which of the following best describes a conditional insurance contract which of the following best describes a conditional insurance contract

Asked 10/6/2017 7:04:21 AM. Zucchini is the best descriptive word. 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. After being properly appointed by the insurer. Vegetable B. What are conditions in an insurance policy? discreet apparent implied express, Bob and Tom start a business. Eventually, they retire and dissolve the business. there must be legal reasons for entering into the contract 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 dividend option would an insurer invest the policyowners money and add any interest earnings as the dividends accrue? Sharing commissions with a producer licensed in the same line of business. Which type of life insurance policy is this? B. 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 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. When does a life insurance policy typically become effective? Legal Which of these statements regarding the annuitant is CORRECT? Which of the following is a TRUE statement? A) Insurable interest A) Express 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 This is also known as a non-negotiable insurance contract, or an automatic contract. The policies continue in force with no change. 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 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. Connect with others, with spontaneous photos and videos, and random live-streaming. C) Legal purpose C) Implied B) Apparent Lisa has recently bought a fixed annuity. __________. How could a company manager use a process cost summary to determine if the program to reduce water usage is successful? B. A) when any business relationship exists What is the purpose for having an accelerated death benefit on a life insurance policy? Shirley has a $500,000 10-year-non-renewable level term life policy. C) consideration 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. d) an agreement requires a definite offer and an indefinite acceptance. C) the terms must be accepted or rejected in full which of the following best describes a conditional insurance contract? What is this an example of? Under a life insurance policy, what does the insuring clause state? A (D) Only one party is legally bound to the contract. C) representation Elizabeth is the beneficiary of a life insurance policy. What would happen if a life insurance applicant is given a conditional receipt? A new stain removal product claims to completely remove the stains on 909090 percent of all stained garments. B) acceptance Premium clause Consideration clause Adhesion clause Contestability clause, When the principal gives the agent authority in writing, it's referred to as express authority implied authority apparent authority imposed authority, Ambiguities in an insurance policy are always resolved in favor of the insured producer insurer underwriter, ______ is NOT an element of a valid contract. Only the insurer is legally bound The amount of his disability income payments for an on-the-job injury may be reduced by. Both partners are still married at the time of Bob's death. 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) Law of Agency Orissa purchases a 10-year level term life insurance policy that has a death benefit of $200,000. Ken is a producer who has obtained Consumer Informations Reports under false pretenses. A) offer 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) How do marketers use insights regarding the self-concept? 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"? Risk reduction Risk transference Risk avoidance Risk retention, The cause of a loss is referred to as a(n) hazard adversity peril risk, How do insurers predict the increase of individual risks? Insurance Cram Ch. 6 Flashcards | Chegg.com In a life or health insurance contract, "consideration" would be the, statements made in the application and the premium, A professional liability for which producers can be sued for mistakes of putting a policy into effect is called. Which of these statements is true? A) A contract that requires certain conditions or acts by the insured individual. Corporations, like all firms, can raise money by borrowing from banks and other lending institutions. 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 $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? Updated 10/6/2017 9:10:03 AM. insured Which of the following BEST describes a conditional insurance contract? D) Conditional, Which of the following is NOT a requirement of a contract? It is the means by which one or more parties bind themselves to certain promises. Which market index is normally associated with an indexed annuitys rate of return? The present cash value of the policy equals $250,000. Which of the following is true of the law of contracts? What does the word level in Level Term describe? What does the Group Life underwriting risk selection process help protect insurance companies from? The power given to an individual producer that is not specifically addressed in his/her contract is considered what type of authority? 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. C) there must be legal reasons for entering into the contract What is the advantage of adding this rider? they are "take it or leave it" contracts. purpose, Insurable interest does NOT occur in which of the following relationships? Under the Fair Credit Reporting Act, what is the maximum penalty that may be imposed in Ken? 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? Risk Hazard Indemnity Peril, Insurance companies determine risk exposure by which of the following? B) at the time of application B) other insurance The authority granted to a licensed producer is provided via the 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? B) only an offer 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. An unintentional violation of Utah insurance law could lead a producer to a fine of up to _____ per violation. D) misrepresentation, Which of the following is NOT required in the content of a policy? 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, 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. His insurance agent told him the policy would be paid up if he reached age 100. Insurance Quiz (MCQs) Archives - Management Notes B) Period to which the coverage exists Connect the text to your own experiences. B) Rescind the policy C) Contract must have a legal purpose Describe the structure. 