B) implied authority Typically, bilateral contracts involve an equal obligation or. a. medical expenses covered under Pat's employer-sponsored group health insurance. there must be an offer and acceptance Policy Application Riders Certificate of Authority, A life insurance rider that allows an individual to purchase insurance as they grow older, regardless of insurability, is called a(n) guaranteed term rider guaranteed insurability rider accelerated benefit rider cost of living rider, The suicide clause of a life insurance policy states that if an insured commits suicide within a stated period from the policy's inception, the insurer will only be liable for a return of premiums paid minus indebtedness and with interest during the last 12 months minus indebtedness and without interest during the last 6 months, A life insurance policyowner does NOT have the right to change a beneficiary select a beneficiary take out a policy loan revoke an absolute assignment, A life insurance policy normally contains a provision that restricts coverage in the event of death under all of the following situations EXCEPT fare-paying passenger pilot of personal airplane suicide war, The insurer's obligation to pay a death benefit upon an approved death claim, Under a life insurance policy, what does the insuring clause state? d) an agreement requires a definite offer and an indefinite acceptance. 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) Business partners there must be legal reasons for entering into the contract It allows for cash advances to be paid against the death benefit if the insured becomes terminally ill. James is the insured on a life insurance policy where his age was misstated on the application. GENERAL LAW OF CONTRACTS A contract is an agreement enforceable by law. Science Study Guide Questions. B) Period to which the coverage exists Intentional withholding of material facts that would affect an insurance policy's validity is called a(n). Conditional, Under a contract of adhesion,
Georgia Life Insurance Exam Ch. 2 questions & answers for quizzes and 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. y=f(x)=10x5x+1535if0x3if3
Which of the following best defines diction? A. simile B - Weegy Dorian exercises a nonforfeiture option by using his life policys cash value to purchase an extended term insurance option. C) consideration B) A paid premium Modified Endowment Contract Current assumptive whole life Credit life insurance Equity index whole life, What kind of life insurance policy covers two or more people with the death benefit payable upon the last person's death? If she dies 15 years after the policys inception date, how much will her beneficiary receive? 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? Because of this, an insurance contract is considered voidable conditional aleatory unilateral, Who is responsible for assembling the policy forms for insureds? It is a nonprofit organization that maintains underwriting information on applicants for life and health insurance. Because insurance premiums are tax-deductible Because dividends are already subject to capital gains Because dividends are payable directly to the policyholder Because dividends are considered to be a return of premium, A type of insurer that is owned by its policyowners is called domestic mutual stock in-house, What is considered to be the primary reason for buying life insurance? After 15 years, the cash value has accumulated to $100,000 and the policy's face amount has become $600,000. Answer Explanation: A contract that requires certain conditions or acts by the insured individual. discreet apparent implied express, Bob and Tom start a business. Elizabeth is the beneficiary of a life insurance policy. C) there must be legal reasons for entering into the contract How do marketers use insights regarding the self-concept? A) A contract that requires certain conditions or acts by the insured individual. C) claim forms A) offer and acceptance The face amount and premium will remain constant over the 10-year period. B) the contract must be aleatory Which of the following is a reinstatement condition? In order to maintain coverage and make a successful claim, its crucial that policyholders read and understand their insurance contract carefully. A.$1,656 Which of the following Best Describes a Conditional Insurance Contract Bob and Tom start a business. producer D) Business owner and business client, Under a contract of adhesion, Which of these is considered to be a Living Benefit option in a life insurance policy? C) The insured and the insurer contribute equally to the contract. Which policy requires an agent to register with the National Association of Securities Dealers (NASD) before selling? 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) Both parties exchange goods of equal value. 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 Naming a contingent beneficiary as all surviving children is described as which term? 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 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". conditional The coverage, conditions, and limitations in the master policy of a group contract can be found in which document? It is not necessary for the parties to exchange unequal consideration in a conditional insurance contract. Sorry, you have Javascript Disabled! 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? Which of these factors is NOT taken into account when determining an applicants life insurance needs? A unilateral contract is one in which only one party makes a legally binding guarantee. Within how many days must a licensee notify the Commissioner of a change in address? It is not necessary for the parties to exchange unequal consideration in a conditional insurance contract. Which of the following is a requirement to attain an Utah resident producer license? The present cash value of the policy equals $250,000. $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? Sister and brother Risk reduction Risk transference Risk avoidance Risk retention, The cause of a loss is referred to as a(n) hazard adversity peril risk, How do insurers predict the increase of individual risks? What kind of policy is this? What is the purpose for having an accelerated death benefit on a life insurance policy? This rider is called a(n). What is a corridor in relation to a Universal Life insurance policy? D) purpose, Which principle is accurately described with the statement "Insureds are entitled to recover an amount NOT greater than the amount of their loss"? D. $2,863. B) issuance of the policy All of the following are examples of a Business Continuation Plan EXCEPT. An insurer exaggerating its dividends in a magazine advertisement. When initial premium is collected and policy is issued. Andy the annuitant dies before the annuity start date. Which type of life insurance policy is this? B) written contract D) unilateral, Who is responsible for assembling the policy forms for insureds? A marathon is 42.2 kilometers. Advertisement. 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. 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? An example of an unfair claims settlement practice is, Turning down a claim without providing the basis of denial. be signed and witnessed by an attorney A) Parties involved in the contract The terms of the policy typically outline these conditions . During periods of inflation, annuitants will experience a decrease in purchasing power of their payments. A) definitions The principle of insurable interest, in regards to a life insurance contract, is accurately described in which statement? 