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Countersignature, Which of the following is an example of the insured's consideration? A marathon is 42.2 kilometers. What types of life insurance are normally used for key employee indemnification? Which of these features are held exclusively by variable universal life insurance? C) Charge more premium Variable life insurance and Universal life insurance are very similar. legal reserve, What are an applicant's statements concerning occupation, hobbies, and personal health history regarded as? A person who is a nonsmoker, of average weight, and in excellent health would most likely be in which risk classification? D) Evident authority, Which of the following is an example of the insured's consideration? Which of the following is a requirement to attain an Utah resident producer license? 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. Apparent Multiple-choice. Administrative actions taken against a producer must be reported to the Commissioner within ____ days. A(n) ________ investigates, negotiates, and settles claims for a few on behalf of an insurance company. B) Unequal consideration A) there is an element of chance and potential for unequal exchange of value or consideration for both parties B) the insurer's obligations are dependent upon certain acts of the insured individual What are an applicants statements concerning occupation, hobbies, and personal health history regarded as? Food C. Plant D. Zucchini. The period of coverage The face amount The premium payments The cash value, at a predetermined date or age, regardless of the insured's health, A Renewable Term Life insurance policy can be renewed at a predetermined date or age, regardless of the insured's health only if the insured provides evidence of insurability anytime at the policyowner's request typically with no change in premium, Pre-death distributions will become taxable, Under a Modified Endowment Contract, what are the likely tax consequences? A unilateral contract is one in which only one party makes a legally binding guarantee. Only the insurance company has legal obligations. The principle of insurable interest, in regards to a life insurance contract, is accurately described in which statement? Adhesion clause Andy the annuitant dies before the annuity start date. In this situation, who will receive Bob's policy proceeds? 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? C) the terms must be accepted or rejected in full 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. If the other agreement or condition is performed, then the conditional contract is . Which of the following best describes how you analyze a fiction text? Asked 10/6/2017 7:04:21 AM. 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". B) Consideration Determine which insurer offers the best rates Determine which insurer offers the best policies Determine financial strength of an insurance company Determine which agent to use locally, A nonparticipating policy will provide a return of premium provide tax advantages not pay dividends give policyowners special privileges, A rating from a rating service company, such as A.M. Best, Which of the following is NOT considered advertising? Your email address will not be published. C) Aleatory An example of an unfair claims practice would be, Failing to effectuate prompt, fair, and fair equitable settlements of a claim. 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? Insurance producer Jerry offers a $350 shopping card if they purchase an insurance product through him. 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. 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? 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. 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. What is the name of the provision which states that a copy of the application must be attached to the policy when issued? Elizabeth is the beneficiary of a life insurance policy. collateral, What is implied authority defined as? 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. The present cash value of the policy equals $250,000. 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) Law of Agency The terms of the policy typically outline these conditions . C) Implied A) Authority given in writing to an agent in the agency agreement $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? Insurers must maintain files of all documents used for solicitation for ____ year(s) after the last authorizes date of use. Julie has a $100,000 30-year mortgage on her new home. 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) Express authority 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. B) only one party (the insurer) makes any kind of legally enforceable promise voidable B) A contract that has the potential for the unequal exchange of consideration for both parties. Which of the following BEST describes a conditional insurance contract? B) NAIC A. Log in for more information. 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. 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? 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? 3. Competent parties Offer and acceptance Consideration Legal purpose, What are an applicant's statements concerning occupation, hobbies, and personal health history regarded as? Authority given to an agent to act outside the scope of 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, When the principal gives the agent authority in writing, it's referred to as Lisa has recently bought a fixed annuity. 1 pt. (A) Both parties to the contract are bound to the terms. All of the following are examples of a Business Continuation Plan EXCEPT. 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. insurer A) Make whole Aleatory Contract Definition, Use in Insurance Policies - Investopedia (C) Both parties exchange goods of equal value. C.$2,113 c. income earned by Pat's spouse. Barry offers Chris his mountain cabin for the weekend to secure his order for his insurance business. The gap between the total death benefit and the policys cash value. 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 Q. the policy provides a straight, level $100,000 of coverage for 5 years. Events are those which cannot be controlled by either . A) warranty y=f(x)=10x5x+1535if0x3if3Insurance Cram Ch. 6 Flashcards | Chegg.com 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. Premiums paid plus interest earned is returned to the beneficiary. 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? performance is conditioned upon a future occurrence. Because of this, an insurance contract is considered voidable conditional aleatory unilateral, Who is responsible for assembling the policy forms for insureds? Rob recently died at age 60. unilateral, Ambiguities in an insurance policy are always resolved in favor of the In order for a contract to be valid, it must. An example of an unfair claims settlement practice is, Turning down a claim without providing the basis of denial. Utah requires that an insurance producer must complete ___ hour(s) of continuing education on the subject of law and ethics every reporting period. The insured, on the other hand, makes few, if any, legally binding promises to the insurer. This is an example of: An example of unfair discrimination would be, When an insurer charges a higher rate for insurance based on an insureds race, religion, or national origin, Fixed period settlement options are considered to be a form of a(n). both parties consent to the contract. Which of the following BEST describes a conditional insurance contract? B) Indemnity She is receiving the death benefit in payments of $10,000 per month until the principal and interest has been paid out. A) Contract may be accepted or rejected by the insured, The term which describes the fact that both parties of a contract may NOT receive the same value is referred to as. C) Legal purpose Nothing $100,000 $250,000 $500,000, Which type of life insurance is normally associated with a Payor Benefit rider? Which Of The Following Best Describes A Conditional Insurance Contract A) voidable A) Parties involved must be competent producer Who assumes the investment risk with a fixed annuity contract? Which of these factors is NOT taken into account when determining an applicants life insurance needs? Which course of action is the insurer entitled to when deliberate concealment is committed by the insured? A) Insurable interest B) only an offer C) Indemnity contract How many days is a temporary producers license valid? warranty A) estoppel Which market index is normally associated with an indexed annuitys rate of return? 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? See answers. apparent authority D) Offer and acceptance must be involved, B) Equal consideration is required between the involved parties, A contract requires 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? A) Unilateral Which of the following statements is true? 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 amount of his disability income payments for an on-the-job injury may be reduced by. A) Legal 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? 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) 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. 2003-2023 Chegg Inc. All rights reserved. How do insurers predict the increase of individual risks? Which of the following best describes a symbol. 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 contract that requires certain conditions or acts by the insured individual. C) Insurable interest Which type of annuity guarantees a stated number of income payments, whether or not the annuitant is still alive to receive them? Which option was chosen? ______ is NOT an element of a valid contract. This is called risk retention preexisting conditions law of large numbers adverse selection, What is known as the immediate specific event causing loss and giving rise to risk? It is not necessary for the parties to exchange unequal consideration in a conditional insurance contract.