which of the following best describes a conditional insurance contract

B. 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? B) conditional During periods of inflation, annuitants will experience a decrease in purchasing power of their payments. What guarantees that the statements supplied by an insurance applicant are true? 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? D) Consideration, What are an applicant's statements concerning occupation, hobbies, and personal health history regarded as? D) Personal contract, The importance of a representation is demonstrated in what rule? Which option was chosen? It is not necessary for the parties to exchange unequal consideration in a conditional insurance contract. B) written contract 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) the appearance of authority an insurer gives to its agent If threats or force is used to affect an insurance transaction, the unfair trade practice of __________ has been committed. B) only one party (the insurer) makes any kind of legally enforceable promise B) at the time of application Which of the following does a producer NOT have a fiduciary responsibility to? What is the meaning of par value of stock with respect to the corporate form of organization? Notify me of follow-up comments by email. Competent parties A) implied authority Which statement is CORRECT when describing a contract of adhesion? Bob dies 12 months later. The death benefit would be. Corporations, like all firms, can raise money by borrowing from banks and other lending institutions. Accelerated death benefit An example of an unfair claims practice would be there must be an offer and acceptance In this situation, who will receive Bob's policy proceeds? 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. 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. A marathon is 42.2 kilometers. 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? Adjustable life policy Modified life policy Endowment policy Universal life policy, How are survivorship life insurance policies helpful in estate planning? 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. Aleatory Contract: A contract type in which the parties involved do not have to perform a particular action until a specific event occurs. 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)? Anheuser-Busch InBev is trying to reduce its water usage. 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. B) implied authority Which of the following BEST describes a conditional insurance contract? apparent authority 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 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. All of the following are examples of pure risk EXCEPT. One-sided or unfair insurance contracts can, however, exist if they contain provisions that disproportionately benefit one party. Legal purpose After a number of years, the policy's cash value accumulates to $50,000 and the face amount becomes $350,000. What are an applicants statements concerning occupation, hobbies, and personal health history regarded as? The insurers obligation to pay a death benefit upon an approved death claim. His insurance agent told him the policy would be paid up if he reached age 100. What kind of policy is this? Log in for more information. 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? A type of group that has a constitution and bylaws and has been organized for purposes other than obtaining insurance is called a(n). Premium clause 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. the terms must be accepted or rejected in full 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? Who is responsible for assembling the policy forms for insureds? B) Apparent The terms of the policy typically outline these conditions . How do insurers predict the increase of individual risks? His insurance agent told him the policy would be paid up if he reached age 100. C) claim forms D) errors and oversights, In an insurance contract, the insurer is the only party legally obligated to perform. B) producer Which of these would NOT be an unfair claims practice? GENERAL LAW OF CONTRACTS A contract is an agreement enforceable by law. 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) The gap between the total death benefit and the policys cash value. If the consumer price index had gone up 4%, how much may Ron increase the face value of the policy? 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 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 the following best describes how you analyze a fiction text? Which Of The Following Best Describes A Conditional Insurance Contract apparent 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. Rob recently died at age 60. B) A contract that has the potential for the unequal exchange of consideration for both parties 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). Life & Health 1 (Chapters 1, 2, 3, & 4) Flashcards Preview - Brainscape Can be converted to permanent coverage without evidence of insurability Coverage can be different for each child Premiums on this rider are not required until the limiting age is reached Increases the policy's overall cash value, Which type of policy combines the flexibility of a universal life policy with investment choices? She is receiving the death benefit in payments of $10,000 per month until the principal and interest has been paid out. Expert answered|Malekith22|Points 0| Log in for more information. A) underwriting Insurers must maintain files of all documents used for solicitation for ____ year(s) after the last authorizes date of use. See answers. Tom's spouse Bob's estate Bob's spouse Tom, Which contract element is insurable interest a component of? If xxx actually turns out to be 131313, what do you think of the claim? A) A contract that requires certain conditions or acts by the insured individual C) the contract has been prepared by one party (the insurance company) with no negotiation between the applicant and the insurer It is the means by which one or more parties bind themselves to certain promises. Orissa purchases a 10-year level term life insurance policy that has a death benefit of $200,000. Express Plot this function and determine if she is ready to attempt the Bluenose Marathon. A) Authority given in writing to an agent in the agency agreement D) statements made in the application only, C) statements made in the application and the premium, According to life insurance contract law, insurable interest exists 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. 