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? Which of the following best describes how you analyze a fiction text A contract that requires certain conditions or acts by the insured individual. 1 pt. 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 Under the Fair Credit Reporting Act, what is the maximum penalty that may be imposed on Ken? B) the insurer's obligations are dependent upon certain acts of the insured individual In most insurance policies, the insurer is the only one who makes a legally binding promise to pay insured claims. Which of these is considered to be a Living Benefit option in a life insurance policy? C) there must be legal reasons for entering into the contract Which of the following Best Describes a Conditional Insurance Contract A) estoppel Which of the following BEST describes a conditional insurance contract? ______ is NOT an element of a valid contract. discreet A) A contract that requires certain conditions or acts by the insured individual The policies continue in force with no change. Insurable interest can be based on the love and affection of individuals related by blood or law An applicant intentionally lying to an insurance company on an application in order to obtain a cheaper premium is an example of 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. Because of this, an insurance contract is considered Dorian exercises a nonforfeiture option by using his life policys cash value to purchase an extended term insurance option. Which of the following products would allow him to accomplish this? 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B) Consideration C) Legal purpose A(n) ________ investigates, negotiates, and settles claims for a few on behalf of an insurance company. which of the following best describes a conditional insurance contract 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. How often must an insurance producers license in Utah be renewed? 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 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? Bob dies 12 months later. A) Insurability Which of the following is a TRUE statement? consideration Contestability clause, In order for a contract to be valid, it must What is the difference between insurance condition and warranty? be in writing Authority given to handle claims and process payments 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? Term, whole, and universal life insurance. During periods of inflation, annuitants will experience a decrease in purchasing power of their payments. Connect with others, with spontaneous photos and videos, and random live-streaming. Determine which insurer offers the best rates Determine which insurer offers the best policies Determine financial strength of an insurance company Determine which agent to use locally, A nonparticipating policy will provide a return of premium provide tax advantages not pay dividends give policyowners special privileges, A rating from a rating service company, such as A.M. Best, Which of the following is NOT considered advertising? 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. A) Authority given in writing to an agent in the agency agreement How do marketers use insights regarding the self-concept? warranty guarantee representation collateral, there must be legal reasons for entering into the contract, Legal purpose is a term used in contract law meaning there must be an offer and acceptance the contract must be aleatory there must be legal reasons for entering into the contract the contract must be a contract of adhesion, In an insurance contract, the element that shows each party is giving something of value is called offer acceptance consideration purpose, What makes an insurance policy a unilateral contract? In the case of an insurance contract, the contracting parties are the claimant and the insurer. D) imposed authority, What makes an insurance policy a unilateral contract? If she dies 15 years after the policy's inception date, how much will her beneficiary receive? What Benefit Does The Payor Clause On A Juvenile Life Policy Provide? C) Authority given to handle claims and process payments Which settlement option pays a stated amount to an annuitant, but no residual value to a beneficiary? 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? _______ is the authority given to a producer to transact business on behalf of the insurer. 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. C) Apparent authority Insurance Quiz (MCQs) Archives - Management Notes 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. When does a life insurance policy typically become effective? C) Law of large numbers the terms must be accepted or rejected in full C) A contract where one party "adheres" to the terms of the contract. 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? D) Countersignature, 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 only one party makes any kind of enforceable promise, the terms must be accepted or rejected in full, 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". Which of the following is an annuity that is linked to a market-related index? Which of these features are held exclusively by variable universal life insurance? A marathon is 42.2 kilometers. B) conditional LIFE INSURANCE LICENSING EXAM Flashcards | Chegg.com What kind of policy is this? The amount of his disability income payments for an on-the-job injury may be reduced by. Which of the following BEST describes a conditional insurance contract? What would happen if a life insurance applicant is given a conditional receipt? An unintentional violation of Utah insurance law could lead a producer to a fine of up to _____ per violation. After a number of years, the policy's cash value accumulates to $50,000 and the face amount becomes $350,000. D. $2,863. Q. Which of the following BEST describes a conditional insurance contract? Her son, Mike, is the beneficiary. 