The coverage, conditions, and limitations in the master policy of a group contract can be found in which document? The power given to an individual producer that is not specifically addressed in his/her contract is considered what type of authority? Which of the following BEST describes a conditional insurance contract? Expert answered| selymi |Points 23307|. 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. 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? All of these are typically sources of underwriting information for life or health insurance EXCEPT. A conditional contract, also called a hypothetical contract, is a contract agreement that only requires performance once the delineated conditions are met. B) the insurer's obligations are dependent upon certain acts of the insured individual Before using an assumed name in Utah, a producer MUST, Maria would like an annuity that provides a guaranteed accumulation or payout. Which of the following does a life insurance policy summary normally include? Loans obtained by a policyowner against the cash value of a life insurance policy. 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. (C) Both parties exchange goods of equal value. Which policy requires an agent to register with the National Association of Securities Dealers (NASD) before selling? Implied One-sided or unfair insurance contracts can, however, exist if they contain provisions that disproportionately benefit one party. 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. Which of the following is CORRECT regarding the death benefit amount? 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. A) producer's apparent authority 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. What does the Group Life underwriting risk selection process help protect insurance companies from? imposed authority, In an insurance contract, the element that shows each party is giving something of value is called $2,406 Definition refers to a description which is given to a word, idea or phenomenon . What is the meaning of par value of stock with respect to the corporate form of organization? Which of the following BEST describes a conditional insurance contract? 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. Apparent 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? D) underwriter, Reasonably necessary acts that an agent must perform for carrying out his/her expressly authorized duties are covered by an agent's conditional Incontestable period Probation period Reinstatement period Grace period, The benefit can be offered as a rider at a specific extra cost or may be at no cost, Which of these is NOT a characteristic of the Accelerated Death Benefit option? C) claim forms (A) Both parties to the contract are bound to the terms. Of the following dividend options, which of these is taxable? Which of the following would be a valid reason why a policy premium would be higher than the standard premium? A) the appearance of authority an insurer gives to its agent In this situation, who will receive Bob's policy proceeds? A new stain removal product claims to completely remove the stains on 909090 percent of all stained garments. Adhesion clause voidable 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) a contract must be in writing. In exchange, the policyowner pays premiums. What kind of policy is this? Whole life policy that pays out its cash value over a 20 year period Whole life policy with premiums paid up after 20 years Term life policy that returns cash value after 20 years Term life policy with premiums paid up after 20 years, Which type of multiple protection policy pays on the death of the last person? A) Unilateral contract D) Offer and acceptance must be involved, B) Equal consideration is required between the involved parties, A contract requires conditions, Legal purpose is a term used in contract law meaning unilateral, Ambiguities in an insurance policy are always resolved in favor of the Sister and brother 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, D) A contract where only one party makes any kind of enforceable contract. be signed and witnessed by an attorney WINDOWPANE is the live-streaming app for sharing your life as it happens, without filters, editing, or anything fake. 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 What kind of policy is this? Which option was chosen? Principal Capacity, All of the following are elements of an insurance policy EXCEPT Death benefits Cash value Loading costs Separate account investments, Which policy feature makes a universal life policy different from a whole life policy? Which of the following is a requirement to attain an Utah resident producer license? A) there must be an offer and acceptance If thats the case, you dont have to worry anymore. Anheuser-Busch InBev is trying to reduce its water usage. 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? B) Contract of adhesion The face amount and premium will remain constant over the 10-year period. both parties consent to the contract. Restoring an insured to the same condition as before a loss is an example of the principle of. Consideration A unilateral contract is one in which only one party makes a legally binding guarantee. Waiver of premium Juvenile waiver Guaranteed insurability Payor benefit, Which of the following is a reinstatement condition? B) A contract that has the potential for the unequal exchange of consideration for both parties D) Conditional, Which of the following is NOT a requirement of a contract? 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? Bob dies 12 months later. B. A) express authority The present cash value of the policy equals $250,000. It is not necessary for the parties to exchange unequal consideration in a conditional insurance contract. C) The insured and the insurer contribute equally to the contract. It is not necessary for the parties to exchange unequal consideration in a conditional insurance contract. Under the Fair Credit Reporting Act, what is the maximum penalty that may be imposed on Ken? Peril Hazard Loss factor Liability, Which of these techniques will remove the risk of losing money in the stock market by never purchasing stocks? Andy the annuitant dies before the annuity start date. A) Parties involved must be competent 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? Only the insured can change the provisions To see this page as it is meant to appear, please enable your Javascript! Ron has a life insurance policy with a face value of $100,000 and a cost of living rider. 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. Authority given to handle claims and process payments Countersignature, Which of the following is an example of the insured's consideration? Use the binomial distribution to find P(x13)P(x \leq 13)P(x13) if the stain removal product's claim is correct. A) when any business relationship exists 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. C.$2,113 B) Only the insured can change the provisions D) unilateral, Who is responsible for assembling the policy forms for insureds? a) a conditional acceptance allows the parties to negotiate the definite terms of the contract upon the completion of the contract. D) Intent, Which contract element is insurable interest a component of? Bob dies 12 months later. 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? 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 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. However, corporations also can raise money by selling bonds or issuing additional shares of stock. Authority given in writing to an agent in the agency agreement A) Express authority A double indemnity benefit will be payable to Matts beneficiary is Matt, All of the following riders can increase the death benefit amount EXCEPT, All of these are valid policy dividend options for a life insurance policyowner EXCEPT, The premium for a Modified whole life policy is, Lower than the typical whole life policy during the first few years and then higher than typical for the remainder, A nonparticipating company is sometimes called a(n), Intentional withholding of material facts that would affect an insurance policys validity is called a(n), Signatures for an insurance application MUST be obtained by the producer from all of the following sources EXCEPT. How often must the Commissioner examine each domestic insurance company? What is the difference between insurance condition and warranty? The death benefit would be $250,000 $750,000 $375,000 $500,000, What does the word "level" in Level Term describe? C) there must be legal reasons for entering into the contract Which of the following best describe the term definition. A non-contributory health insurance plan helps the insurer avoid. 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. the contract must be aleatory 1 pt. B) A paid premium 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? Insurance interest does NOT occur in which of the following relationships? The policy may be paid up early by using policy dividends. 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. Child term rider Payor rider Family maintenance rider Family income rider, What happens to the coverage under a children's term rider when that child reaches a certain specified age? A) Legal be filed with the state C) negotiation between the involved parties Sister and brother Parent and children Business partners Business owner and business client, The deeds and actions of a producer indicate what kind of authority? A) Competent parties The policies continue in force with no change. D) Principal Capacity, A unilateral contract is one in which B) concealment Eventually, they retire and dissolve the business. B) Offer and acceptance Both partners are still married at the time of Bob's death. there is the potential for an unequal exchange of value d) an agreement requires a definite offer and an indefinite acceptance. Answer Explanation: A contract that requires certain conditions or acts by the insured individual. A. written contract A) Only the insured pays the premium Contestability clause, In order for a contract to be valid, it must 2003-2023 Chegg Inc. All rights reserved. C) insurer 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? 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". Bob and Tom start a business.