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. Waiver of premium Juvenile waiver Guaranteed insurability Payor benefit, Which of the following is a reinstatement condition? 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 C) the contract has been prepared by one party (the insurance company) with no negotiation between the applicant and the insurer D) only one party makes any kind of enforceable promise, C) the terms must be accepted or rejected in full, What is implied authority defined as? C) claim forms A new stain removal product claims to completely remove the stains on 909090 percent of all stained garments. B) at the time of application ______ is NOT an element of a valid contract. The policies continue in force with no change. Sharon is the policyowner of a $500,000 life insurance policy. the contract must be aleatory B) written contract 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? This is also known as a non-negotiable insurance contract, or an automatic 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. The power given to an individual producer that is not specifically addressed in his/her contract is considered what type of authority? C) Law of large numbers Her son, Mike, is the beneficiary. A) Insurer's promise to pay benefits _______ is the authority given to a producer to transact business on behalf of the insurer. A) Tom's spouse Which of the following best describes the MIB? Death benefits Cash value Loading costs Separate account investments, Which policy feature makes a universal life policy different from a whole life policy? The most appropriate description ascribed to the meaning of definition from the options given is ; A precise statement of the qualities of an idea, object or process. __________. acceptance 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? B) Unequal consideration His insurance agent told him the policy would be paid up if he reached age 100. 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. C) fiduciary trust A) A contract that requires certain conditions or acts by the insured individual An example of an unfair claims practice would be, Failing to effectuate prompt, fair, and fair equitable settlements of a claim. Which type of annuity guarantees a stated number of income payments, whether or not the annuitant is still alive to receive them? legal reserve, What are an applicant's statements concerning occupation, hobbies, and personal health history regarded as? Describe the structure. 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? $2,406 consideration C) aleatory Where would policy proceeds be paid if both the insured and primary beneficiary were killed in the same accident? 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? 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 C) Law of Agency B) only one party (the insurer) makes any kind of legally enforceable promise Which of the following is true of the law of contracts? A life insurance claim which involves a per capita distribution of policy proceeds would be payable to the. conditional A) implied authority The policies continue in force with no change. Anheuser-Busch InBev is trying to reduce its water usage. C) Only the insurer is legally bound D) both the policyowner and the insurer must know all material facts and relevant information, B) only one party (the insurer) makes any kind of legally enforceable promise, Intentional withholding of material facts that would affect an insurance policy's validity is called a(n) there must be legal reasons for entering into the contract C) Insurance carriers 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? B) errors and omissions The policy may be paid up early by using policy dividends. Which of the following would be an act of Unfair Discrimination by an insurer? Guaranteed Insurability rider Family term insurance rider Family whole insurance rider Payor benefit rider, A partial surrender is allowed in which of the following life policies? The two major actions required for a policyowner to comply with the Reinstatement Clause are, Provide evidence of insurability, pay past due premiums, The term which describes the fact that both parties of a contract may NOT receive the same value is referred to as. Both partners are still married at the time of Bob's death. A) when any business relationship exists C) statements made in the application and the premium If the consumer price index had gone up 4%, how much may Ron increase the face value of the policy? B) Law of adhesion Adhesion clause producer 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. the terms must be accepted or rejected in full Which Of The Following Statements About Personal Selling Is Correct? The type of annuity she is seeking is called. Term insurance is appropriate for someone who, Seeks temporary protection and lower premiums. The terms and conditions of insurance contracts should be carefully reviewed by policyholders before signing. A) One party is restored to the same financial position the party was in before the loss occurred. Which of the following BEST describes a conditional insurance contract? Which of these is considered to be a Living Benefit option in a life insurance policy? (C) Both parties exchange goods of equal value. Assume that the product will be tested on 202020 randomly selected stained garments, and let xxx denote the number of these garments from which the stains will be completely removed. 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? B) conditional The terms of the policy typically outline these conditions, which may include paying premiums on time and maintaining the insured property in good condition. Group policy Adjustable life policy Whole life policy Endowment policy, A renewable Term Life insurance policy allows the policyowner the right to renew the policy at anytime the policyowner chooses as many times as the policyowner chooses paying the same premium as before the renewal without producing proof of insurability, When a decreasing term policy is purchased, it contains a decreasing death benefit and increasing premiums level premiums decreasing premiums variable premiums, Julie has a $100,000 30-year mortgage on her new home. implied issuance of the policy A) Legal A) Insurability apparent How soon can the benefit payments begin with a deferred annuity? Adjustable life policy Modified life policy Endowment policy Universal life policy, How are survivorship life insurance policies helpful in estate planning? 2003-2023 Chegg Inc. All rights reserved. Utah requires that an insurance producer must complete ___ hour(s) of continuing education on the subject of law and ethics every reporting period. D) Intent, Which contract element is insurable interest a component of? Which of these would NOT be an unfair claims practice? (A) Both parties to the contract are bound to the terms. Lisa has recently bought a fixed annuity. A) A contract that requires certain conditions or acts by the insured individual Authority given in writing to an agent in the agency agreement 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 Authority given to handle claims and process payments Authority given to an agent to act outside the scope of the agency agreement, The authority granted to a licensed producer is provided via the producer's apparent authority written contract Law of Agency Principal Capacity, Insurable interest does NOT occur in which of the following relationships? Naming a contingent beneficiary as all surviving children is described as which term? A) warranty 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. Intentional withholding of material facts that would affect an insurance policy's validity is called a(n). Contestability clause, In order for a contract to be valid, it must C) the authority to represent the insurer What is the purpose for having an accelerated death benefit on a life insurance policy? Sorry, you have Javascript Disabled! Which of these features are held exclusively by variable universal life insurance? In this situation, who will receive Bob's policy proceeds? C) the terms must be accepted or rejected in full A) Insurable interest When initial premium is collected and policy is issued. Policyowner has the right to select the investment which will provide the greatest return. The death benefit would be. Insurer's promise to pay benefits 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? What is the difference between insurance condition and warranty? B) other insurance How does life insurance create an immediate estate? An insurer exaggerating its dividends in a magazine advertisement. Insurers must maintain files of all documents used for solicitation for ____ year(s) after the last authorizes date of use. The terms of the policy typically outline these conditions . unilateral, Ambiguities in an insurance policy are always resolved in favor of the 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? Only the insurer is legally bound Competent parties Offer and acceptance Consideration Legal purpose, What are an applicant's statements concerning occupation, hobbies, and personal health history regarded as? Of the following dividend options, which of these is taxable? 30 seconds. Accelerated death benefit rider Waiver of premium rider Extended term option Decreasing term insurance. Use the binomial distribution to find P(x13)P(x \leq 13)P(x13) if the stain removal product's claim is correct. 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. Only the insurance company has legal obligations. offer Which of the following best describe the term definition. 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. 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. C) at the time of death Which of the following is a TRUE statement? there must be an offer and acceptance 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 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). 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. the contract must be a contract of adhesion, there must be legal reasons for entering into the contract, What makes an insurance policy a unilateral contract? The death benefit would be $250,000 $750,000 $375,000 $500,000, What does the word "level" in Level Term describe?

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