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. a) a conditional acceptance allows the parties to negotiate the definite terms of the contract upon the completion of the contract. A) express authority 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? It is not necessary for the parties to exchange unequal consideration in a conditional insurance contract. WINDOWPANE is the live-streaming app for sharing your life as it happens, without filters, editing, or anything fake. Orissa purchases a 10-year level term life insurance policy that has a death benefit of $200,000. Which type of multiple protection policy pays on the death of the last person? Naming a contingent beneficiary as all surviving children is described as which term? B) at the time of application representation (A) Both parties to the contract are bound to the terms. 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? Ken is a producer who has obtained Consumer Informations Reports under false pretenses. C) adhesion C) Competent parties Preferred risk policies with reduced premiums are issued by insurance companies because the insured has, Better than average mortality or morbidity experience. C) the terms must be accepted or rejected in full Under a life insurance policy, what does the insuring clause state? If Mike dies first, the policy proceeds will no longer provide insurance protection will go to Mike's estate will be divided by probate will not be paid until the last brother dies, The gap between the total death benefit and the policy's cash value, What is a corridor in relation to a Universal Life insurance policy? Only the insured pays the premium Bob and Tom start a business. Intent, The deeds and actions of a producer indicate what kind of authority? conditions, Legal purpose is a term used in contract law meaning Typically, bilateral contracts involve an equal obligation or. A) when any business relationship exists A symbol is a mark, sign or word that indicates, signifies, or is understood as representing an idea, object, or relationship, best describes a symbol. Accelerated death benefit rider Waiver of premium rider Extended term option Decreasing term insurance. 2. 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 order to maintain coverage and make a successful claim, its crucial that policyholders read and understand their insurance contract carefully. Bob dies 12 months later. Which of these statements regarding the annuitant is CORRECT? Restoring an insured to the same condition as before a loss is an example of the principle of. Which of the following policies does NOT build cash value? C) Law of Agency The power given to an individual producer that is not specifically addressed in his/her contract is considered what type of authority? Which of the following statements correctly describes a contract of indemnity? Free Flashcards about Stack #2476860 - StudyStack A. How soon can the benefit payments begin with a deferred annuity? B) Rescind the policy This is also known as a non-negotiable insurance contract, or an automatic contract. How do insurers predict the increase of individual risks? What is the advantage of adding this rider? How often must the Commissioner examine each domestic insurance company? Who is responsible for assembling the policy forms for insureds? 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. C) insurer The gap between the total death benefit and the policy's cash value The gap between when a claim is filed and when the death benefit is received The amount of interest that has accumulated in the policy's cash value The point in time when the policy's cash value reaches $0, Rob purchased a standard whole life policy with a $500,000 death benefit when he was age 30. Required fields are marked *. Please check below to know the answer. D) Utmost good faith, What does the insurance term "indemnity" refer to? Which Of The Following Best Describes A Conditional Insurance Contract A person who is a nonsmoker, of average weight, and in excellent health would most likely be in which risk classification? All of the following statements about Carl's coverage are correct. purpose, Insurable interest does NOT occur in which of the following relationships? Definition refers to a description which is given to a word, idea or phenomenon . 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). The coverage, conditions, and limitations in the master policy of a group contract can be found in which document? C) Business partners Only the insurer is legally bound 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? D) Tom, The deeds and actions of a producer indicate what kind of authority? Which of the following is NOT considered rebating? After 15 years, the cash value has accumulated to $100,000 and the policy's face amount has become $600,000. The policies continue in force with no change. Write a summary of the main ideas. B) only an offer Loans obtained by a policyowner against the cash value of a life insurance policy. What are an applicants statements concerning occupation, hobbies, and personal health history regarded as? B) premium only Who prosecutes crimes that involve the violation of insurance laws that fall under US Code 1033? She is receiving the death benefit in payments of $10,000 per month until the principal and interest has been paid out. All of these are typically sources of underwriting information for life or health