Answer Explanation: A contract that requires certain conditions or acts by the insured individual. Rob recently died at age 60. Naming a contingent beneficiary as all surviving children is described as which term? It is the means by which one or more parties bind themselves to certain promises.
which of the following best describes a conditional insurance contract The death benefit would be. Variable life insurance and Universal life insurance are very similar. Which type of annuity guarantees a stated number of income payments, whether or not the annuitant is still alive to receive them? Adjustable life policy Modified life policy Endowment policy Universal life policy, How are survivorship life insurance policies helpful in estate planning? Which statement is CORRECT when describing a contract of adhesion? Implied Intentional withholding of material facts that would affect an insurance policy's validity is called a(n). B) written contract Nothing $100,000 $250,000 $500,000, Which type of life insurance is normally associated with a Payor Benefit rider? The amount of his disability income payments for an on-the-job injury may be reduced by. claim forms A) Parties involved in the contract If she dies 15 years after the policys inception date, how much will her beneficiary receive? consideration Who is responsible for assembling the policy forms for insureds? D) Consideration, What are an applicant's statements concerning occupation, hobbies, and personal health history regarded as? 2003-2023 Chegg Inc. All rights reserved. A) express authority A) One party is restored to the same financial position the party was in before the loss occurred B) The unequal exchange of value or consideration for both parties C) One party (the insurance company) prepares the contract with no negotiation between the applicant and insurer D) Only one party (the insurer) makes any kind of enforceable promise Competent parties 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
Which of these features are held exclusively by variable universal life insurance? Barbaras policy includes a rider which allows her to purchase additional insurance at specific dates or events without evidence of insurability. C) Apparent authority d) an agreement requires a definite offer and an indefinite acceptance. Only the insurance company has legal obligations. (C) Both parties exchange goods of equal value. 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). 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 B) A contract that has the potential for the unequal exchange of consideration for both parties C) statements made in the application and the premium Which of the following best defines diction? A. simile B - Weegy Tom's spouse Bob's estate Bob's spouse Tom, Which contract element is insurable interest a component of? D) Consideration clause, When the principal gives the agent authority in writing, it's referred to as B) Only the insured can change the provisions underwriter, Life Insurance Policies - Provisions, Options, Fundamentals of Financial Management, Concise Edition, Micro Oneliners: Urinary Tract Infections (UT. The face amount and premium will remain constant over the 10-year period. C) Consideration A contract that requires certain conditions or acts by the insured individual. D) Intent, Which contract element is insurable interest a component of? Which contract element is insurable interest a component of? The gap between the total death benefit and the policys cash value. Andy the annuitant dies before the annuity start date. B) producer A) implied authority Expert answered| selymi |Points 23307|. fichoh. Karen is a producer who has obtained personal information about a client without having a legitimate reason to do so. Sorry, you have Javascript Disabled! 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? B) concealment What kind of policy is this? C) Bob's spouse Which of the following is true of the law of contracts? A new stain removal product claims to completely remove the stains on 909090 percent of all stained garments. Rob recently died at age 60. Which of the following products would allow him to accomplish this? Principal Capacity, All of the following are elements of an insurance policy EXCEPT Vegetable B. After a number of years, the policy's cash value accumulates to $50,000 and the face amount becomes $350,000. C) Only the insurer is legally bound His insurance agent told him the policy would be paid up if he reached age 100. It is not necessary for the parties to exchange unequal consideration in a conditional insurance contract. there is the potential for an unequal exchange of value Which of the following statements correctly describes a contract of indemnity? A) the appearance of authority an insurer gives to its agent A) A contract that requires certain conditions or acts by the insured individual C) the authority to represent the insurer Competent parties Offer and acceptance Consideration Legal purpose, What are an applicant's statements concerning occupation, hobbies, and personal health history regarded as? How does life insurance create an immediate estate? 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. Apparent C) fiduciary trust How could a company manager use a process cost summary to determine if the program to reduce water usage is successful? Because of this, an insurance contract is considered Which of the following BEST describes a conditional insurance contract? Which of the following BEST describes a conditional insurance contract. performance is conditioned upon a future occurrence. Which of the following would be a valid reason why a policy premium would be higher than the standard premium? Which of the following describes a person who is NOT acceptable by an insurer at standard rates because of health history, occupation, or hobbies? Consideration clause B) issuance of the policy Completing all applications and collecting initial premiums. Have a great time ahead. An individual who removes the risk of losing money in the stock market by never purchasing stocks is said to be engaging in. C) The insured and the insurer contribute equally to the contract. 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. $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? In order to maintain coverage and make a successful claim, its crucial that policyholders read and understand their insurance contract carefully. Chapter 3 Legal Concepts of the Insurance Contract - Quizlet Insurer's promise to pay benefits A paid premium Legal purpose Intent, 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, What is implied authority defined as? c) a contract must be in writing. Which type of life insurance policy is this? An example of an unfair claims settlement practice is, Turning down a claim without providing the basis of denial. Of the following dividend options, which of these is taxable? be filed with the state Which market index is normally associated with an indexed annuitys rate of return? This is also known as a non-negotiable insurance contract, or an automatic contract. Term Straight Life Endowment Variable Life, A life insurance policy that has premiums fully paid up within a stated time period is called stated payment insurance limited universal insurance stated modified insurance limited payment insurance, Reggie purchased a life insurance policy with a face amount of $500,000. 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. 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? 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. 