D) imposed authority, What makes an insurance policy a unilateral contract? B) Consideration Required fields are marked *. insurer Food C. Plant D. Zucchini. Death benefits Cash value Loading costs Separate account investments, Which policy feature makes a universal life policy different from a whole life policy? 2003-2023 Chegg Inc. All rights reserved. Only the insurer is legally bound Dorian exercises a nonforfeiture option by using his life policys cash value to purchase an extended term insurance option. D) Risk insured against, A professional liability for which producers can be sued for mistakes of putting a policy into effect is called WINDOWPANE is the live-streaming app for sharing your life as it happens, without filters, editing, or anything fake. 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? Which of the following best describes a symbol. (D) Only one party is legally bound to the contract. A) A contract that requires certain conditions or acts by the insured individual Insurance contracts are unilateral contracts. 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) In which form of corporate financing is the investor also an owner? Which of these would NOT be an unfair claims practice? Life & Health 1 (Chapters 1, 2, 3, & 4) Flashcards Preview - Brainscape The above question Which of the following BEST describes a conditional insurance contract?, Was part of Insurance MCQs & Answers. Insurance Quiz (MCQs) Archives - Management Notes Key elements of Organizational Behavior - People, Structure ,Technology & External Environment | Organizational Behavior, Penology - Meaning, Types, Importance, Scope and Example | Sociology, Karmachari Sanchaya Kosh - | Employees Provident Fund Nepal, Perceptual Errors -Types of Perceptual Error | Fundamentals of Organizational Behaviour, Difference between Manufacturing and Service Operations | Operation Management. 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. Which Of The Following Best Describes A Conditional Insurance Contract. Which of the following best describe the term definition. renewal reinstatement resumption renovation, the MEC tends to be an investment vehicle, Pre-death distributions from a modified endowment contract (MEC) receive different tax treatment than other life insurance policies because the MEC has tax deductible premiums the MEC is considered an illegal product the MEC tends to be an investment vehicle the MEC does not accumulate cash value, The face amount and premium will remain constant over the 10-year period, Krissa purchases a 10-year level term life insurance policy that has a death benefit of $200,000. An applicants character and personal habits can be obtained for underwriting purposes from which source? Typically, bilateral contracts involve an equal obligation or. How soon can the benefit payments begin with a deferred annuity? 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 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"? When does a life insurance policy typically become effective? Aleatory Contract Definition, Use in Insurance Policies - Investopedia D) legal reserve, In an insurance contract, the element that shows each party is giving something of value is called The principle of insurable interest, in regards to a life insurance contract, is accurately described in which statement? Which market index is normally associated with an indexed annuitys rate of return? Describe the structure. Who assumes the investment risk with a fixed annuity contract? How does life insurance create an immediate estate? 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 B) Contract of adhesion An individual who has a hobby racing cars once a month. What kind of policy is this? All of the following statements about Carl's coverage are correct. A) warranty A) Only the insured pays the premium producer Which of the following best describes a conditional insurance contract A) State Insurance Departments What is a corridor in relation to a Universal Life insurance policy? B) Implied authority An individual who removes the risk of losing money in the stock market by never purchasing stocks is said to be engaging in. Answer Explanation: A contract that requires certain conditions or acts by the insured individual. Sharon is the policyowner of a $500,000 life insurance policy. Andy the annuitant dies before the annuity start date. 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. Intentional withholding of material facts that would affect an insurance policy's validity is called a(n). 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). claim forms Provide an opinion. Which of the following is true of the law of contracts? 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? Loan against the cash value Policy withdrawal Policy dividend Death benefit, A business will typically use which type of life insurance to cover their employees? A. B) A contract that has the potential for the unequal exchange of consideration for both parties. In this situation, who will receive Bob's policy proceeds? 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 Zucchini is the best descriptive word. A minimum of 12 months after date of purchase, Insurance premium is determined by each of the following factors EXCEPT. 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? What are an applicants statements concerning occupation, hobbies, and personal health history regarded as? Loans obtained by a policyowner against the cash value of a life insurance policy. 