insurance EXCEPT. B) A paid premium B) Parent and children Risk Hazard Indemnity Peril, Insurance companies determine risk exposure by which of the following? To see this page as it is meant to appear, please enable your Javascript! Who assumes the investment risk with a fixed annuity contract? What does a life insurance policy guarantee to the stated beneficiary upon the death of the insured? According to the Affordable Care Act (ACA), insurers can no longer deny health coverage due to pre-existing conditions unless that plan is a (n) Grandfathered plan Accident plan Individual plan Group plan Grandfathered plan Insurance Cram Ch. 6 Flashcards | Chegg.com All of the following are examples of a Business Continuation Plan EXCEPT. D) unilateral, Who is responsible for assembling the policy forms for insureds? B) Law of adhesion Active Status Results Leave, A provision that allows a policyowner to temporarily give up ownership rights to secure a loan is called a(n) automatic premium loan nonforfeiture option collateral assignment irrevocable assignment, Period of time after the premium is due but the policy remains in force, What is an insurance policy's grace period? 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. 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 What is the purpose for having an accelerated death benefit on a life insurance policy? Are you looking for the correct answer to the question Which of the following BEST describes a conditional insurance contract?? Pay owns a 20-pay life policy with a paid-up dividend option. If the insured dies at any time during the 5 years, his beneficiary will receive the policy's face value. When the principal gives the agent authority in writing, its referred to as, The terms must be accepted or rejected in full. Adjustable whole life Universal life Decreasing term life Limited whole life, Which type of life insurance policy pays the face amount at the end of the specified period if the insured is still alive? The insured, on the other hand, makes few, if any, legally binding promises to the insurer. Dependent term Guaranteed insurability Primary term Family term, Which type of life insurance offers flexible premiums, a flexible death benefit, and the choice of how the cash value will be invested? 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. if the insured lives beyond the 5 years, no benefits are payable. Which of the following statements is true? In this situation, who will receive Bob's policy proceeds? An individual who removes the risk of losing money in the stock market by never purchasing stocks is said to be engaging in. A conditional contract, also called a hypothetical contract, is a contract agreement that only requires performance once the delineated conditions are met. D) legal reserve, In an insurance contract, the element that shows each party is giving something of value is called D) Intent, Which contract element is insurable interest a component of? 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? Question and answer. 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? A) Make whole B) A contract that has the potential for the unequal exchange of consideration for both parties A new stain removal product claims to completely remove the stains on 909090 percent of all stained garments. Which of the following BEST describes a conditional insurance contract. Both partners are still married at the time of Bob's death. D) an offer and acceptance of the contract terms, D) an offer and acceptance of the contract terms, In an insurance contract, the applicant's "consideration" is the Which scenario would most life insurance policies exclude coverage for? D) conditions, The authority granted to a licensed producer is provided via the Georgia Life Insurance Exam Ch. 2 questions & answers for quizzes and A life insurance claim which involves a per capita distribution of policy proceeds would be payable to the. GENERAL LAW OF CONTRACTS A contract is an agreement enforceable by law. Administrative actions taken against a producer must be reported to the Commissioner within ____ days. A) there is the potential for an unequal exchange of value B) Indemnity Andy the annuitant dies before the annuity start date. 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? 30 seconds. A) Legal the contract must be aleatory apparent 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? Policy loans are disallowed The premium payments will be tax deductible Pre-death distributions are typically taxable Withdrawals will be prohibited, When a whole life policy is surrendered, income taxes may be owed, All of these statements concerning whole life insurance are false EXCEPT Policyowner can take out a policy loan up to the face amount When a whole life policy is surrendered, income taxes may be owed Coverage is normally temporary The death benefit is not affected by outstanding loans, A life insurance policy which contains cash values that vary according to its investment performance of stocks is called Increasing Term Life Modified Whole Life Variable Whole Life Adjustable Whole Life, Which of these riders will pay a death benefit if the insured's spouse dies? Which of the following best defines diction? A. simile B - Weegy collateral, What is implied authority defined as? The death benefit would be $250,000 $750,000 $375,000 $500,000, What does the word "level" in Level Term describe? imposed authority, In an insurance contract, the element that shows each party is giving something of value is called A) State Insurance Departments 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".

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