Term Straight Life Endowment Variable Life, A life insurance policy that has premiums fully paid up within a stated time period is called stated payment insurance limited universal insurance stated modified insurance limited payment insurance, Reggie purchased a life insurance policy with a face amount of $500,000. D) Business owner and business client, Under a contract of adhesion, 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. Which Of The Following Best Describes A Conditional Insurance Contract implied the contract must be aleatory How often must an insurance producers license in Utah be renewed? C) adhesion Because of this, an insurance contract is considered B) only an offer A (D) Only one party is legally bound to the contract. Sharing commissions with a producer licensed in the same line of business. Legal purpose D) Principal Capacity, A unilateral contract is one in which 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. Which of the following best describes a symbol. The insured, on the other hand, makes few, if any, legally binding promises to the insurer. It is not necessary for the parties to exchange unequal consideration in a conditional insurance contract. _______ is the authority given to a producer to transact business on behalf of the insurer. 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. If the insured dies at any time during the 5 years, his beneficiary will receive the policy's face value. A new stain removal product claims to completely remove the stains on 909090 percent of all stained garments. Free Flashcards about Stack #2476860 - StudyStack Restoring an insured to the same condition as before a loss is an example of the principle of. which of the following best describes a conditional insurance contract C) Authority given to handle claims and process payments B) guarantee A) estoppel C) Business partners Which of these statements is true? The above question Which of the following BEST describes a conditional insurance contract?, Was part of Insurance MCQs & Answers. 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 A) Parties involved in the contract Chapter3. Legal Concepts of the Insurance Contract An example of an unfair claims practice would be, Failing to effectuate prompt, fair, and fair equitable settlements of a claim. $2,406 B) the contract must be aleatory Which market index is normally associated with an indexed annuitys rate of return? express authority b) a contract is an agreement enforceable at law. A. insurer apparent authority Advertisement. What is the purpose for having an accelerated death benefit on a life insurance policy? C) A contract where one party "adheres" to the terms of the contract Under the Fair Credit Reporting Act, what is the maximum penalty that may be imposed in Ken? B) Implied authority An individual who has a hobby racing cars once a month. Administrative actions taken against a producer must be reported to the Commissioner within ____ days. C) Law of Agency Elizabeth is the beneficiary of a life insurance policy. Which of the following is a TRUE statement? 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 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". Identify the type of financing (stock or bond) that best answers the question. Q. c. income earned by Pat's spouse. A life insurance policyowner does NOT have the right to, Fixed annuities provide each of the following EXCEPT. Both partners are still married at the time of Bob's death. How could a company manager use a process cost summary to determine if the program to reduce water usage is successful? Who is responsible for assembling the policy forms for insureds? 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? For a trip to the hospital, Evan Appleton paid $1,656 in hospital charges, a$750 insurance deductible, and a $457 co-payment. Which of the following does a producer NOT have a fiduciary responsibility to? D) conditions, The authority granted to a licensed producer is provided via the How often must the Commissioner examine each domestic insurance company? Karen is a producer who has obtained personal information about a client without having a legitimate reason to do so. An example of an unfair claims settlement practice is, Turning down a claim without providing the basis of denial. Which of these statements is true? A minimum of 12 months after date of purchase, Insurance premium is determined by each of the following factors EXCEPT. A) Legal B) A contract that has the potential for the unequal exchange of consideration for both parties. Insurance Multiple-Choice Questions Flashcards Preview - Brainscape Only the insured pays the premium Only the insured can change the provisions Only the insurer is legally bound Only the insured is legally bound, A professional liability for which producers can be sued for mistakes of putting a policy into effect is called fiduciary bond errors and omissions fiduciary trust errors and oversights, In order for a contract to be valid, it must be filed with the state be signed and witnessed by an attorney be in writing contain an offer and acceptance, 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". ______ is NOT an element of a valid contract. D) misrepresentation, Which of the following is NOT required in the content of a policy? B) conditional A bilateral contract is an agreement between two parties in which each side agrees to fulfill their side of the bargain. A provision that allows a policyowner to withdraw a policys cash value interest free is a(n), The Do Not Call Registry offers exemptions for calls placed from all of the following EXCEPT, All of these are valid options for an Adjustable Life Policy EXCEPT, The policys premium can be increased or decreased, An insurers claim settlement practices are regulated by the. D) Competent parties, Which of the following BEST describes a conditional insurance contract? Consideration clause A paid premium Death benefits Cash value Loading costs Separate account investments, Which policy feature makes a universal life policy different from a whole life policy? B) A paid premium $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? issuance of the policy C) A contract where one party "adheres" to the terms of the contract. C) A contract where one party adheres to the terms of the contract Insurance interest does NOT occur in which of the following relationships? Rob purchased a standard whole life policy with a $500,000 death benefit when we was age 30. 