After being properly appointed by the insurer. In which form of corporate financing is the investor also an owner? ______ is NOT an element of a valid contract. 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? The above question Which of the following BEST describes a conditional insurance contract?, Was part of Insurance MCQs & Answers. What does a life insurance policy guarantee to the stated beneficiary upon the death of the insured? 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? A conditional contract, also called a hypothetical contract, is a contract agreement that only requires performance once the delineated conditions are met. Elizabeth is the beneficiary of a life insurance policy. A. It is a nonprofit organization that maintains underwriting information on applicants for life and health insurance. Adjustable universal life policy Flexible universal life policy Variable universal life policy Modified universal life policy, Jonas is a whole life insurance policyowner and would like to add coverage for his two children. (D) Only one party is legally bound to the contract. Which of the following describes a person who is NOT acceptable by an insurer at standard rates because of health history, occupation, or hobbies? 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. What types of life insurance are normally used for key employee indemnification? Eventually, they retire and dissolve the business. C) Authority given to handle claims and process payments Which of the following best describes how you analyze a fiction text? 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? Within how many days must a licensee notify the Commissioner of a change in address? This is also known as a non-negotiable insurance contract, or an automatic contract. underwriting Death benefits Cash value Loading costs Separate account investments, Which policy feature makes a universal life policy different from a whole life policy? 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 face amount and premium will remain constant over the 10-year period. express, ______ is NOT an element of a valid contract. All of the following statements about Carl's coverage are correct. Which Of The Following Best Describes A Conditional Insurance Contract. 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. 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. If the insured dies at any time during the 5 years, his beneficiary will receive the policy's face value. Rob recently died at age 60. 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 A) voidable Who prosecutes crimes that involve the violation of insurance laws that fall under US Code 1033? d) an agreement requires a definite offer and an indefinite acceptance. 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? Which of the following would be an act of Unfair Discrimination by an insurer? Which of the following statements about aleatory contracts is NOT true? The gap between the total death benefit and the policys cash value. imposed authority, In an insurance contract, the element that shows each party is giving something of value is called At what point may a producer sell insurance for an insurer? What is this an example of? Principal Capacity, All of the following are elements of an insurance policy EXCEPT What kind of policy is this? 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. B) Consideration Apparent Which of the following BEST describes a conditional insurance contract? B) Offer and acceptance c. income earned by Pat's spouse. Administrative actions taken against a producer must be reported to the Commissioner within ____ days. If she dies 15 years after the policy's inception date, how much will her beneficiary receive? Which of the following BEST describes a conditional insurance contract? Definition refers to a description which is given to a word, idea or phenomenon . The death benefit would be. D) legal reserve, In an insurance contract, the element that shows each party is giving something of value is called 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? 2 See answers How soon can the benefit payments begin with a deferred annuity? Which course of action is the insurer entitled to when deliberate concealment is committed by the insured? 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? 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 Which market index is normally associated with an indexed annuitys rate of return? 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) A contract that requires certain conditions or acts by the insured individual. be signed and witnessed by an attorney 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? representation Consideration clause A) Authority given in writing to an agent in the agency agreement the terms must be accepted or rejected in full Both partners are still married at the time of Bob's death. 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". A policyowner can receive a percentage payment of the death benefits prior to death by using what kind of contract? C) promises made Bob dies 12 months later. D) Consideration, What are an applicant's statements concerning occupation, hobbies, and personal health history regarded as? Which of the following does a life insurance policy summary normally include? 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 Of the following dividend options, which of these is taxable? 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. She is receiving the death benefit in payments of $10,000 per month until the principal and interest has been paid out. In the case of an insurance contract, the contracting parties are the claimant and the insurer. 3. Identify the type of financing (stock or bond) that best answers the question. A) Only the insured pays the premium D) Tom, The deeds and actions of a producer indicate what kind of authority? acceptance C) adhesion C) Law of Agency A) there is an element of chance and potential for unequal exchange of value or consideration for both parties Advertisement. collateral, What is implied authority defined as? Who assumes the investment risk with a fixed annuity contract? Expert answered|Malekith22|Points 0| Log in for more information. A non-contributory health insurance plan helps the insurer avoid. The present cash value of the policy equals $250,000. Waiver of premium Juvenile waiver Guaranteed insurability Payor benefit, Which of the following is a reinstatement condition? 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) B) A contract that has the potential for the unequal exchange of consideration for both parties. B) conditional C) Indemnity contract Bob dies 12 months later. Rob purchased a standard whole life policy with a $500,000 death benefit when we was age 30. Dual Life insurance Joint Life insurance Last Survivor Life insurance Shared Life insurance, Index whole life insurance contains a securities component that acts as a(n) hedge against inflation premium stabilizer means to lowering taxes on earnings incentive to purchase more coverage, Which of the following are the premium payments for a Universal life policy NOT used for? B) Law of adhesion contain an offer and acceptance, In an insurance contract, the insurer is the only party legally obligated to perform. In order to maintain coverage and make a successful claim, its crucial that policyholders read and understand their insurance contract carefully. 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. 