The terms of the policy typically outline these conditions . C) aleatory Express 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? Adjustable whole life Universal life Decreasing term life Limited whole life, Which type of life insurance policy pays the face amount at the end of the specified period if the insured is still alive? Policy Summary Buyer's Guide Entire Contract Entire Policy, It allows for cash advances to be paid against the death benefit if the insured becomes terminally ill, What is the purpose for having an accelerated death benefit on a life insurance policy? (C) Both parties exchange goods of equal value. 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. B) guarantee Chapter 1 - Completing the application, underwriting, and - Chegg Which contract element is insurable interest a component of? 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. insured A) there is an element of chance and potential for unequal exchange of value or consideration for both parties The terms and conditions of insurance contracts should be carefully reviewed by policyholders before signing. the terms must be accepted or rejected in full A) insured B) Period to which the coverage exists Bob dies 12 months later. Which of the following BEST describes a conditional insurance contract? Completing all applications and collecting initial premiums. warranty guarantee representation collateral, there must be legal reasons for entering into the contract, Legal purpose is a term used in contract law meaning there must be an offer and acceptance the contract must be aleatory there must be legal reasons for entering into the contract the contract must be a contract of adhesion, In an insurance contract, the element that shows each party is giving something of value is called offer acceptance consideration purpose, What makes an insurance policy a unilateral contract? D) Only the insured is legally bound, Bob and Tom start a business. D) Consideration clause, When the principal gives the agent authority in writing, it's referred to as B) producer 3. Which Of The Following Best Describes A Conditional Insurance Contract. nonparticipating life insurance policy participating life insurance policy divisible surplus life insurance policy straight life insurance policy, Which of the following is considered to be an event or condition that increases the probability of an insured's loss? All of the following are examples of a Business Continuation Plan EXCEPT. Waiver of premium Juvenile waiver Guaranteed insurability Payor benefit, Which of the following is a reinstatement condition? B) acceptance Which of the following does a life insurance policy summary normally include? One-sided or unfair insurance contracts can, however, exist if they contain provisions that disproportionately benefit one party. 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? Accelerated death benefit rider Waiver of premium rider Extended term option Decreasing term insurance. Insurance interest does NOT occur in which of the following relationships? Provide an opinion. Rob recently died at age 60. B) written contract 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. A non-contributory health insurance plan helps the insurer avoid. imposed authority, In an insurance contract, the element that shows each party is giving something of value is called performance is conditioned upon a future occurrence. A person who is a nonsmoker, of average weight, and in excellent health would most likely be in which risk classification? 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? Which of the following best describes a conditional insurance contract It is the means by which one or more parties bind themselves to certain promises. 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? Tom's spouse Bob's estate Bob's spouse Tom, Which contract element is insurable interest a component of? the policy provides a straight, level $100,000 of coverage for 5 years. 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? The coverage, conditions, and limitations in the master policy of a group contract can be found in which document? Competent parties apparent B) implied authority 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. C) Apparent authority Under a life insurance policy, what does the insuring clause state? Adjustable life insurance Decreasing term insurance Increasing term insurance Modified life insurance, A spouse and child can be added to the primary insured's coverage as what kind of rider? written contract C) Competent parties Vegetable B. This is an example of: An example of unfair discrimination would be, When an insurer charges a higher rate for insurance based on an insureds race, religion, or national origin, Fixed period settlement options are considered to be a form of a(n). B) Parent and children Of the following dividend options, which of these is taxable? The type of annuity she is seeking is called. The above question Which of the following BEST describes a conditional insurance contract?, Was part of Insurance MCQs & Answers. Insurers must maintain files of all documents used for solicitation for ____ year(s) after the last authorizes date of use. Which of the following statements is true? c) a contract must be in writing. Orissa purchases a 10-year level term life insurance policy that has a death benefit of $200,000. 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 would be a valid reason why a policy premium would be higher than the standard premium? 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. the contract is voidable upon proof of fraud. $2,406 B) Apparent Multiple-choice. An example of an unfair claims practice would be, Failing to effectuate prompt, fair, and fair equitable settlements of a claim. D) Legal Purpose, Which of the following is present when an applicant stands to lose value if the insured dies? Bob and Tom start a business. What kind of policy is this? be filed with the state B. $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? Craig purchased a life insurance policy for enabling his heirs to pay estate taxes. Authority given to handle claims and process payments Where would policy proceeds be paid if both the insured and primary beneficiary were killed in the same accident? B) Unequal consideration 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". Preferred risk policies with reduced premiums are issued by insurance companies because the insured has, Better than average mortality or morbidity experience. 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. What is the meaning of par value of stock with respect to the corporate form of organization? _______ is the authority given to a producer to transact business on behalf of the insurer. 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. C.$2,113 In order to maintain coverage and make a successful claim, its crucial that policyholders read and understand their insurance contract carefully. A) A contract that requires certain conditions or acts by the insured individual. A) there is the potential for an unequal exchange of value b. benefits paid under workers compensation. 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. 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. Legal purpose Adjustable universal life policy Flexible universal life policy Variable universal life policy Modified universal life policy, Jonas is a whole life insurance policyowner and would like to add coverage for his two children. When the principal gives the agent authority in writing, its referred to as, The terms must be accepted or rejected in full. Which of the following best describes a symbol. A type of group that has a constitution and bylaws and has been organized for purposes other than obtaining insurance is called a(n). aleatory Accelerated death benefit An example of an unfair claims practice would be Insurer's promise to pay benefits d) an agreement requires a definite offer and an indefinite acceptance. Term, whole, and universal life insurance. Can be converted to permanent coverage without evidence of insurability Coverage can be different for each child Premiums on this rider are not required until the limiting age is reached Increases the policy's overall cash value, Which type of policy combines the flexibility of a universal life policy with investment choices? In this situation, who will receive Bob's policy proceeds? Use the binomial distribution to find P(x13)P(x \leq 13)P(x13) if the stain removal product's claim is correct. C) statements made in the application and the premium offer 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. In this situation, who will receive Bob's policy proceeds? B) A contract that has the potential for the unequal exchange of consideration for both parties The face amount and premium will remain constant over the 10-year period. A) A contract that requires certain conditions or acts by the insured individual Science Study Guide Questions. Write a summary of the main ideas. C) apparent authority D) Risk insured against, A professional liability for which producers can be sued for mistakes of putting a policy into effect is called 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. A) Sue the insured Apparent b) a contract is an agreement enforceable at law. A) Insurable interest I hope you got the correct answer to your question. Chapter 3: Legal Concepts Flashcards | Quizlet B) A contract that has the potential for the unequal exchange of consideration for both parties A) Authority given in writing to an agent in the agency agreement a. medical expenses covered under Pat's employer-sponsored group health insurance. D) misrepresentation, Which of the following is NOT required in the content of a policy? The insurers obligation to pay a death benefit upon an approved death claim. It is not necessary for the parties to exchange unequal consideration in a conditional insurance contract. there is the potential for an unequal exchange of value
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