which of the following best describes a conditional insurance contract

Insurance contracts are unilateral contracts. Insurers must maintain files of all documents used for solicitation for ____ year(s) after the last authorizes date of use. A person who is a nonsmoker, of average weight, and in excellent health would most likely be in which risk classification? What is the purpose for having an accelerated death benefit on a life insurance policy? 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. If Sharon MUST obtain Mikes signature in order to change the beneficiary, what kind of beneficiary designations is this? Bob dies 12 months later. 1 pt. If she dies 15 years after the policys inception date, how much will her beneficiary receive? legal reserve, What are an applicant's statements concerning occupation, hobbies, and personal health history regarded as? Preferred risk policies with reduced premiums are issued by insurance companies because the insured has, Better than average mortality or morbidity experience. It is not necessary for the parties to exchange unequal consideration in a conditional insurance contract. Completing all applications and collecting initial premiums. 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 new stain removal product claims to completely remove the stains on 909090 percent of all stained garments. Which of the following best describes the MIB? voidable D) Personal contract, The importance of a representation is demonstrated in what rule? Events are those which cannot be controlled by either . During periods of inflation, annuitants will experience a decrease in purchasing power of their payments. The present cash value of the policy equals $250,000. C) adhesion 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? Declarations Entire contract Waivers Conditions, A whole life policy option where extended term insurance is selected is called a(n) dividend option settlement option nonforfeiture option interest-only option, Which of these would limit a company's liability to provide insurance coverage? 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. 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 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. Waiver of premium Juvenile waiver Guaranteed insurability Payor benefit, Which of the following is a reinstatement condition? 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? C) A contract where one party "adheres" to the terms of the contract Which Of The Following Statements About Personal Selling Is Correct? 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. D) underwriter, Reasonably necessary acts that an agent must perform for carrying out his/her expressly authorized duties are covered by an agent's In order to maintain coverage and make a successful claim, its crucial that policyholders read and understand their insurance contract carefully. 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) Make whole Write a summary of the main ideas. Intent, The deeds and actions of a producer indicate what kind of authority? Adhesion clause A(n) ________ investigates, negotiates, and settles claims for a few on behalf of an insurance company. D) Consideration, What are an applicant's statements concerning occupation, hobbies, and personal health history regarded as? B) concealment $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? Which of the following statements about aleatory contracts is NOT true? $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? B) the contract must be aleatory 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. 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. It is the means by which one or more parties bind themselves to certain promises. Which of these statements is true? Increasing Term Life policy Nonparticipating policy Modified Whole Life policy Universal Life policy, What is the automatic continuance of insurance coverage referred to as? Craig purchased a life insurance policy for enabling his heirs to pay estate taxes. 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) promises made the contract must be aleatory Juvenile insurance Family income insurance Spouse insurance Term rider, A life insurance policy written on one contract for two people in which it is payable upon the first death is called Split Shared Joint Survivorship, Level premium permanent insurance accumulates a reserve that will eventually equal the face amount of the policy pay a dividend to the policyowner require the policyowner to make periodic withdrawals become larger than the face amount, A permanent life insurance policy where the policyowner pays premiums for a specified number of years is called a(n) adjustable policy limited pay policy level term policy variable universal policy, term, whole, and universal life insurance, What types of life insurance are normally used for key employee indemnification? It is a government agency that collects medical information on the insured from the insurance companies C. It is a member organization that protects against insolvent insurers D. 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. Premiums paid plus interest earned is returned to the beneficiary. What is a corridor in relation to a Universal Life insurance policy? Question and answer. Both partners are still married at the time of Bob's death. What is the difference between insurance condition and warranty? Which of the following is an example of the insureds consideration? 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. 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 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. The type of annuity she is seeking is called. Aleatory Contract Definition, Use in Insurance Policies - Investopedia B) the unwritten authority that the agent is assumed to have If xxx actually turns out to be 131313, what do you think of the claim? B) Parent and children How many days is a temporary producers license valid? express authority 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. other insurance See answers. 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? A) Parties involved in the contract When initial premium is collected and policy is issued. producer's apparent authority implied authority When does a life insurance policy typically become effective? Dual Life insurance Joint Life insurance Last Survivor Life insurance Shared Life insurance, Index whole life insurance contains a securities component that acts as a(n) hedge against inflation premium stabilizer means to lowering taxes on earnings incentive to purchase more coverage, Which of the following are the premium payments for a Universal life policy NOT used for? How often must an insurance producers license in Utah be renewed? 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? 