A minimum of 12 months after date of purchase, Insurance premium is determined by each of the following factors EXCEPT. The agent's obligation to provide the proper amount of coverage The insurer's obligation to return all premiums upon an approved death claim The insurer's obligation to pay a death benefit upon an approved death claim The agent's obligation to pay a death benefit upon an approved death claim, Of the following dividend options, which of these is taxable? The policies continue in force with no change. be signed and witnessed by an attorney I hope you got the correct answer to your question. collateral, What is implied authority defined as? Risk Hazard Indemnity Peril, Insurance companies determine risk exposure by which of the following? 2003-2023 Chegg Inc. All rights reserved. How soon can the benefit payments begin with a deferred annuity? Which of the following best describes a symbol. After being properly appointed by the insurer. Food C. Plant D. Zucchini. which of the following best describes a conditional insurance contract B) Bob's estate What guarantees that the statements supplied by an insurance applicant are true? An insurance contract usually involves an exchange of consideration between both parties: the insurer agrees to provide coverage and pay claims in the event of a loss, and the policyholder agrees to pay premiums in return. The policies continue in force with no change. A) One party is restored to the same financial position the party was in before the loss occurred B) The unequal exchange of value or consideration for both parties C) One party (the insurance company) prepares the contract with no negotiation between the applicant and insurer D) Only one party (the insurer) makes any kind of enforceable promise Which of the following is CORRECT regarding the death benefit amount? 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 does life insurance create an immediate estate? Declarations Entire contract Waivers Conditions, A whole life policy option where extended term insurance is selected is called a(n) dividend option settlement option nonforfeiture option interest-only option, Which of these would limit a company's liability to provide insurance coverage? A contract that requires certain conditions or acts by the insured individual. 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. A Dalhousie University student training for distance running finds that, after running for x hours, her distance traveled, in kilometers, is given by, y=f(x)={10xif0x35x+15if3Which of the following best describes a symbol Bob dies 12 months later. Use the binomial distribution to find P(x13)P(x \leq 13)P(x13) if the stain removal product's claim is correct. Guaranteed Insurability rider Family term insurance rider Family whole insurance rider Payor benefit rider, A partial surrender is allowed in which of the following life policies? 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? Shirley has a $500,000 10-year-non-renewable level term life policy. A) Parties involved must be competent A) Express authority A conditional contract, also called a hypothetical contract, is a contract agreement that only requires performance once the delineated conditions are met. Which of these would NOT be an unfair claims practice? How do marketers use insights regarding the self-concept? C) Charge more premium weegy. voidable C) A contract where one party adheres to the terms of the contract An insurer's claim settlement practices are regulated by the Securities and Exchange Commission (SEC) National Association of Claims Adjusters (NACA) National Association of Insurance Commissioners (NAIC) State insurance departments, A life insurance company has transferred some of its risk to another insurer. Chapter 3: Legal Concepts Flashcards | Quizlet This is also known as a non-negotiable insurance contract, or an automatic contract. The policy automatically converts to whole life after the 10-year period The face amount will remain constant and the premium will increase over the 10-year period The premium will remain constant and the face amount will increase over the 10-year period The face amount and premium will remain constant over the 10-year period, will no longer provide insurance protection, Shawn, Mike, and Dave are brothers who have a $100,000 "first to die" joint life policy covering all three of their lives. 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. B) conditional 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. D) Personal contract, The importance of a representation is demonstrated in what rule? All of the following are considered appropriate uses if life insurance for business purposes EXCEPT, Protecting the business by covering entry level employees with life insurance, Level premium permanent insurance accumulates a reserve that will eventually. A.$1,656 Which of these factors is NOT taken into account when determining an applicants life insurance needs? Julie has a $100,000 30-year mortgage on her new home. $2,406 Which dividend option would an insurer invest the policyowners money and add any interest earnings as the dividends accrue? 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"? 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. What would happen if a life insurance applicant is given a conditional receipt? In order for a contract to be valid, it must. The power given to an individual producer that is not specifically addressed in his/her contract is considered what type of authority? Sorry, you have Javascript Disabled! When initial premium is collected and policy is issued. Under the Fair Credit Reporting Act, what is the maximum penalty that may be imposed in Ken? 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? A) underwriting C) Only the insurer is legally bound the policy provides a straight, level $100,000 of coverage for 5 years. B) other insurance One-sided or unfair insurance contracts can, however, exist if they contain provisions that disproportionately benefit one party. B) implied authority offer Free Flashcards about Stack #2476860 - StudyStack A) there is an element of chance and potential for unequal exchange of value or consideration for both parties Death benefits Cash value Loading costs Separate account investments, Which policy feature makes a universal life policy different from a whole life policy? D) Insurance producers, If a material warranty violation on the part of the insured is found, what recourse does an insurer have? 