fichoh. Asked 10/6/2017 7:04:21 AM. C) promises made What is created after policy proceeds are obtained in a lump sum and then immediately invested? Authority given in writing to an agent in the agency agreement C) Competent parties Plot this function and determine if she is ready to attempt the Bluenose Marathon. C) A contract where one party adheres to the terms of the contract Intent, The deeds and actions of a producer indicate what kind of authority? The policy may be paid up early by using policy dividends. 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 What kind of policy is this? Which of the following are the premium payments for a universal life policy NOT used for? How often must the Commissioner examine each domestic insurance company? 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. The policies continue in force with no change. Because of this, an insurance contract is considered Which dividend option would an insurer invest the policyowners money and add any interest earnings as the dividends accrue? If the other agreement or condition is performed, then the conditional contract is . B) Implied authority During periods of inflation, annuitants will experience a decrease in purchasing power of their payments. guarantee Have a great time ahead. Which of the following best describes the MIB? An individual who has a hobby racing cars once a month. The face amount and premium will remain constant over the 10-year period. The coverage, conditions, and limitations in the master policy of a group contract can be found in which document? Answer Explanation: A contract that requires certain conditions or acts by the insured individual. Which of these riders will pay a death benefit if the insureds spouse dies? Which of these statements is true? Which of the following BEST describes a conditional insurance contract? Options 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 Accelerated death benefit rider Waiver of premium rider Extended term option Decreasing term insurance. Key elements of Organizational Behavior - People, Structure ,Technology & External Environment | Organizational Behavior, Penology - Meaning, Types, Importance, Scope and Example | Sociology, Karmachari Sanchaya Kosh - | Employees Provident Fund Nepal, Perceptual Errors -Types of Perceptual Error | Fundamentals of Organizational Behaviour, Difference between Manufacturing and Service Operations | Operation Management. A) offer and acceptance 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? A) when any business relationship exists B) errors and omissions 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 A) underwriting 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. 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. A bilateral contract is an agreement between two parties in which each side agrees to fulfill their side of the bargain. 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? Vegetable B. implied both parties consent to the contract. C) representation A) there must be an offer and acceptance conditional Adhesion clause 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? Which of the following BEST describes a conditional insurance contract. A rating from a rating service company, such as A.M. Best An illustration A sales presentation Direct mailing from an agency, Fraternal Benefit Society has each of the following characteristics EXCEPT Incorporated Without capital stock Exist For profit Exist for the benefit of its members, A plan in which an employer pays insurance benefits from a fund derived from the employer's current revenues is called A self-derived plan A multiple-employer plan A blanket plan A self-funded plan, An insurer's ability to make unpredictable payouts to policyowners is called investment values liquidity assets capital, Ken is a producer who has obtained Consumer Information Reports under false pretenses. 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 Offering payment of approved claims within 30 days after affirming liability. A contract that requires certain conditions or acts by the insured individual. 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"? Where would policy proceeds be paid if both the insured and primary beneficiary were killed in the same accident? Policyowner has the right to select the investment which will provide the greatest return. 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. A life insurance contract guarantees to the beneficiary not only a death benefit, but a payment of a sum of money in perpetuity, called a death benefit for that purpose of insurance coverage. C) aleatory B) concealment Which settlement option pays a stated amount to an annuitant, but no residual value to a beneficiary? A) A contract that requires certain conditions or acts by the insured individual insured A) there is an element of chance and potential for unequal exchange of value or consideration for both parties B) Indemnity Which Of The Following Best Describes A Conditional Insurance Contract. If thats the case, you dont have to worry anymore. B) the insurer's obligations are dependent upon certain acts of the insured individual Bob dies 12 months later. 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. How do marketers use insights regarding the self-concept? The terms and conditions of insurance contracts should be carefully reviewed by policyholders before signing. 