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? B. A. consideration C) apparent authority Insurable interest Insurance exchanges Law of large numbers and risk pooling Population table data, People with higher loss exposure have the tendency to purchase insurance more often than those at average risk. Food C. Plant D. Zucchini. conditional Insurance contracts are unilateral contracts. D) Risk insured against, A professional liability for which producers can be sued for mistakes of putting a policy into effect is called An example of an unfair claims practice would be, Failing to effectuate prompt, fair, and fair equitable settlements of a claim. Field underwriting performed by the producer involves, Completing the application and collecting initial premium, An employee under a group insurance policy has the right to name a beneficiary and the right to, Convert to an individual policy in the event of employment termination. Which of the following would be a valid reason why a policy premium would be higher than the standard premium? Nothing $100,000 $250,000 $500,000, Which type of life insurance is normally associated with a Payor Benefit rider? 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? 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. Which option was chosen? Which of the following statements correctly describes a contract of indemnity? Anheuser-Busch InBev is trying to reduce its water usage. b. benefits paid under workers compensation. Both partners are still married at the time of Bob's death. Bob dies 12 months later. A paid premium C) Insurance carriers B) Parent and children C) there must be legal reasons for entering into the contract Which of the following would be considered an underwriting duty of an agent? The coverage, conditions, and limitations in the master policy of a group contract can be found in which document? Which of the following statements is true? other insurance C) Bob's spouse 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". underwriter, Life Insurance Policies - Provisions, Options, Fundamentals of Financial Management, Concise Edition, Micro Oneliners: Urinary Tract Infections (UT. Plot this function and determine if she is ready to attempt the Bluenose Marathon. I hope you got the correct answer to your question. Which of these statements is true? A) insured 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 D) A contract where only one party makes any kind of enforceable contract. 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. A contract that requires certain conditions or acts by the insured individual. How many days is a temporary producers license valid? $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? aleatory C) Insurable interest A policyowner is prohibited from making any changes to the policy without the beneficiarys written consent under which beneficiary designation? C) Contract must have a legal purpose Aleatory Contract: A contract type in which the parties involved do not have to perform a particular action until a specific event occurs. there must be an offer and acceptance Corporations, like all firms, can raise money by borrowing from banks and other lending institutions. Science Study Guide Questions. Under the McCarran-Ferguson Act, what is the minimum penalty for this? C) Implied (A) Both parties to the contract are bound to the terms. Restoring an insured to the same condition as before a loss is an example of the principle of. C) the contract has been prepared by one party (the insurance company) with no negotiation between the applicant and the insurer B) the contract must be aleatory warranty offer 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? 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 disadvantage of owning this type of annuity? Which of these features are held exclusively by variable universal life insurance? The present cash value of the policy equals $250,000. 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 C) A contract where one party "adheres" to the terms of the contract. Eventually, they retire and dissolve the business. If the other agreement or condition is performed, then the conditional contract is . Which of the following BEST describes a conditional insurance contract? 0 Answers/Comments. 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. insured C) Law of large numbers Loan against the cash value Policy withdrawal Policy dividend Death benefit, A business will typically use which type of life insurance to cover their employees? 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? Provide an opinion. Which of the following is an annuity that is linked to a market-related index? One-sided or unfair insurance contracts can, however, exist if they contain provisions that disproportionately benefit one party. Returning a portion of a premium as inducement to purchase insurance, An applicant intentionally lying to an insurance company on an application in order to obtain a cheaper premium is an example of, Authority that is not specifically given to an agent in the agency contract, but that an agent can reasonably assume to carry out. Typically, bilateral contracts involve an equal obligation or. 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. there is the potential for an unequal exchange of value Insurance interest does NOT occur in which of the following relationships? Sister and brother An insurer exaggerating its dividends in a magazine advertisement. Which of the following is true of the law of contracts? 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. Which of these statements is true? Producers act in a(n) ________ capacity when holding insurance premiums. (C) Both parties exchange goods of equal value. A) warranty 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? Adjustable life policy Modified life policy Endowment policy Universal life policy, How are survivorship life insurance policies helpful in estate planning? Rob recently died at age 60. B) A contract that has the potential for the unequal exchange of consideration for both parties An insurance applicant with a below-average likelihood of loss is typically considered to be a. The provision that allows this is called Partial Surrender Subrogation Automatic Premium Loan Accelerated Death Benefit, All of these are characteristics of a universal life insurance policy EXCEPT Flexible death benefit Fixed surrender value Flexible premiums Builds cash value, Which of the following policies does NOT build cash value? In order for a contract to be valid, it must. B) Offer and acceptance 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? 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. Asked 10/6/2017 7:04:21 AM. Adhesion clause Which type of multiple protection policy pays on the death of the last person? Notify me of follow-up comments by email. Which of these would NOT be an unfair claims practice? Which of the following best describe the term definition. When does a life insurance policy typically become effective? After a number of years, the policy's cash value accumulates to $50,000 and the face amount becomes $350,000. An unintentional violation of Utah insurance law could lead a producer to a fine of up to _____ per violation. B) issuance of the policy All of the following are examples of pure risk EXCEPT. What does the Group Life underwriting risk selection process help protect insurance companies from? Which of the following is CORRECT regarding the death benefit amount? How do marketers use insights regarding the self-concept? Countersignature, Which of the following is an example of the insured's consideration? 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