What was his total bill? Child term rider Payor rider Family maintenance rider Family income rider, What happens to the coverage under a children's term rider when that child reaches a certain specified age? 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? 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? A. The policies continue in force with no change. Which of the following policies does NOT build cash value? Which of the following is true of the law of contracts? The present cash value of the policy equals $250,000. definitions What types of life insurance are normally used for key employee indemnification? Which of the following statements is true? Where would policy proceeds be paid if both the insured and primary beneficiary were killed in the same accident?
which of the following best describes a conditional insurance contract Insurance Multiple-Choice Questions Flashcards Preview - Brainscape 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. the contract must be aleatory C) Indemnity contract The present cash value of the policy equals $250,000.
Insurance Quiz (MCQs) Archives - Management Notes Who is responsible for assembling the policy forms for insureds? Tom's spouse Bob's estate Bob's spouse Tom, Which contract element is insurable interest a component of? 2 See answers y=f(x)=10x5x+1535if0x3if3
Which of the following best describes a symbol D) conditions, The authority granted to a licensed producer is provided via the The terms of the policy typically outline these conditions . be signed and witnessed by an attorney (A) Both parties to the contract are bound to the terms. Eventually, they retire and dissolve the business. Intent, The deeds and actions of a producer indicate what kind of authority? 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? 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) 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 Andy the annuitant dies before the annuity start date. which of the following best describes a conditional insurance contract? $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? Ron has a life insurance policy with a face value of $100,000 and a cost of living rider. C) the terms must be accepted or rejected in full 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? 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 C) fiduciary trust Aleatory Contract: A contract type in which the parties involved do not have to perform a particular action until a specific event occurs. Which type of annuity guarantees a stated number of income payments, whether or not the annuitant is still alive to receive them? A life insurance claim which involves a per capita distribution of policy proceeds would be payable to the. D) Risk insured against, A professional liability for which producers can be sued for mistakes of putting a policy into effect is called Intentional withholding of material facts that would affect an insurance policy's validity is called a(n). Because of this, an insurance contract is considered An insurance applicant with a below-average likelihood of loss is typically considered to be a. Insurance producer Jerry offers a $350 shopping card if they purchase an insurance product through him. Elizabeth is the beneficiary of a life insurance policy. Risk Hazard Indemnity Peril, Insurance companies determine risk exposure by which of the following? C) Materiality of concealment Only the insured pays the premium Which of the following best describes a symbol. An example of an unfair claims settlement practice is, Turning down a claim without providing the basis of denial. B) Offer and acceptance Which of these factors is NOT taken into account when determining an applicants life insurance needs? For a trip to the hospital, Evan Appleton paid $1,656 in hospital charges, a$750 insurance deductible, and a $457 co-payment. C) consideration The death benefit would be. Term insurance is appropriate for someone who, Seeks temporary protection and lower premiums. Orissa purchases a 10-year level term life insurance policy that has a death benefit of $200,000. When the principal gives the agent authority in writing, its referred to as, The terms must be accepted or rejected in full. The gap between the total death benefit and the policys cash value. 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) fiduciary bond A) A contract that requires certain conditions or acts by the insured individual performance is conditioned upon a future occurrence. be filed with the state Conditional Contracts: Everything You Need to Know - UpCounsel A(n) ________ investigates, negotiates, and settles claims for a few on behalf of an insurance company. Expert answered|Malekith22|Points 0| Log in for more information. B) Parent and children B) errors and omissions 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. What kind of policy is this? 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? An applicants character and personal habits can be obtained for underwriting purposes from which source? Which of these features are held exclusively by variable universal life insurance? Period of time after the initial premium is paid and before the policy is issued Period of time it takes for a policy's underwriting to complete Period of time after a policy is issued and before it is delivered to policyowner Period of time after the premium is due but the policy remains in force, Life insurance policies will normally pay for losses arising from commercial aviation war suicide hazardous jobs, A policyowner may exercise which of these dividend options that uses the dividend to pay all or part of the next premium due? When does a life insurance policy typically become effective? Modified Whole Life Decreasing Term Life Adjustable Life Whole Life, Decreasing term life insurance is often used to provide retirement funds provide coverage for a home mortgage accumulate cash value provide coverage for estate taxes, Which of these is