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). Which of the following best describes a symbol. D) errors and oversights, In an insurance contract, the insurer is the only party legally obligated to perform. Consideration clause Which of the following BEST describes a conditional insurance contract? A) A contract that requires certain conditions or acts by the insured individual A) Parties involved must be competent Question. Apparent Nothing $100,000 $250,000 $500,000, Which type of life insurance is normally associated with a Payor Benefit rider? Death benefits Cash value Loading costs Separate account investments, Which policy feature makes a universal life policy different from a whole life policy? A type of group that has a constitution and bylaws and has been organized for purposes other than obtaining insurance is called a(n). An example of an unfair claims settlement practice is, Turning down a claim without providing the basis of denial. The face amount and premium will remain constant over the 10-year period. Group policy Adjustable life policy Whole life policy Endowment policy, A renewable Term Life insurance policy allows the policyowner the right to renew the policy at anytime the policyowner chooses as many times as the policyowner chooses paying the same premium as before the renewal without producing proof of insurability, When a decreasing term policy is purchased, it contains a decreasing death benefit and increasing premiums level premiums decreasing premiums variable premiums, Julie has a $100,000 30-year mortgage on her new home. (D) Only one party is legally bound to the contract. the insurer's obligations are dependent upon certain acts of the insured individual Log in for more information. Producers act in a(n) ________ capacity when holding insurance premiums. 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. B) Offer and acceptance What types of life insurance are normally used for key employee indemnification? Rob recently died at age 60. In which form of corporate financing is the investor also an owner? The insured, on the other hand, makes few, if any, legally binding promises to the insurer. aleatory C) Aleatory A) Insurer's promise to pay benefits 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 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) Risk insured against, A professional liability for which producers can be sued for mistakes of putting a policy into effect is called 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? An example of an unfair claims practice would be, Failing to effectuate prompt, fair, and fair equitable settlements of a claim. D) Legal Purpose, Which of the following is present when an applicant stands to lose value if the insured dies? acceptance An insurer exaggerating its dividends in a magazine advertisement. Bob dies 12 months later. A life insurance policyowner does NOT have the right to, Fixed annuities provide each of the following EXCEPT. Advertisement. Events are those which cannot be controlled by either . Flashcards - Ch. 15 - Disability Income - FreezingBlue C.$2,113 A minimum of 12 months after date of purchase, Insurance premium is determined by each of the following factors EXCEPT. Which of the following is NOT considered rebating? 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? For a trip to the hospital, Evan Appleton paid $1,656 in hospital charges, a$750 insurance deductible, and a $457 co-payment. B) the insurer's obligations are dependent upon certain acts of the insured individual 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. which of the following best describes a conditional insurance contract? B) premium only What kind of policy is this? B) Equal consideration is required between the involved 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? B) issuance of the policy other insurance A person who is a nonsmoker, of average weight, and in excellent health would most likely be in which risk classification? 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). In this situation, who will receive Bob's policy proceeds? A(n) ________ investigates, negotiates, and settles claims for a few on behalf of an insurance company. In this situation, who will receive Bob's policy proceeds? Countersignature, Which of the following is an example of the insured's consideration? The policies continue in force with no change. 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) Authority given in writing to an agent in the agency agreement D) purpose, Which principle is accurately described with the statement "Insureds are entitled to recover an amount NOT greater than the amount of their loss"? Only the insured pays the premium Which of the following best defines diction? A. simile B - Weegy Adjustable universal life policy Flexible universal life policy Variable universal life policy Modified universal life policy, Jonas is a whole life insurance policyowner and would like to add coverage for his two children. D) Evident authority, Which of the following is an example of the insured's consideration? Which type of multiple protection policy pays on the death of the last person? D) Terminate the agent, Insurable interest does NOT occur in which of the following relationships? Which of the following is an annuity that is linked to a market-related index? discreet Plot this function and determine if she is ready to attempt the Bluenose Marathon. A life insurance claim which involves a per capita distribution of policy proceeds would be payable to the. Offering payment of approved claims within 30 days after affirming liability. Preferred risk policies with reduced premiums are issued by insurance companies because the insured has, Better than average mortality or morbidity experience. Provide an opinion. 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. How does life insurance create an immediate estate? Insurance producer Jerry offers a $350 shopping card if they purchase an insurance product through him. 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. Which Of The Following Statements About Personal Selling Is Correct? 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? Loans obtained by a policyowner against the cash value of a life insurance policy. representation Insurers must maintain files of all documents used for solicitation for ____ year(s) after the last authorizes date of use. 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? d. a deductible stated in the policy's provision. if the insured lives beyond the 5 years, no benefits are payable. guarantee 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. Which of the following does a life insurance policy summary normally include?