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? the contract must be a contract of adhesion, there must be legal reasons for entering into the contract, What makes an insurance policy a unilateral contract? Which contract element is insurable interest a component of? AzAnswer team is here with the right answer to your question. Which of the following is the best descriptive word? A - Weegy State Insurance Departments NAIC Insurance carriers Insurance producers, Intentional withholding of material facts that would affect an insurance policy's validity is called a(n) estoppel concealment adhesion misrepresentation, The power given to an individual producer that is not specifically addressed in his/her contract is considered what type of authority? The death benefit would be. C) the terms must be accepted or rejected in full D) Business owner and business client, Under a contract of adhesion, Interest on policy loans is tax deductible Premium payments are tax deductible Pre-death distributions will become taxable Cash value cannot be surrendered early, seeks temporary protection and lower premiums, Term insurance is appropriate for someone who seeks living benefits for themselves seeks a policy that builds cash value seeks temporary protection and lower premiums seeks permanent protection and higher premiums, Shirley has a $500,000 10-year non-renewable level term life policy. 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. only one party makes any kind of enforceable promise, the terms must be accepted or rejected in full, 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 threats or force is used to affect an insurance transaction, the unfair trade practice of __________ has been committed. 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. Required fields are marked *. 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. Who is responsible for assembling the policy forms for insureds? D) collateral, Express power given to an agent in an agency agreement is 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. The terms of the policy typically outline these conditions, which may include paying premiums on time and maintaining the insured property in good condition. Barry offers Chris his mountain cabin for the weekend to secure his order for his insurance business. This is also known as a non-negotiable insurance contract, or an automatic contract. A) Unilateral contract A) Legal $2,406 Parent and children In order for a contract to be valid, it must. Eventually, they retire and dissolve the business. 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? Offering payment of approved claims within 30 days after affirming liability. Answer Explanation: A contract that requires certain conditions or acts by the insured individual. the policy provides a straight, level $100,000 of coverage for 5 years. they are "take it or leave it" contracts. D) imposed authority, What makes an insurance policy a unilateral contract? c. income earned by Pat's spouse. When the principal gives the agent authority in writing, its referred to as, The terms must be accepted or rejected in full. Which policy requires an agent to register with the National Association of Securities Dealers (NASD) before selling? Under the Fair Credit Reporting Act, what is the maximum penalty that may be imposed in Ken? Both partners are still married at the time of Bob's death. 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. 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? C) fiduciary trust Ken is a producer who has obtained Consumer Informations Reports under false pretenses. 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. 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 Under the Fair Credit Reporting Act, what is the maximum penalty that may be imposed on Ken? LIFE INSURANCE LICENSING EXAM Flashcards | Chegg.com 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 is a requirement to attain an Utah resident producer license? Only the insured can change the provisions Loans obtained by a policyowner against the cash value of a life insurance policy. 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 Which of these features are held exclusively by variable universal life insurance? d. a deductible stated in the policy's provision. Legal C) Competent parties 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. A contract that requires certain conditions or acts by the insured individual. b. benefits paid under workers compensation. D) conditions, The authority granted to a licensed producer is provided via the What would happen if a life insurance applicant is given a conditional receipt? 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. 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. Rob recently died at age 60. Shirley has a $500,000 10-year-non-renewable level term life policy. 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 C) insurer 2003-2023 Chegg Inc. All rights reserved. A) Sister and brother Have a great time ahead. Anheuser-Busch InBev is trying to reduce its water usage. Authority given to handle claims and process payments 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. offer 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 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. Which of the following describes a person who is NOT acceptable by an insurer at standard rates because of health history, occupation, or hobbies? What are an applicants statements concerning occupation, hobbies, and personal health history regarded as? Business owner and business client, The power given to an individual producer that is not specifically addressed in his/her contract is considered what type of authority? the insurer's obligations are dependent upon certain acts of the insured individual C) apparent authority B) A contract that has the potential for the unequal exchange of consideration for both parties. The amount of his disability income payments for an on-the-job injury may be reduced by. A) the appearance of authority an insurer gives to its agent Please check below to know the answer. Which of the following is true of the law of contracts? What does the Group Life underwriting risk selection process help protect insurance companies from? This legal agreement requires prior performance of another agreement or clause in order to be enforceable. C) Legal purpose 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). Intentional withholding of material facts that would affect an insurance policy's validity is called a(n). B) A contract that has the potential for the unequal exchange of consideration for both parties Policyowner has the right to select the investment which will provide the greatest return. C) A contract where one party "adheres" to the terms of the contract. 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) C) The insured and the insurer contribute equally to the contract. Consideration clause 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.

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