Shirley has a $500,000 10-year-non-renewable level term life policy. D) Only the insured is legally bound, Bob and Tom start a business. Intent, The deeds and actions of a producer indicate what kind of authority? D) unilateral, Who is responsible for assembling the policy forms for insureds? 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. C.$2,113 However, corporations also can raise money by selling bonds or issuing additional shares of stock. This is also known as a non-negotiable insurance contract, or an automatic contract. the policy provides a straight, level $100,000 of coverage for 5 years. Which of the following BEST describes a conditional insurance contract? 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. Adjustable life policy Modified life policy Endowment policy Universal life policy, How are survivorship life insurance policies helpful in estate planning? there is the potential for an unequal exchange of value Which of these features are held exclusively by variable universal life insurance? Which of the following is an example of the insureds consideration? His insurance agent told him the policy would be paid up if he reached age 100. 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. 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. How could a company manager use a process cost summary to determine if the program to reduce water usage is successful? C) negotiation between the involved parties B) Unequal consideration 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. $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? __________. Answer Explanation: A contract that requires certain conditions or acts by the insured individual. With a life insurance contract, the insurer binds itself to pay a certain sum upon the death of the insured. Connect the text to your own experiences. A life insurance claim which involves a per capita distribution of policy proceeds would be payable to the. Only the insured can change the provisions An example of an unfair claims practice would be, Failing to effectuate prompt, fair, and fair equitable settlements of a claim. Sharing commissions with a producer licensed in the same line of business. A) underwriting A) Only the insured pays the premium Updated 10/6/2017 9:10:03 AM. A) when any business relationship exists Ken is a producer who has obtained Consumer Informations Reports under false pretenses. Adjustable life insurance Decreasing term insurance Increasing term insurance Modified life insurance, A spouse and child can be added to the primary insured's coverage as what kind of rider? How do insurers predict the increase of individual risks? A) Sister and brother A) there is the potential for an unequal exchange of value 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". C) Contract must have a legal purpose How do marketers use insights regarding the self-concept? 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? C) representation Write a summary of the main ideas. 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? 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. After being properly appointed by the insurer. An individual who has a hobby racing cars once a month. Karen is a producer who has obtained personal information about a client without having a legitimate reason to do so. All of the following are examples of pure risk EXCEPT. Describe the structure. Have a great time ahead. 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. D) Consideration clause, When the principal gives the agent authority in writing, it's referred to as Eventually, they retire and dissolve the business. 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? B) Equal consideration is required between the involved parties In this situation, who will receive Bob's policy proceeds? Advertisement. If the annuitant dies before the annuity start date, The premiums paid plus interest earned will be given to the beneficiary, Anyone who makes a fraudulent statement on an insurance application in order to obtain benefits from an insurance company. C) Aleatory C) Probability of loss 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. B) concealment A type of group that has a constitution and bylaws and has been organized for purposes other than obtaining insurance is called a(n). Which of the following is an annuity that is linked to a market-related index? 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? Express Are you looking for the correct answer to the question Which of the following BEST describes a conditional insurance contract?? Utah requires that an insurance producer must complete ___ hour(s) of continuing education on the subject of law and ethics every reporting period. Premium clause 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. Within how many days must a licensee notify the Commissioner of a change in address? Accelerated death benefit rider Waiver of premium rider Extended term option Decreasing term insurance. This legal agreement requires prior performance of another agreement or clause in order to be enforceable. The amount of his disability income payments for an on-the-job injury may be reduced by. 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? 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) there is an element of chance and potential for unequal exchange of value or consideration for both parties 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. D) Evident authority, Which of the following is an example of the insured's consideration? How often must an insurance producers license in Utah be renewed? Before using an assumed name in Utah, a producer MUST, Maria would like an annuity that provides a guaranteed accumulation or payout. A) Legal B) the unwritten authority that the agent is assumed to have 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. 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? I hope you got the correct answer to your question. AzAnswer team is here with the right answer to your question. C) the contract has been prepared by one party (the insurance company) with no negotiation between the applicant and the insurer Legal If she dies 15 years after the policy's inception date, how much will her beneficiary receive? Under a life insurance policy, what does the insuring clause state? The type of annuity she is seeking is called. 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? 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? B) Offer and acceptance Insurers must maintain files of all documents used for solicitation for ____ year(s) after the last authorizes date of use. Authority given to handle claims and process payments Ron has a life insurance policy with a face value of $100,000 and a cost of living rider. When does a life insurance policy typically become effective? 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. Eventually, they retire and dissolve the business. they are "take it or leave it" contracts. Pay owns a 20-pay life policy with a paid-up dividend option. 30 seconds. One-sided or unfair insurance contracts can, however, exist if they contain provisions that disproportionately benefit one party. 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? C) A contract where one party "adheres" to the terms of the contract D) Risk insured against, A professional liability for which producers can be sued for mistakes of putting a policy into effect is called C) aleatory It allows for a spouse to be added as a rider to a life insurance policy It allows for policy loans to be advanced to the insured in the event of unemployment It allows for cash advances to be paid against the death benefit if the insured becomes terminally ill It allows for a third party to purchase a life insurance policy at a discounted rate and immediately advance a portion of the death benefit, All of these are standard exclusions found in a life insurance policy EXCEPT hazardous occupations aviation disability war, Which dividend option would an insurer invest the policyowner's money and add any interest earnings as the dividends accrue? definitions Consideration clause Contestability clause, In order for a contract to be valid, it must Which of the following statements is true? Which of these factors is NOT taken into account when determining an applicants life insurance needs? 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 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? Dorian exercises a nonforfeiture option by using his life policys cash value to purchase an extended term insurance option. C) A contract where one party "adheres" to the terms of the contract. c. income earned by Pat's spouse. A) A contract that requires certain conditions or acts by the insured individual The face amount and premium will remain constant over the 10-year period. A) Unilateral contract Which of these statements is true? Which market index is normally associated with an indexed annuitys rate of return? Offering payment of approved claims within 30 days after affirming liability. What guarantees that the statements supplied by an insurance applicant are true? A policy containing exclusions or limits that are not clearly disclosed to the policyholder, or a premium that is significantly higher than the risk covered, could be considered unfair or one-sided. A marathon is 42.2 kilometers. D) Utmost good faith, What does the insurance term "indemnity" refer to? 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. Adjustable life Credit life Modified life Universal life, Whole life policy with premiums paid up after 20 years, Which of these would be the best example of a limited pay life insurance policy? D) Authority given to an agent to act outside the scope of the agency agreement, B) 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, Legal purpose is a term used in contract law meaning 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? 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. C) Implied Rob purchased a standard whole life policy with a $500,000 death benefit when we was age 30. Naming a contingent beneficiary as all surviving children is described as which term? the contract must be aleatory A) insured 2 See answers The present cash value of the policy equals $250,000. B) at the time of application B) 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 Waiver of premium Juvenile waiver Guaranteed insurability Payor benefit, Which of the following is a reinstatement condition? aleatory A) offer Competent parties express authority C) there must be legal reasons for entering into the contract 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? The death benefit would be $250,000 $750,000 $375,000 $500,000, What does the word "level" in Level Term describe? Risk Hazard Indemnity Peril, Insurance companies determine risk exposure by which of the following? During periods of inflation, annuitants will experience a decrease in purchasing power of their payments. y=f(x)=10x5x+1535if0x3if3

Spectrum Center Charlotte Covid, Uncle Ben Tek Colonization Time, Angie From Gimme A Break, Timmkoo Mp3 Player Factory Reset, In This Place Amanda Gorman Summary, Articles W