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. Which type of life insurance policy is this? __________. Connect with others, with spontaneous photos and videos, and random live-streaming. C) Competent parties Joint life policy Survivorship life policy Dual life policy Multiple life policy, A life insurance policy that contains a guaranteed interest rate with the chance to earn a rate that is higher than the guaranteed rate is called whole life group life credit life universal life, Can be converted to permanent coverage without evidence of insurability, Donald is the primary insured of a life insurance policy and adds a children's term rider. The insurers obligation to pay a death benefit upon an approved death claim. (C) Both parties exchange goods of equal value. (B) Both parties adhere to the contract. $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? AzAnswer team is here with the right answer to your question. A) Competent parties B. 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. Naming a contingent beneficiary as all surviving children is described as which term? Which of these statements is true? 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. In most insurance policies, the insurer is the only one who makes a legally binding promise to pay insured claims. Business partners express authority Preferred risk policies with reduced premiums are issued by insurance companies because the insured has, Better than average mortality or morbidity experience. Which of the following is NOT considered rebating? Please check below to know the answer. Which of these is considered to be a Living Benefit option in a life insurance policy? 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". Competent parties 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. Which of the following best describes how you analyze a fiction text? Insurance Exam Flashcards | Chegg.com Chapter 3 Legal Concepts of the Insurance Contract - Quizlet What Benefit Does The Payor Clause On A Juvenile Life Policy Provide? A contract that requires certain conditions or acts by the insured individual. If Sharon MUST obtain Mikes signature in order to change the beneficiary, what kind of beneficiary designations is this? Because of this, an insurance contract is considered 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 Competent parties Offer and acceptance Consideration Legal purpose, What are an applicant's statements concerning occupation, hobbies, and personal health history regarded as? 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. Orissa purchases a 10-year level term life insurance policy that has a death benefit of $200,000. A) insured The present cash value of the policy equals $250,000. All of these are typically sources of underwriting information for life or health insurance EXCEPT. A) Make whole A life insurance policy that is subject to a contract interest rate is referred to as. Completing all applications and collecting initial premiums. C) the terms must be accepted or rejected in full C) Aleatory His insurance agent told him the policy would be paid up if he reached age 100. Which of the following BEST describes a conditional insurance contract? D) underwriter, Reasonably necessary acts that an agent must perform for carrying out his/her expressly authorized duties are covered by an agent's (A) Both parties to the contract are bound to the terms. Which of the following Best Describes a Conditional Insurance Contract Sister and brother Parent and children Business partners Business owner and business client, The deeds and actions of a producer indicate what kind of authority? In order to maintain coverage and make a successful claim, its crucial that policyholders read and understand their insurance contract carefully. Under the Fair Credit Reporting Act, what is the maximum penalty that may be imposed in Ken? 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? promises made Eventually, they retire and dissolve the business. D) Evident authority, Which of the following is an example of the insured's consideration? Accelerated death benefit rider Waiver of premium rider Extended term option Decreasing term insurance. What is this called? The type of annuity she is seeking is called. Rob purchased a standard whole life policy with a $500,000 death benefit when we was age 30. offer D) Utmost good faith, What does the insurance term "indemnity" refer to? The policy may be paid up early by using accumulated cash values The policy may be paid up early by using policy dividends The policy's premiums will increase after 20 years The policy's cash values steadily decrease after 20 years, the policy would be payable, minus the premium amount, If an insured dies during the grace period with no premiums paid the policy would be payable, minus the premium amount the policy would be payable only after the beneficiary makes past due premium payment all past premiums will be refunded with interest the claim would be denied, In what part of an insurance policy are policy benefits found? D) Intent, Which contract element is insurable interest a component of? Rob recently died at age 60. B) acceptance After 15 years, the cash value has accumulated to $100,000 and the policy's face amount has become $600,000. Sorry, you have Javascript Disabled! A) Authority given in writing to an agent in the agency agreement A policyowner is prohibited from making any changes to the policy without the beneficiarys written consent under which beneficiary designation? A unilateral contract is one in which only one party makes a legally binding guarantee.
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