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 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. C) apparent authority After 15 years, the cash value has accumulated to $100,000 and the policy's face amount has become $600,000. 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. C) Contract must have a legal purpose Updated 10/6/2017 9:10:03 AM. Which Of The Following Best Describes A Conditional Insurance Contract Under the McCarran-Ferguson Act, what is the minimum penalty for this? Authority given in writing to an agent in the agency agreement C) Probability of loss 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. 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? Sharing commissions with a producer licensed in the same line of business. The insured, on the other hand, makes few, if any, legally binding promises to the insurer. The policies continue in force with no change. If the insured dies at any time during the 5 years, his beneficiary will receive the policy's face value. 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? C) A contract where one party "adheres" to the terms of the contract. 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 A) there is the potential for an unequal exchange of value 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. A contract that requires certain conditions or acts by the insured individual. Which of the following is a TRUE statement? voidable What kind of policy is this? Which of the following BEST describes a conditional insurance contract? 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. (A) Both parties to the contract are bound to the terms. A marathon is 42.2 kilometers. 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". Consideration Under the Fair Credit Reporting Act, what is the maximum penalty that may be imposed in Ken? C) negotiation between the involved parties Which Of The Following Best Describes A Conditional Insurance Contract. 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. D) unilateral, Who is responsible for assembling the policy forms for insureds? In most cases, the insured is. Advertisement. A) Insurer's promise to pay benefits A) Express there must be legal reasons for entering into the contract This rider is called a(n). collateral, What is implied authority defined as? Use the binomial distribution to find P(x13)P(x \leq 13)P(x13) if the stain removal product's claim is correct. Where would policy proceeds be paid if both the insured and primary beneficiary were killed in the same accident? All of these are typically sources of underwriting information for life or health insurance EXCEPT. Conditional Contracts: Everything You Need to Know - UpCounsel A(n) ________ investigates, negotiates, and settles claims for a few on behalf of an insurance company. 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? Which of these is considered to be a disadvantage of owning this type of annuity? Log in for more information. Insurance Multiple-Choice Questions Flashcards Preview - Brainscape __________. Which of the following best describes a conditional insurance contract 1 pt. which of the following best describes a conditional insurance contract? A) offer Which of the following would be an act of Unfair Discrimination by an insurer? A) voidable Your email address will not be published. Eventually, they retire and dissolve the business. The authority granted to a licensed producer is provided via the 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. 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) Only the insured is legally bound, Bob and Tom start a business. When the principal gives the agent authority in writing, its referred to as, The terms must be accepted or rejected in full. $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? All of the following statements about Carl's coverage are correct. During periods of inflation, annuitants will experience a decrease in purchasing power of their payments. What is the advantage of adding this rider? How many days is a temporary producers license valid? y=f(x)=10x5x+1535if0x3if3which of the following best describes a conditional insurance contract B) NAIC 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? 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. Which course of action is the insurer entitled to when deliberate concealment is committed by the insured? Which of these features are held exclusively by variable universal life insurance? Elizabeth is the beneficiary of a life insurance policy. In which form of corporate financing is the investor also an owner? A) A contract that requires certain conditions or acts by the insured individual Ken is a producer who has obtained Consumer Informations Reports under false pretenses. A) Sue the insured a. medical expenses covered under Pat's employer-sponsored group health insurance. Pay owns a 20-pay life policy with a paid-up dividend option. A policyowner is prohibited from making any changes to the policy without the beneficiarys written consent under which beneficiary designation? Which of the following statements is true? 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. See answers. 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". 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? When does a life insurance policy typically become effective? A. D) imposed authority, What makes an insurance policy a unilateral contract? 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. 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? A.$1,656 A rating from a rating service company, such as A.M. Best An illustration A sales presentation Direct mailing from an agency, Fraternal Benefit Society has each of the following characteristics EXCEPT Incorporated Without capital stock Exist For profit Exist for the benefit of its members, A plan in which an employer pays insurance benefits from a fund derived from the employer's current revenues is called A self-derived plan A multiple-employer plan A blanket plan A self-funded plan, An insurer's ability to make unpredictable payouts to policyowners is called investment values liquidity assets capital, Ken is a producer who has obtained Consumer Information Reports under false pretenses. In this situation, who will receive Bob's policy proceeds? Which of the following is a reinstatement condition? weegy. _______ is the authority given to a producer to transact business on behalf of the insurer. A) State Insurance Departments How often must the Commissioner examine each domestic insurance company? Because of this, an insurance contract is considered voidable conditional aleatory unilateral, Who is responsible for assembling the policy forms for insureds? D) legal reserve, In an insurance contract, the element that shows each party is giving something of value is called A) One party is restored to the same financial position the party was in before the loss occurred. Which of the following does a producer NOT have a fiduciary responsibility to? 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. Eventually, they retire and dissolve the business. The death benefit paid will be what the premium would have purchased at the correct age, Converting a group plan to permanent life insurance requires, The conversion being applied for within 31 days of termination. Under the Fair Credit Reporting Act, what is the maximum penalty that may be imposed on Ken? Which of the following BEST describes a conditional insurance contract? B) acceptance Risk Hazard Indemnity Peril, Insurance companies determine risk exposure by which of the following? 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? 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.