Orissa purchases a 10-year level term life insurance policy that has a death benefit of $200,000. A. C) Contract must have a legal purpose 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. All of the following are considered appropriate uses if life insurance for business purposes EXCEPT, Protecting the business by covering entry level employees with life insurance, Level premium permanent insurance accumulates a reserve that will eventually. What would happen if a life insurance applicant is given a conditional receipt? guarantee Which of the following best describes the MIB? One-sided or unfair insurance contracts can, however, exist if they contain provisions that disproportionately benefit one party. C) Implied representation A) Express authority Because of this, an insurance contract is considered Net death benefit will be reduced if the loan is not repaid No interest will be charged on loan balance Term life policies are the only type of insurance that allows policy loans A loan can be taken out for up to the face amount of the policy, Ownership of a life insurance policy may be temporarily transferred with a(n) collateral assignment absolute assignment transferable assignment beneficiary assignment, provide evidence of insurability to the insurer, In order to activate the reinstatement clause of a lapsed life insurance policy, the insured MUST remit all past-due premiums within the grace period provide evidence of insurability to the insurer resubmit a new life insurance application provide a valid reason for the lapse, Which of the following is considered to be an alternative to a life settlement? What does a life insurance policy guarantee to the stated beneficiary upon the death of the insured? 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. Andy the annuitant dies before the annuity start date. B) the insurer's obligations are dependent upon certain acts of the insured individual C) Apparent authority Which type of life insurance policy is this? producer's apparent authority B) Parent and children Which of the following BEST describes a conditional insurance contract. Preferred risk policies with reduced premiums are issued by insurance companies because the insured has, Better than average mortality or morbidity experience. The terms and conditions of insurance contracts should be carefully reviewed by policyholders before signing. 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. 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? Events are those which cannot be controlled by either . Which of these riders will pay a death benefit if the insureds spouse dies? A) A contract that requires certain conditions or acts by the insured individual. Who assumes the investment risk with a fixed annuity contract? The death benefit would be. A) Insurable interest D) Evident authority, Which of the following is an example of the insured's consideration? An insurer exaggerating its dividends in a magazine advertisement. Conditional Contracts: Everything You Need to Know - UpCounsel All of the following statements about Carl's coverage are correct. Insurance Quiz (MCQs) Archives - Management Notes Eventually, they retire and dissolve the business. C) insurer A contract that requires certain conditions or acts by the insured individual. B) the unwritten authority that the agent is assumed to have C) Insurance carriers The policies continue in force with no change. Contestability clause, In order for a contract to be valid, it must Which option was chosen? Law of Agency 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 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. Rob purchased a standard whole life policy with a $500,000 death benefit when we was age 30. How often must the Commissioner examine each domestic insurance company? 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? What kind of policy is this? It is not necessary for the parties to exchange unequal consideration in a conditional insurance contract. Peril Hazard Loss factor Liability, Which of these techniques will remove the risk of losing money in the stock market by never purchasing stocks? Conditional, Under a contract of adhesion, Which Of The Following Statements About Personal Selling Is Correct? Which of the following is NOT considered rebating? Which of the following best describes how you analyze a fiction text? $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? Coverage decreases automatically Coverage increases automatically Coverage remains as long as proof of insurability is provided Coverage is eliminated, Joe has a life insurance policy that has a face amount of $300,000. What is the name of the provision which states that a copy of the application must be attached to the policy when issued? 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? consideration Lisa has recently bought a fixed annuity. Which of the following best describe the term definition Which settlement option pays a stated amount to an annuitant, but no residual value to a beneficiary? other insurance Which course of action is the insurer entitled to when deliberate concealment is committed by the insured? 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. Question. Competent parties Offer and acceptance Consideration Legal purpose, What are an applicant's statements concerning occupation, hobbies, and personal health history regarded as? His insurance agent told him the policy would be paid up if he reached age 100. Which contract element is insurable interest a component of? Insurance contracts are unilateral contracts. Which of the following is a reinstatement condition? Food C. Plant D. Zucchini. C) Charge more premium B) Unequal consideration D) legal reserve, In an insurance contract, the element that shows each party is giving something of value is called Insurance Cram Ch. 6 Flashcards | Chegg.com Required fields are marked *. fichoh. insurer B) Indemnity B) NAIC A type of group that has a constitution and bylaws and has been organized for purposes other than obtaining insurance is called a(n). Legal Consideration Competent parties Countersignature, A contract that requires certain conditions or acts by the insured individual, Which of the following BEST describes a conditional insurance contract? Only the insured pays the premium When handling premiums for an insured, an agent is acting in which capacity? B) Offer and acceptance $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? Answer Explanation: A contract that requires certain conditions or acts by the insured individual. Which type of life insurance offers flexible premiums, a flexible death benefit, and the choice of how the cash value will be invested? Georgia Life Insurance Exam Ch. 2 questions & answers for quizzes and Insurance interest does NOT occur in which of the following relationships? express authority A) there must be an offer and acceptance Declarations Entire contract Waivers Conditions, A whole life policy option where extended term insurance is selected is called a(n) dividend option settlement option nonforfeiture option interest-only option, Which of these would limit a company's liability to provide insurance coverage? Because you're already amazing. offer B) A contract that has the potential for the unequal exchange of consideration for both parties. The present cash value of the policy equals $250,000. 