NOT subject to income taxation under a Modified Endowment Contract (MEC)? How do marketers use insights regarding the self-concept? The annuitants life expectancy determines the annuity payments, No one may be denied coverage by an insurance company due to, A life insurance rider that allows an individual to purchase insurance as they grow older, regardless of insurability, is called a(n). C) The insured and the insurer contribute equally to the contract. Question. Which of the following is a requirement to attain an Utah resident producer license? How often must an insurance producers license in Utah be renewed? C) Contract must have a legal purpose C) aleatory promises made A) there is the potential for an unequal exchange of value the terms must be accepted or rejected in full Which of these statements is true? If thats the case, you dont have to worry anymore. A) definitions 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". 2003-2023 Chegg Inc. All rights reserved. discreet apparent implied express, Bob and Tom start a business. express authority A) offer and acceptance A bilateral contract is an agreement between two parties in which each side agrees to fulfill their side of the bargain. Required fields are marked *. 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? Definition refers to a description which is given to a word, idea or phenomenon . One-sided or unfair insurance contracts can, however, exist if they contain provisions that disproportionately benefit one party. ______ is NOT an element of a valid contract. 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. 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. Sister and brother Conditional insurance contracts are insurance policies that require the insured person to satisfy certain conditions in order to become effective and/or to be paid out by the insurer. Nothing $100,000 $250,000 $500,000, Which type of life insurance is normally associated with a Payor Benefit rider? 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 Rob purchased a standard whole life policy with a $500,000 death benefit when we was age 30. Corporations, like all firms, can raise money by borrowing from banks and other lending institutions. Which of the following is CORRECT regarding the death benefit amount? In most cases, the insured is. Cash surrender Extended term insurance Reduced paid-up insurance Life income annuity, Which type of rider will waive the premium on a child's life insurance policy if the parent paying the premium dies? 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. B) A contract that has the potential for the unequal exchange of consideration for both parties D) legal reserve, In an insurance contract, the element that shows each party is giving something of value is called imposed authority, In an insurance contract, the element that shows each party is giving something of value is called What are conditions in an insurance policy? B) A contract that has the potential for the unequal exchange of consideration for both parties. Which of the following statements about aleatory contracts is NOT true? A) A contract that requires certain conditions or acts by the insured individual A) insured Chapter 3: Legal Concepts Flashcards | Quizlet This legal agreement requires prior performance of another agreement or clause in order to be enforceable. The coverage, conditions, and limitations in the master policy of a group contract can be found in which document? Typically, bilateral contracts involve an equal obligation or. discreet A) A contract that requires certain conditions or acts by the insured individual. 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 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. Which of the following best defines diction? A. simile B - Weegy Death benefits Cash value Loading costs Separate account investments, Which policy feature makes a universal life policy different from a whole life policy? Premium clause A) producer's apparent authority 0 Answers/Comments. The terms of the policy typically outline these conditions, which may include paying premiums on time and maintaining the insured property in good condition. It is the means by which one or more parties bind themselves to certain promises. Which Of The Following Best Describes A Conditional Insurance Contract Plot this function and determine if she is ready to attempt the Bluenose Marathon. All of the following are examples of pure risk EXCEPT. An example of an unfair claims practice would be, Failing to effectuate prompt, fair, and fair equitable settlements of a claim. In most insurance policies, the insurer is the only one who makes a legally binding promise to pay insured claims. If xxx actually turns out to be 131313, what do you think of the claim? 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? A) underwriting Only the insurer is legally bound Which Of The Following Best Describes A Conditional Insurance Contract Which of the following best describes a conditional insurance contract Connect with others, with spontaneous photos and videos, and random live-streaming. C) negotiation between the involved parties 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. producer D) errors and oversights, In an insurance contract, the insurer is the only party legally obligated to perform. Because of this, an insurance contract is considered B) Contract of adhesion Which of the following best describes how you analyze a fiction text Variable life insurance and Universal life insurance are very similar. A) One party is restored to the same financial position the party was in before the loss occurred. B. What is this an example of? Which of the following is a TRUE statement? Before using an assumed name in Utah, a producer MUST, Maria would like an annuity that provides a guaranteed accumulation or payout. 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.
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