Which of the following BEST describes a conditional insurance contract? B) premium only Her son, Mike, is the beneficiary. C) Law of Agency What is the purpose for having an accelerated death benefit on a life insurance policy? C) aleatory In which form of corporate financing is the investor also an owner? Administrative actions taken against a producer must be reported to the Commissioner within ____ days. B) at the time of application Notify me of follow-up comments by email. An insurance applicant with a below-average likelihood of loss is typically considered to be a. 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? If threats or force is used to affect an insurance transaction, the unfair trade practice of __________ has been committed. Because of this, an insurance contract is considered 0 Answers/Comments. d. a deductible stated in the policy's provision. C) Insurance carriers The present cash value of the policy equals $250,000. 3. B) the contract must be aleatory B) Period to which the coverage exists Which of the following would be an act of Unfair Discrimination by an insurer? A) Unilateral With a life insurance contract, the insurer binds itself to pay a certain sum upon the death of the insured. Because of this, an insurance contract is considered When initial premium is collected and policy is issued. Rob recently died at age 60. A marathon is 42.2 kilometers. If xxx actually turns out to be 131313, what do you think of the claim? B) Equal consideration is required between the involved parties 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, Answer:A) A contract that requires certain conditions or acts by the insured individual. After 15 years, the cash value has accumulated to $100,000 and the policy's face amount has become $600,000. c) a contract must be in writing. Eventually, they retire and dissolve the business. A) offer and acceptance B) NAIC they are "take it or leave it" contracts. Corporations, like all firms, can raise money by borrowing from banks and other lending institutions. 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? Vegetable B. A) Legal A(n) ________ investigates, negotiates, and settles claims for a few on behalf of an insurance company. How many days is a temporary producers license valid? A) Express authority 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. The amount of his disability income payments for an on-the-job injury may be reduced by. weegy. b) a contract is an agreement enforceable at law. 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. What is the difference between insurance condition and warranty? 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 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. Returning a portion of a premium as inducement to purchase insurance, An applicant intentionally lying to an insurance company on an application in order to obtain a cheaper premium is an example of, Authority that is not specifically given to an agent in the agency contract, but that an agent can reasonably assume to carry out. B) conditional D) Utmost good faith, What does the insurance term "indemnity" refer to? Which of the following statements is TRUE? Zucchini is the best descriptive word. 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. The automatic premium loan provision authorized an insurer to withdraw from a policys cash value the amount of, Past due premiums that have not been paid by the end of the grace period. conditional Insurance interest does NOT occur in which of the following relationships? Which of the following statements about aleatory contracts is NOT true? C) the authority to represent the insurer 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". 30 seconds. B) A contract that has the potential for the unequal exchange of consideration for both parties. The most appropriate description ascribed to the meaning of definition from the options given is ; A precise statement of the qualities of an idea, object or process. 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). Within how many days must a licensee notify the Commissioner of a change in address? Bob dies 12 months later. 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. D) Intent, Which contract element is insurable interest a component of? C.$2,113 The face amount and policy premium are not affected by the payment Before payment of the benefit is made, specific conditions must exist, such as suffering from a terminal illness There may be a dollar limit on the maximum benefit The benefit can be offered as a rider at a specific extra cost or may be at no cost, Which of the following is NOT part of an insurance contract? B) Rescind the policy ______ is NOT an element of a valid contract. It is a nonprofit organization that maintains underwriting information on applicants for life and health insurance. A life insurance policyowner does NOT have the right to, Fixed annuities provide each of the following EXCEPT. The terms of the policy typically outline these conditions, which may include paying premiums on time and maintaining the insured property in good condition. Food C. Plant D. Zucchini. producer Express Apparent Implied Conditional, The type of multiple protection coverage that pays on the death of the last person is called a(n) joint life policy survivorship life policy annuity joint policy dual life policy, A nonforfeiture option can be used to increase the death benefit, All of these are valid options for an Adjustable Life Policy EXCEPT The policy's premium can be increased or decreased The policy's death benefit can be increased or decreased A nonforfeiture option can be used to increase the death benefit The policy's protection period can be modified, A life insurance contract which accumulates cash values higher than the IRS will allow, A Modified Endowment Contract (MEC) is best described as A life insurance contract which accumulates cash values higher than the IRS will allow An annuity contract which was converted from a life insurance contract A modified life contract which enjoys all the tax advantages of whole life insurance A life insurance contract where all withdrawals prior to age 65 are subject to a 10% penalty, An interest-sensitive life insurance policyowner may be able to withdraw the policy's cash value interest free. When handling premiums for an insured, an agent is acting in which capacity? Producers act in a(n) ________ capacity when holding insurance premiums. Risk Hazard Indemnity Peril, Insurance companies determine risk exposure by which of the following? Consideration clause representation Craig purchased a life insurance policy for enabling his heirs to pay estate taxes. 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? A life insurance claim which involves a per capita distribution of policy proceeds would be payable to the. 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? A) Parties involved in the contract Apparent A) the appearance of authority an insurer gives to its agent All of the following are examples of pure risk EXCEPT. The agent's obligation to provide the proper amount of coverage The insurer's obligation to return all premiums upon an approved death claim The insurer's obligation to pay a death benefit upon an approved death claim The agent's obligation to pay a death benefit upon an approved death claim, Of the following dividend options, which of these is taxable? c. income earned by Pat's spouse. Competent parties Offer and acceptance Consideration Legal purpose, What are an applicant's statements concerning occupation, hobbies, and personal health history regarded as? Proof of insurabiilty Changes in the insuring clause Premium increase Premium decrease, 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 these statements regarding the annuitant is CORRECT? 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. Barbaras policy includes a rider which allows her to purchase additional insurance at specific dates or events without evidence of insurability. Which of the following policies does NOT build cash value? What kind of policy is this? (D) Only one party is legally bound to the contract. 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 contract where only one party makes any kind of enforceable contract, statements made in the application and the premium, In a life or health insurance contract, "consideration" would be the offer and acceptance premium only statements made in the application and the premium statements made in the application only, 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 underwriting issuance of the policy promises made legal reserve, All of the following are elements of an insurance policy EXCEPT definitions other insurance claim forms conditions, The term which describes the fact that both parties of a contract may NOT receive the same value is referred to as Apparent Estoppel Aleatory Unilateral, Which of the following is an example of the insured's consideration? Only the insurer is legally bound Answer Explanation: A contract that requires certain conditions or acts by the insured individual. 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? An unintentional violation of Utah insurance law could lead a producer to a fine of up to _____ per violation. The power given to an individual producer that is not specifically addressed in his/her contract is considered what type of authority? A) Unilateral contract What was his total bill? D) Consideration, What are an applicant's statements concerning occupation, hobbies, and personal health history regarded as?
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