a life insurance policy guarantee to the stated beneficiary upon the death of the insured? If she dies 15 years after the policy's inception date, how much will her beneficiary receive? D) an offer and acceptance of the contract terms, D) an offer and acceptance of the contract terms, In an insurance contract, the applicant's "consideration" is the D) A contract where only one party makes any kind of enforceable contract, A) A contract that requires certain conditions or acts by the insured individual, All of the following are elements of an insurance policy EXCEPT 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". What is the purpose for having an accelerated death benefit on a life insurance policy? A) Insurability What is this called? Which of the following best describes the MIB? B) Only the insured can change the provisions A) Parties involved in the contract Rob recently died at age 60. Which of these factors is NOT taken into account when determining an applicants life insurance needs? Conditional, Under a contract of adhesion, $1,000 $3,000 $5,000 $7,000, A nonparticipating company is sometimes called a(n) alien insurer mutual insurer reinsurer stock insurer, Because dividends are considered to be a return of premium, Why are dividends from a mutual insurer not subject to taxation? A) A contract that requires certain conditions or acts by the insured individual Log in for more information. Which of the following policies does NOT build cash value?
Which of the following Best Describes a Conditional Insurance Contract What does the Group Life underwriting risk selection process help protect insurance companies from? C) apparent authority A) One party is restored to the same financial position the party was in before the loss occurred. fichoh. 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? the insurer's obligations are dependent upon certain acts of the insured individual contain an offer and acceptance, In an insurance contract, the insurer is the only party legally obligated to perform. Which policy requires an agent to register with the National Association of Securities Dealers (NASD) before selling? Utah requires that an insurance producer must complete ___ hour(s) of continuing education on the subject of law and ethics every reporting period. All of these are typically sources of underwriting information for life or health insurance EXCEPT. Which of the following BEST describes a conditional insurance contract? Which of the following statements correctly describes a contract of indemnity? What would happen if a life insurance applicant is given a conditional receipt? 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? A) Express authority 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? Which of these is considered to be a disadvantage of owning this type of annuity? Eventually, they retire and dissolve the business. 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 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? Required fields are marked *. What Benefit Does The Payor Clause On A Juvenile Life Policy Provide? The authority granted to a licensed producer is provided via the B) implied authority 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 Expert answered| selymi |Points 23307|. A. B) Rescind the policy (D) Only one party is legally bound to the contract. Which of the following products would allow him to accomplish this? Policyowner has the right to select the investment which will provide the greatest return. D) A contract where only one party makes any kind of enforceable contract, Answer:A) A contract that requires certain conditions or acts by the insured individual. legal reserve, What are an applicant's statements concerning occupation, hobbies, and personal health history regarded as? In most insurance policies, the insurer is the only one who makes a legally binding promise to pay insured claims. It is the means by which one or more parties bind themselves to certain promises.
B) Offer and acceptance C) Competent parties Legal purpose The face amount and premium will remain constant over the 10-year period. D) Evident authority, Which of the following is an example of the insured's consideration? C.$2,113 underwriting A unilateral contract is one in which only one party makes a legally binding guarantee. B) conditional Please check below to know the answer. Under the McCarran-Ferguson Act, what is the minimum penalty for this? A) State Insurance Departments
Which of the following best defines diction? A. simile B - Weegy A) Sister and brother Typically, bilateral contracts involve an equal obligation or. Who is responsible for assembling the policy forms for insureds? d) an agreement requires a definite offer and an indefinite acceptance. if the insured lives beyond the 5 years, no benefits are payable. Peril Hazard Loss factor Liability, Which of these techniques will remove the risk of losing money in the stock market by never purchasing stocks?
Which Of The Following Best Describes A Conditional Insurance Contract 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. c. income earned by Pat's spouse. 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 Accelerated death benefit rider Waiver of premium rider Extended term option Decreasing term insurance. A life insurance policy that is subject to a contract interest rate is referred to as.