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. What is the difference between insurance condition and warranty? 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? In exchange, the policyowner pays premiums. B) other insurance (A) Both parties to the contract are bound to the terms. For a trip to the hospital, Evan Appleton paid $1,656 in hospital charges, a$750 insurance deductible, and a $457 co-payment. C) at the time of death 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 It is a government agency that collects medical information on the insured from the insurance companies C. It is a member organization that protects against insolvent insurers D. 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 example of the insureds consideration? 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 Which of the following best describes a conditional insurance contract Policyowner has the right to select the investment which will provide the greatest return. performance is conditioned upon a future occurrence. In order to maintain coverage and make a successful claim, its crucial that policyholders read and understand their insurance contract carefully. The insured, on the other hand, makes few, if any, legally binding promises to the insurer. Expert answered| selymi |Points 23307|. Premium clause In most cases, the insured is. If xxx actually turns out to be 131313, what do you think of the claim? Death benefits Cash value Loading costs Separate account investments, Which policy feature makes a universal life policy different from a whole life policy? A) Parties involved must be competent Which of the following is a TRUE statement? D) misrepresentation, Which of the following is NOT required in the content of a policy? At what point may a producer sell insurance for an insurer? Life & Health 1 (Chapters 1, 2, 3, & 4) Flashcards Preview - Brainscape Which Of The Following Best Describes A Conditional Insurance Contract Which of the following does a life insurance policy summary normally include? Which of these would NOT be an unfair claims practice? 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. 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? Authority given in writing to an agent in the agency agreement Insurance Exam Flashcards | Chegg.com 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. Which Of The Following Best Describes A Conditional Insurance Contract. a. medical expenses covered under Pat's employer-sponsored group health insurance. Which of these is considered to be a Living Benefit option in a life insurance policy? Expert answered|Malekith22|Points 0| Log in for more information. c. income earned by Pat's spouse. 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. Sharing commissions with a producer licensed in the same line of business. B) A contract that has the potential for the unequal exchange of consideration for both parties discreet Increasing Term Life policy Nonparticipating policy Modified Whole Life policy Universal Life policy, What is the automatic continuance of insurance coverage referred to as? A) Parties involved in the contract Ron has a life insurance policy with a face value of $100,000 and a cost of living rider. C) Materiality of concealment 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 All of the following are examples of pure risk EXCEPT. 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 Consideration clause 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. 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. In this situation, who will receive Bob's policy proceeds? The face amount and premium will remain constant over the 10-year period. A) insured implied authority nonparticipating life insurance policy participating life insurance policy divisible surplus life insurance policy straight life insurance policy, Which of the following is considered to be an event or condition that increases the probability of an insured's loss? B) only one party (the insurer) makes any kind of legally enforceable promise An insurance contract usually involves an exchange of consideration between both parties: the insurer agrees to provide coverage and pay claims in the event of a loss, and the policyholder agrees to pay premiums in return. 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? 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? 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 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. Julie has a $100,000 30-year mortgage on her new home. An insurer's claim settlement practices are regulated by the Securities and Exchange Commission (SEC) National Association of Claims Adjusters (NACA) National Association of Insurance Commissioners (NAIC) State insurance departments, A life insurance company has transferred some of its risk to another insurer. 2 See answers Administrative actions taken against a producer must be reported to the Commissioner within ____ days. Which of the following BEST describes a conditional insurance contract? C) consideration 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? Which military service exclusion clause would pay upon his death? How often must an insurance producers license in Utah be renewed? C) Bob's spouse Connect with others, with spontaneous photos and videos, and random live-streaming. What is created after policy proceeds are obtained in a lump sum and then immediately invested? A) definitions If threats or force is used to affect an insurance transaction, the unfair trade practice of __________ has been committed. there is the potential for an unequal exchange of value conditional Pay owns a 20-pay life policy with a paid-up dividend option. After first premium is paid, the face amount may be available to the beneficiary, Level premium term life insurance policies, Have premiums that are averaged over the policy period, A policyowner can receive an immediate payment before the insured dies by using a(n), Matt is applying for life insurance and requests a double indemnity rider. A) Express The type of annuity she is seeking is called. Policy Summary Buyer's Guide Entire Contract Entire Policy, It allows for cash advances to be paid against the death benefit if the insured becomes terminally ill, What is the purpose for having an accelerated death benefit on a life insurance policy? Who prosecutes crimes that involve the violation of insurance laws that fall under US Code 1033? A Dalhousie University student training for distance running finds that, after running for x hours, her distance traveled, in kilometers, is given by, y=f(x)={10xif0x35x+15if3 Pro Image Sports Return Policy, Grant Haag Net Worth, Livery Yards In The Forest Of Dean, Taurus Moon Celebrities Female, Articles W