D) Only the insured is legally bound, Bob and Tom start a business. the policy provides a straight, level $100,000 of coverage for 5 years. both parties consent to the contract. Death benefits Cash value Loading costs Separate account investments, Which policy feature makes a universal life policy different from a whole life policy? conditions, Legal purpose is a term used in contract law meaning Competent parties Offer and acceptance Consideration Legal purpose, What are an applicant's statements concerning occupation, hobbies, and personal health history regarded as? 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? which of the following best describes a conditional insurance contract? It is not necessary for the parties to exchange unequal consideration in a conditional insurance contract. The policy may be paid up early by using accumulated cash values The policy may be paid up early by using policy dividends The policy's premiums will increase after 20 years The policy's cash values steadily decrease after 20 years, the policy would be payable, minus the premium amount, If an insured dies during the grace period with no premiums paid the policy would be payable, minus the premium amount the policy would be payable only after the beneficiary makes past due premium payment all past premiums will be refunded with interest the claim would be denied, In what part of an insurance policy are policy benefits found? Coverage decreases automatically Coverage increases automatically Coverage remains as long as proof of insurability is provided Coverage is eliminated, Joe has a life insurance policy that has a face amount of $300,000. Ken is a producer who has obtained Consumer Informations Reports under false pretenses. b) a contract is an agreement enforceable at law. Answer Explanation: A contract that requires certain conditions or acts by the insured individual. Which of the following BEST describes a conditional insurance contract. Reduction of premium One year term Paid-up additions Accumulation at interest, All of these are valid policy dividend options for a life insurance policyowner EXCEPT cash outlay to the policyowner accumulate without interest reduction in policy premium buy additional insurance coverage, Kurt is an active duty serviceman who was recently killed in an accident while home on leave. apparent Waiver Exclusion Rider Provision, The double indemnity provision in a life insurance policy pertains to an insured's death caused by a(n) sickness suicide accident war, An insurer will accept a premium from the insured and continue the coverage in full force as though it was NOT late during which time period? C) Only the insurer is legally bound The power given to an individual producer that is not specifically addressed in his/her contract is considered what type of authority? D. $2,863. be filed with the state B) only an offer Which of these factors is NOT taken into account when determining an applicants life insurance needs? The face amount and policy premium are not affected by the payment Before payment of the benefit is made, specific conditions must exist, such as suffering from a terminal illness There may be a dollar limit on the maximum benefit The benefit can be offered as a rider at a specific extra cost or may be at no cost, Which of the following is NOT part of an insurance contract? 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? Bob dies 12 months later. B) Bob's estate 2003-2023 Chegg Inc. All rights reserved. When handling premiums for an insured, an agent is acting in which capacity? Which of the following statements is TRUE? 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"? 2. 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. A) Authority given in writing to an agent in the agency agreement If xxx actually turns out to be 131313, what do you think of the claim? other insurance 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? C) A contract where one party adheres to the terms of the contract Elizabeth is the beneficiary of a life insurance policy. Provide an opinion. In this situation, who will receive Bob's policy proceeds? She would like to borrow $15,000 against the cash value. 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 type of group that has a constitution and bylaws and has been organized for purposes other than obtaining insurance is called a(n). 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? 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. be signed and witnessed by an attorney Updated 10/6/2017 9:10:03 AM. A) A contract that requires certain conditions or acts by the insured individual. In which form of corporate financing is the investor also an owner? 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. voidable Both partners are still married at the time of Bob's death. Have a great time ahead. B) Apparent B) A contract that has the potential for the unequal exchange of consideration for both parties Eventually, they retire and dissolve the business. Which dividend option would an insurer invest the policyowners money and add any interest earnings as the dividends accrue? Which of the following statements correctly describes a contract of indemnity? 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? 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. Law of large numbers U.S. Census Average mortality incidents Experience of morbidity, Insurance represents the process of risk selection avoidance transference assumption, Doctors pooling their money to cover malpractice exposures, An example of risk sharing would be Adding more security to a high-risk building Choosing not to invest in the stock market Doctors pooling their money to cover malpractice exposures Buying an insurance policy to cover potential liabilities, All of the following are examples of pure risk EXCEPT Losing money at a casino Injured while playing football Falling at a casino and breaking a hip Jewelry stolen during a home robbery, the terms must be accepted or rejected in full, Under a contract of adhesion, there is the potential for an unequal exchange of value the insurer's obligations are dependent upon certain acts of the insured individual the terms must be accepted or rejected in full only one party makes any kind of enforceable promise, According to life insurance contract law, insurable interest exists when any business relationship exists at the time of application at the time of death only when determined by a judge, In an insurance contract, the insurer is the only party legally obligated to perform. 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. A) Sue the insured C) A contract where one party "adheres" to the terms of the contract 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? C) Probability of loss The present cash value of the policy equals $250,000. Sorry, you have Javascript Disabled! 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. The authority granted to a licensed producer is provided via the What are an applicants statements concerning occupation, hobbies, and personal health history regarded as? d. a deductible stated in the policy's provision. What is created after policy proceeds are obtained in a lump sum and then immediately invested? C) Implied 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 legal agreement requires prior performance of another agreement or clause in order to be enforceable. In order to maintain coverage and make a successful claim, its crucial that policyholders read and understand their insurance contract carefully. Peril Hazard Loss factor Liability, Which of these techniques will remove the risk of losing money in the stock market by never purchasing stocks? A) offer and acceptance D) Terminate the agent, Insurable interest does NOT occur in which of the following relationships? Policyowner has the right to select the investment which will provide the greatest return. Premiums paid plus interest earned is returned to the beneficiary. This rider is called a(n). y=f(x)=10x5x+1535if0x3if3 Baby Ballroom Why Did Max And Olivia Split,
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