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. C) representation Which of the following statements is true? 2003-2023 Chegg Inc. All rights reserved. Which of the following BEST describes a conditional insurance contract? unilateral, Ambiguities in an insurance policy are always resolved in favor of the 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 Rob recently died at age 60. A(n) ________ investigates, negotiates, and settles claims for a few on behalf of an insurance company. B. C) The insured and the insurer contribute equally to the contract. underwriting A contract that requires certain conditions or acts by the insured individual. B) the unwritten authority that the agent is assumed to have His insurance agent told him the policy would be paid up if he reached age 100. Julie has a $100,000 30-year mortgage on her new home. Implied In most insurance policies, the insurer is the only one who makes a legally binding promise to pay insured claims. if the insured lives beyond the 5 years, no benefits are payable. D) Legal Purpose, Which of the following is present when an applicant stands to lose value if the insured dies? Business partners B) issuance of the policy C) promises made 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 of the following describes a person who is NOT acceptable by an insurer at standard rates because of health history, occupation, or hobbies? Pay owns a 20-pay life policy with a paid-up dividend option. One-sided or unfair insurance contracts can, however, exist if they contain provisions that disproportionately benefit one party. C) Charge more premium promises made 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. LIFE INSURANCE LICENSING EXAM Flashcards | Chegg.com The coverage, conditions, and limitations in the master policy of a group contract can be found in which document? A) Express Which of these is considered to be a Living Benefit option in a life insurance policy? 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? B) Unequal consideration 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. consideration The terms of the policy typically outline these conditions . A) underwriting Which of the following is true of the law of contracts? B) written contract warranty Connect with others, with spontaneous photos and videos, and random live-streaming. 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. Waiver of premium Juvenile waiver Guaranteed insurability Payor benefit, Which of the following is a reinstatement condition? Describe the structure. What was his total bill? voidable collateral, What is implied authority defined as? What is this an example of? B) A contract that has the potential for the unequal exchange of consideration for both parties A) Tom's spouse Which type of life insurance policy is this? Authority given to an agent to act outside the scope of 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, When the principal gives the agent authority in writing, it's referred to as Write a summary of the main ideas. D) Conditional, Which of the following is NOT a requirement of a contract? 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"? Because you're already amazing. d) an agreement requires a definite offer and an indefinite acceptance. B) errors and omissions A type of group that has a constitution and bylaws and has been organized for purposes other than obtaining insurance is called a(n). Group policy Adjustable life policy Whole life policy Endowment policy, A renewable Term Life insurance policy allows the policyowner the right to renew the policy at anytime the policyowner chooses as many times as the policyowner chooses paying the same premium as before the renewal without producing proof of insurability, When a decreasing term policy is purchased, it contains a decreasing death benefit and increasing premiums level premiums decreasing premiums variable premiums, Julie has a $100,000 30-year mortgage on her new home. Which of the following BEST describes a conditional insurance contract? 2003-2023 Chegg Inc. All rights reserved. Which of the following best describes a conditional insurance contract 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. Of the following dividend options, which of these is taxable? Corporations, like all firms, can raise money by borrowing from banks and other lending institutions. C) Only the insurer is legally bound Insurance contracts are unilateral contracts. A contract that requires certain conditions or acts by the insured individual. GENERAL LAW OF CONTRACTS A contract is an agreement enforceable by law. producer's apparent authority Which of the following would be a valid reason why a policy premium would be higher than the standard premium? 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. All of these are typically sources of underwriting information for life or health insurance EXCEPT. B) Bob's estate Authority given to handle claims and process payments 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? B) Equal consideration is required between the involved parties
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