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. She is receiving the death benefit in payments of $10,000 per month until the principal and interest has been paid out. What is the name of the provision which states that a copy of the application must be attached to the policy when issued? A contract that requires certain conditions or acts by the insured individual Which of these is considered to be a Living Benefit option in a life insurance policy? the contract must be a contract of adhesion, there must be legal reasons for entering into the contract, What makes an insurance policy a unilateral contract? The terms of the policy typically outline these conditions, which may include paying premiums on time and maintaining the insured property in good condition. Under the Fair Credit Reporting Act, what is the maximum penalty that may be imposed on Ken? discreet apparent implied express, Bob and Tom start a business. C) Law of Agency C) apparent authority C) negotiation between the involved parties Sharing commissions with a producer licensed in the same line of business. Conditional Contracts: Everything You Need to Know - UpCounsel Only the insurance company has legal obligations. there must be an offer and acceptance C) the authority to represent the insurer the terms must be accepted or rejected in full 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? ______ is NOT an element of a valid contract. A) A contract that requires certain conditions or acts by the insured individual. A) implied authority 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"? B) only one party (the insurer) makes any kind of legally enforceable promise 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". Lisa has recently bought a fixed annuity. 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? 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. Insurance Cram Ch. 6 Flashcards | Chegg.com B) guarantee In this situation, who will receive Bob's policy proceeds? 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? A) Only the insured pays the premium A) A contract that requires certain conditions or acts by the insured individual Express 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. 2003-2023 Chegg Inc. All rights reserved. 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. d) an agreement requires a definite offer and an indefinite acceptance. C) The insured and the insurer contribute equally to the contract. A policyowner can receive a percentage payment of the death benefits prior to death by using what kind of 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? Which of the following best describe the term definition A) One party is restored to the same financial position the party was in before the loss occurred. Which of the following best describes the MIB? Premium clause Consideration clause Adhesion clause Contestability clause, When the principal gives the agent authority in writing, it's referred to as express authority implied authority apparent authority imposed authority, Ambiguities in an insurance policy are always resolved in favor of the insured producer insurer underwriter, ______ is NOT an element of a valid contract. Term, whole, and universal life insurance. Elizabeth is the beneficiary of a life insurance policy. 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 is a TRUE statement? Vegetable B. Provide death benefits Provide money for retirement Provide living benefits Provide money for college, The Do Not Call Registry offers exemptions for calls placed from all of the following EXCEPT charities political organizations insurance sales calls surveys, protect consumers with guidelines regarding credit reporting and distribution, The Fair Credit and Reporting Act's main purpose is to assist in the underwriting of insurance policies protect insurers from an applicant's misrepresentation protect consumers with guidelines regarding credit reporting and distribution assist an insurer in determining an applicant's creditworthiness, What kind of life insurance policy issued by a mutual insurer provides a return of divisible surplus? Question. It is not necessary for the parties to exchange unequal consideration in a conditional insurance contract. c) a contract must be in writing. B) Rescind the policy Multiple-choice. Which type of multiple protection policy pays on the death of the last person? C) Contract must have a legal purpose The insured does not meet established underwriting requirements, The type of multiple protection coverage that pays on the death of the last person is called a(n). D) Consideration, What are an applicant's statements concerning occupation, hobbies, and personal health history regarded as? An insurance contract usually involves an exchange of consideration between both parties: the insurer agrees to provide coverage and pay claims in the event of a loss, and the policyholder agrees to pay premiums in return. She would like to borrow $15,000 against the cash value. His insurance agent told him the policy would be paid up if he reached age 100. C) Insurable interest 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. B) Equal consideration is required between the involved parties Ken is a producer who has obtained Consumer Informations Reports under false pretenses. (D) Only one party is legally bound to the contract. 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 Chapter 1 - Completing the application, underwriting, and - Chegg With a life insurance contract, the insurer binds itself to pay a certain sum upon the death of the insured. The death benefit would be. Both partners are still married at the time of Bob's death. Insurance Exam Flashcards | Chegg.com C) Legal purpose A type of group that has a constitution and bylaws and has been organized for purposes other than obtaining insurance is called a(n). Expert answered|Malekith22|Points 0| Log in for more information. Typically, bilateral contracts involve an equal obligation or. A) Insurability 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? Orissa purchases a 10-year level term life insurance policy that has a death benefit of $200,000. B) only an offer Karen is a producer who has obtained personal information about a client without having a legitimate reason to do so. Which Of The Following Best Describes A Conditional Insurance Contract Authority given in writing to an agent in the agency agreement 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 Only the insured pays the premium Which of these legislation Acts is designed to protect consumers with guidelines regarding credit reporting and distribution? b. benefits paid under workers compensation. Adhesion clause D) Competent parties, Which of the following BEST describes a conditional insurance contract? Post thoughts, events, experiences, and milestones, as you travel along the path that is uniquely yours. Which of the following statements is TRUE? A new stain removal product claims to completely remove the stains on 909090 percent of all stained garments. What are an applicants statements concerning occupation, hobbies, and personal health history regarded as? LIFE INSURANCE LICENSING EXAM Flashcards | Chegg.com
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