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. C) Implied In order to maintain coverage and make a successful claim, its crucial that policyholders read and understand their insurance contract carefully. purpose, Insurable interest does NOT occur in which of the following relationships? A) Express authority Which Of The Following Best Describes A Conditional Insurance Contract A contract that requires certain conditions or acts by the insured individual. A) offer 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. Which of the following is the best descriptive word? 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. Notify me of follow-up comments by email. C) negotiation between the involved parties 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. 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. D) statements made in the application only, C) statements made in the application and the premium, According to life insurance contract law, insurable interest exists Rob recently died at age 60. Eventually, they retire and dissolve the business. aleatory C) adhesion Accumulation at Interest Option Cash Dividend Option Paid-Up Additions Option One-Year Term Dividend Option, The policy may be paid up early by using policy dividends, Pat owns a 20-pay life policy with a paid-up dividend option. B) A contract that has the potential for the unequal exchange of consideration for both parties. What guarantees that the statements supplied by an insurance applicant are true? An example of an unfair claims practice would be, Failing to effectuate prompt, fair, and fair equitable settlements of a claim. 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? definitions representation Insurers must maintain files of all documents used for solicitation for ____ year(s) after the last authorizes date of use. Only the insurer is legally bound The death benefit would be. Which type of annuity guarantees a stated number of income payments, whether or not the annuitant is still alive to receive them? 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. D) collateral, Express power given to an agent in an agency agreement is Zucchini is the best descriptive word. Intent, The deeds and actions of a producer indicate what kind of authority? If the consumer price index had gone up 4%, how much may Ron increase the face value of the policy? Variable life insurance and Universal life insurance are very similar. Consideration clause Modified Whole Life Decreasing Term Life Adjustable Life Whole Life, Decreasing term life insurance is often used to provide retirement funds provide coverage for a home mortgage accumulate cash value provide coverage for estate taxes, Which of these is NOT subject to income taxation under a Modified Endowment Contract (MEC)? Who prosecutes crimes that involve the violation of insurance laws that fall under US Code 1033? A) voidable Which of the following BEST describes a conditional insurance contract. For a trip to the hospital, Evan Appleton paid $1,656 in hospital charges, a$750 insurance deductible, and a $457 co-payment. A) Legal Karen is a producer who has obtained personal information about a client without having a legitimate reason to do so. 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. Tom's spouse Bob's estate Bob's spouse Tom, Which contract element is insurable interest a component of? 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? Which type of life insurance offers flexible premiums, a flexible death benefit, and the choice of how the cash value will be invested? 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? 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? D) Competent parties, Which of the following BEST describes a conditional insurance contract? Adhesion clause Multiple-choice. Which of the following best describe the term definition 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? Where would policy proceeds be paid if both the insured and primary beneficiary were killed in the same accident? D) misrepresentation, Which of the following is NOT required in the content of a policy? A policyowner is prohibited from making any changes to the policy without the beneficiarys written consent under which beneficiary designation? C) Insurable interest promises made Question. Which Of The Following Statements About Personal Selling Is Correct? Which of the following is CORRECT regarding the death benefit amount? written contract Both partners are still married at the time of Bob's death. Ron has a life insurance policy with a face value of $100,000 and a cost of living rider. 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? express, ______ is NOT an element of a valid 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. Which of the following are the premium payments for a universal life policy NOT used for? A. 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. A) there is the potential for an unequal exchange of value Which Of The Following Best Describes A Conditional Insurance Contract underwriting 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? Insurance Multiple-Choice Questions Flashcards Preview - Brainscape B) Implied authority All of the following are examples of pure risk EXCEPT. D) Consideration, What are an applicant's statements concerning occupation, hobbies, and personal health history regarded as? C) statements made in the application and the premium In which form of corporate financing is the investor also an owner? 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. Bob dies 12 months later. Preferred risk policies with reduced premiums are issued by insurance companies because the insured has, Better than average mortality or morbidity experience. 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? Nothing $100,000 $250,000 $500,000, Which type of life insurance is normally associated with a Payor Benefit rider? The present cash value of the policy equals $250,000. Which of the following BEST describes a conditional insurance contract? 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? Because you're already amazing. A) One party is restored to the same financial position the party was in before the loss occurred. c. income earned by Pat's spouse. A) estoppel Which of the following BEST describes a conditional insurance contract? 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. 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? D) the authority to add provisions to a contract, C) the authority to represent the insurer, Which of the following contracts is defined as "one that restores an injured party to the condition that was present before the loss"? 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. D) Legal Purpose, Which of the following is present when an applicant stands to lose value if the insured dies? Julie has a $100,000 30-year mortgage on her new home. D) errors and oversights, In an insurance contract, the insurer is the only party legally obligated to perform. Premium clause $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? Which of these legislation Acts is designed to protect consumers with guidelines regarding credit reporting and distribution? The policy may be paid up early by using policy dividends. Which course of action is the insurer entitled to when deliberate concealment is committed by the insured? The policies continue in force with no change. 30 seconds. Only the insured pays the premium Authority given in writing to an agent in the agency agreement Describe the structure. Apparent An unintentional violation of Utah insurance law could lead a producer to a fine of up to _____ per violation. The terms of the policy typically outline these conditions, which may include paying premiums on time and maintaining the insured property in good condition. Corporations, like all firms, can raise money by borrowing from banks and other lending institutions. D) underwriter, Reasonably necessary acts that an agent must perform for carrying out his/her expressly authorized duties are covered by an agent's