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 policy provides a straight, level $100,000 of coverage for 5 years. a) a conditional acceptance allows the parties to negotiate the definite terms of the contract upon the completion of the contract. The policies continue in force with no change. Which of the following would be considered an underwriting duty of an agent? An example of an unfair claims practice would be, Failing to effectuate prompt, fair, and fair equitable settlements of a claim. 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. Principal Capacity, All of the following are elements of an insurance policy EXCEPT 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. Completing all applications and collecting initial premiums. there is the potential for an unequal exchange of value Under a life insurance policy, what does the insuring clause state? To see this page as it is meant to appear, please enable your Javascript! Because of this, an insurance contract is considered voidable conditional aleatory unilateral, Who is responsible for assembling the policy forms for insureds? Which of the following is an annuity that is linked to a market-related index? 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. In most insurance policies, the insurer is the only one who makes a legally binding promise to pay insured claims. Loans obtained by a policyowner against the cash value of a life insurance policy. B) acceptance C) Authority given to handle claims and process payments consideration Both partners are still married at the time of Bob's death. Which Of The Following Best Describes A Conditional Insurance Contract When the term insurance expires. D) Evident authority, Which of the following is an example of the insured's consideration? Bob dies 12 months later. $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? Consideration clause Definition refers to a description which is given to a word, idea or phenomenon . Shirley has a $500,000 10-year-non-renewable level term life policy. _______ is the authority given to a producer to transact business on behalf of the insurer. B) Equal consideration is required between the involved parties C) A contract where one party "adheres" to the terms of the contract Whole life policy that pays out its cash value over a 20 year period Whole life policy with premiums paid up after 20 years Term life policy that returns cash value after 20 years Term life policy with premiums paid up after 20 years, Which type of multiple protection policy pays on the death of the last person? Utah requires that an insurance producer must complete ___ hour(s) of continuing education on the subject of law and ethics every reporting period. Provide an opinion. Which of the following best defines diction? A. simile B - Weegy d) an agreement requires a definite offer and an indefinite acceptance. issuance of the policy A) estoppel When the principal gives the agent authority in writing, its referred to as, The terms must be accepted or rejected in full. Bob and Tom start a business. 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? This rider is called a(n). Nothing $100,000 $250,000 $500,000, Which type of life insurance is normally associated with a Payor Benefit rider? The policies continue in force with no change. D) only when determined by a judge, Xcel Chapter 3 Legal Concepts of the Insuranc, Chapter 3 Exam - Legal Concepts of the Insura, Chapter 4 Exam - Life Insurance - Types of Po, 4 - (Questions) Life Insurance Policies - Pro, Chapter 5: Life Insurance Premiums, Proceeds,, Chapter 4: Type of Insurance Policies Part 1, Chapter 4: Policy Provisions, Options and Rid, Calculus for Business, Economics, Life Sciences and Social Sciences, Karl E. Byleen, Michael R. Ziegler, Michae Ziegler, Raymond A. Barnett, Fundamentals of Engineering Economic Analysis, David Besanko, Mark Shanley, Scott Schaefer, The Cultural Landscape: An Introduction to Human Geography, AP Edition, Marketing Essentials: The Deca Connection, Carl A. Woloszyk, Grady Kimbrell, Lois Schneider Farese, Unit 7 AP Env. What does the Group Life underwriting risk selection process help protect insurance companies from? C) the terms must be accepted or rejected in full $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? The present cash value of the policy equals $250,000. The terms and conditions of insurance contracts should be carefully reviewed by policyholders before signing. D) legal reserve, In an insurance contract, the element that shows each party is giving something of value is called Chapter 3 Legal Concepts of the Insurance Contract - Quizlet c) a contract must be in writing. All of the following are examples of a Business Continuation Plan EXCEPT. Where would policy proceeds be paid if both the insured and primary beneficiary were killed in the same accident? Only the insured pays the premium B) Offer and acceptance Sharon is the policyowner of a $500,000 life insurance policy. C) representation Which of the following is the best descriptive word? Which of these legislation Acts is designed to protect consumers with guidelines regarding credit reporting and distribution? The policies continue in force with no change. unilateral, Ambiguities in an insurance policy are always resolved in favor of the Accelerated death benefit rider Waiver of premium rider Extended term option Decreasing term insurance. One-sided or unfair insurance contracts can, however, exist if they contain provisions that disproportionately benefit one party. Which military service exclusion clause would pay upon his death? Which type of life insurance policy is this? The policy may be paid up early by using policy dividends. The terms of the policy typically outline these conditions, which may include paying premiums on time and maintaining the insured property in good condition. A) there must be an offer and acceptance Rob purchased a standard whole life policy with a $500,000 death benefit when we was age 30. A) Express Sister and brother Which of the following is a reinstatement condition?