2003-2023 Chegg Inc. All rights reserved. Which of these features are held exclusively by variable universal life insurance? Which contract element is insurable interest a component of? D) only when determined by a judge, Xcel Chapter 3 Legal Concepts of the Insuranc, Chapter 3 Exam - Legal Concepts of the Insura, Chapter 4 Exam - Life Insurance - Types of Po, 4 - (Questions) Life Insurance Policies - Pro, Chapter 5: Life Insurance Premiums, Proceeds,, Chapter 4: Type of Insurance Policies Part 1, Chapter 4: Policy Provisions, Options and Rid, Calculus for Business, Economics, Life Sciences and Social Sciences, Karl E. Byleen, Michael R. Ziegler, Michae Ziegler, Raymond A. Barnett, Fundamentals of Engineering Economic Analysis, David Besanko, Mark Shanley, Scott Schaefer, The Cultural Landscape: An Introduction to Human Geography, AP Edition, Marketing Essentials: The Deca Connection, Carl A. Woloszyk, Grady Kimbrell, Lois Schneider Farese, Unit 7 AP Env. D) Conditional, Which of the following is NOT a requirement of a contract? An example of an unfair claims practice would be, Failing to effectuate prompt, fair, and fair equitable settlements of a claim. Which type of life insurance offers flexible premiums, a flexible death benefit, and the choice of how the cash value will be invested? which of the following best describes a conditional insurance contract? B) the contract must be aleatory D) Competent parties, Which of the following BEST describes a conditional insurance contract? offer 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 A) estoppel B. Which of the following does a producer NOT have a fiduciary responsibility to? C) Only the insurer is legally bound 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. 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 other insurance B) Contract of adhesion Q. D) misrepresentation, Which of the following is NOT required in the content of a policy? A type of group that has a constitution and bylaws and has been organized for purposes other than obtaining insurance is called a(n). 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? Contestability clause, In order for a contract to be valid, it must Please check below to know the answer. Question and answer. A life insurance claim which involves a per capita distribution of policy proceeds would be payable to the. B) other insurance Nothing $100,000 $250,000 $500,000, Which type of life insurance is normally associated with a Payor Benefit rider? Which of these factors is NOT taken into account when determining an applicants life insurance needs? Only the insured can change the provisions Competent parties (C) Both parties exchange goods of equal value. WINDOWPANE is the live-streaming app for sharing your life as it happens, without filters, editing, or anything fake. B) Apparent A) Insurer's promise to pay benefits Consideration Countersignature, Which of the following is an example of the insured's consideration? 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. 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. 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? C) there must be legal reasons for entering into the contract The above question Which of the following BEST describes a conditional insurance contract?, Was part of Insurance MCQs & Answers. D) Personal contract, The importance of a representation is demonstrated in what rule? Required fields are marked *. A) warranty C) Implied 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. Legal underwriter, Life Insurance Policies - Provisions, Options, Fundamentals of Financial Management, Concise Edition, Micro Oneliners: Urinary Tract Infections (UT. C) Consideration In the case of an insurance contract, the contracting parties are the claimant and the insurer. If Sharon MUST obtain Mikes signature in order to change the beneficiary, what kind of beneficiary designations is this? Zucchini is the best descriptive word. Bob and Tom start a business. Who assumes the investment risk with a fixed annuity contract? purpose, Insurable interest does NOT occur in which of the following relationships? Ken is a producer who has obtained Consumer Informations Reports under false pretenses. 2003-2023 Chegg Inc. All rights reserved. An example of an unfair claims settlement practice is, Turning down a claim without providing the basis of denial. 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. C.$2,113 Provide funds to help fund retirement Provide funds to help pay taxes Provide funds for funeral expenses Provide tax deductions for premium payments, lower than the typical whole life policy during the first few years and then higher than typical for the remainder, The premium for a Modified whole life policy is higher than the typical whole life policy during the first few years and then lower than typical for the remainder lower than the typical whole life policy during the first few years and then higher than typical for the remainder normally graded over a period of 20 years level for the first 5 years then decreases for the remainder of the policy, The type of policy which pays on the death of the last person is called joint life survivorship life dual life shared life, A life insurance policy that is subject to a contract interest rate is referred to as adjustable life group life term life universal life, a policy that is paid up after only one payment, A single premium cash value policy can be described as a policy that is paid up after only one payment a policy that only requires an annual payment a policy that is guaranteed issue a policy that covers two or more lives, A limited payment whole life policy provides protection for 20 years lifetime protection protection for more than one person discounted premiums, A policyowner may change two policy features on what type of life insurance?

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