Georgia Life Insurance Exam Ch. 2 questions & answers for quizzes and Which of these would NOT be an unfair claims practice? Guaranteed Insurability rider Family term insurance rider Family whole insurance rider Payor benefit rider, A partial surrender is allowed in which of the following life policies? Plot this function and determine if she is ready to attempt the Bluenose Marathon. Answer Explanation: A contract that requires certain conditions or acts by the insured individual. 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? 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". 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 these statements is true? Notify me of follow-up comments by email. Which of the following BEST describes a conditional insurance contract? In which form of corporate financing is the investor also an owner? weegy. A) A contract that requires certain conditions or acts by the insured individual. A new stain removal product claims to completely remove the stains on 909090 percent of all stained garments. B) Unequal consideration C) consideration AzAnswer team is here with the right answer to your question. D) Consideration clause, When the principal gives the agent authority in writing, it's referred to as Corporations, like all firms, can raise money by borrowing from banks and other lending institutions. conditions, Legal purpose is a term used in contract law meaning Legal Both partners are still married at the time of Bob's death. Risk Hazard Indemnity Peril, Insurance companies determine risk exposure by which of the following? Loans obtained by a policyowner against the cash value of a life insurance policy. 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 would be considered an underwriting duty of an agent? A marathon is 42.2 kilometers. A) express authority
Policy Application Riders Certificate of Authority, A life insurance rider that allows an individual to purchase insurance as they grow older, regardless of insurability, is called a(n) guaranteed term rider guaranteed insurability rider accelerated benefit rider cost of living rider, The suicide clause of a life insurance policy states that if an insured commits suicide within a stated period from the policy's inception, the insurer will only be liable for a return of premiums paid minus indebtedness and with interest during the last 12 months minus indebtedness and without interest during the last 6 months, A life insurance policyowner does NOT have the right to change a beneficiary select a beneficiary take out a policy loan revoke an absolute assignment, A life insurance policy normally contains a provision that restricts coverage in the event of death under all of the following situations EXCEPT fare-paying passenger pilot of personal airplane suicide war, The insurer's obligation to pay a death benefit upon an approved death claim, Under a life insurance policy, what does the insuring clause state? One-sided or unfair insurance contracts can, however, exist if they contain provisions that disproportionately benefit one party. A) Unilateral contract A) Only the insured pays the premium Under a life insurance policy, what does the insuring clause state? At what point may a producer sell insurance for an insurer? discreet apparent implied express, Bob and Tom start a business. 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. producer's apparent authority A) Make whole GENERAL LAW OF CONTRACTS A contract is an agreement enforceable by law. Ken is a producer who has obtained Consumer Informations Reports under false pretenses. D) Business owner and business client, Under a contract of adhesion, A) Express D) misrepresentation, Which of the following is NOT required in the content of a policy?
Free Flashcards about Stack #2476860 - StudyStack Competent parties Offer and acceptance Consideration Legal purpose, What are an applicant's statements concerning occupation, hobbies, and personal health history regarded as? the terms must be accepted or rejected in full Which of the following is a TRUE statement? Which option was chosen? What is the meaning of par value of stock with respect to the corporate form of organization? Term, whole, and universal life insurance. Which type of annuity guarantees a stated number of income payments, whether or not the annuitant is still alive to receive them? Both partners are still married at the time of Bob's death. She is receiving the death benefit in payments of $10,000 per month until the principal and interest has been paid out. B) A contract that has the potential for the unequal exchange of consideration for both parties. Which of the following is the best descriptive word? be in writing Death benefits Cash value Loading costs Separate account investments, Which policy feature makes a universal life policy different from a whole life policy? 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). the contract must be aleatory Which of the following BEST describes a conditional insurance contract? issuance of the policy other insurance C) statements made in the application and the premium Implied Orissa purchases a 10-year level term life insurance policy that has a death benefit of $200,000. Preferred risk policies with reduced premiums are issued by insurance companies because the insured has, Better than average mortality or morbidity experience. A life insurance claim which involves a per capita distribution of policy proceeds would be payable to the. be filed with the state Which of the following is an example of the insureds consideration? An example of an unfair claims settlement practice is, Turning down a claim without providing the basis of denial. C) Only the insurer is legally bound How do marketers use insights regarding the self-concept? Which of these statements regarding the annuitant is CORRECT? What kind of policy is this? Law of Agency When does a life insurance policy typically become effective? C) there must be legal reasons for entering into the contract B) the contract must be aleatory Under the Fair Credit Reporting Act, what is the maximum penalty that may be imposed in Ken? Bob and Tom start a business. B) errors and omissions Which of the following statements is true? 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 Barry offers Chris his mountain cabin for the weekend to secure his order for his insurance business. Elizabeth is the beneficiary of a life insurance policy. When initial premium is collected and policy is issued. C) promises made
Life & Health 1 (Chapters 1, 2, 3, & 4) Flashcards Preview - Brainscape The policy automatically converts to whole life after the 10-year period The face amount will remain constant and the premium will increase over the 10-year period The premium will remain constant and the face amount will increase over the 10-year period The face amount and premium will remain constant over the 10-year period, will no longer provide insurance protection, Shawn, Mike, and Dave are brothers who have a $100,000 "first to die" joint life policy covering all three of their lives. Which statement is CORRECT when describing a contract of adhesion? C) Implied ______ is NOT an element of a valid contract. Which of these features are held exclusively by variable universal life insurance? D) Intent, Which contract element is insurable interest a component of?
Bilateral Contract: Definition, How It Works, and Example - Investopedia Joint life policy Survivorship life policy Dual life policy Multiple life policy, A life insurance policy that contains a guaranteed interest rate with the chance to earn a rate that is higher than the guaranteed rate is called whole life group life credit life universal life, Can be converted to permanent coverage without evidence of insurability, Donald is the primary insured of a life insurance policy and adds a children's term rider. In the case of an insurance contract, the contracting parties are the claimant and the insurer. Use the binomial distribution to find P(x13)P(x \leq 13)P(x13) if the stain removal product's claim is correct. Andy the annuitant dies before the annuity start date. A) the appearance of authority an insurer gives to its agent 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. If threats or force is used to affect an insurance transaction, the unfair trade practice of __________ has been committed. What are an applicants statements concerning occupation, hobbies, and personal health history regarded as? Authority given to handle claims and process payments Pay owns a 20-pay life policy with a paid-up dividend option. 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. 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. After being properly appointed by the insurer. D) Terminate the agent, Insurable interest does NOT occur in which of the following relationships? 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. 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 dividend option would an insurer invest the policyowners money and add any interest earnings as the dividends accrue? apparent 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. Under the Fair Credit Reporting Act, what is the maximum penalty that may be imposed on Ken? Which of these features are held exclusively by variable universal life insurance? C) Authority given to handle claims and process payments Variable life insurance and Universal life insurance are very similar. B) Bob's estate express, ______ is NOT an element of a valid contract. 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 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? Which of these legislation Acts is designed to protect consumers with guidelines regarding credit reporting and distribution? Adhesion clause The provision that allows this is called Partial Surrender Subrogation Automatic Premium Loan Accelerated Death Benefit, All of these are characteristics of a universal life insurance policy EXCEPT Flexible death benefit Fixed surrender value Flexible premiums Builds cash value, Which of the following policies does NOT build cash value? B) Apparent A) Insurer's promise to pay benefits B) other insurance Which of the following is CORRECT regarding the death benefit amount? c) a contract must be in writing. 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? B) Period to which the coverage exists D) Risk insured against, A professional liability for which producers can be sued for mistakes of putting a policy into effect is called A) estoppel Under the McCarran-Ferguson Act, what is the minimum penalty for this? Insurance contracts are unilateral contracts. 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.