which of the following best describes a conditional insurance contract

It allows for a spouse to be added as a rider to a life insurance policy It allows for policy loans to be advanced to the insured in the event of unemployment It allows for cash advances to be paid against the death benefit if the insured becomes terminally ill It allows for a third party to purchase a life insurance policy at a discounted rate and immediately advance a portion of the death benefit, All of these are standard exclusions found in a life insurance policy EXCEPT hazardous occupations aviation disability war, Which dividend option would an insurer invest the policyowner's money and add any interest earnings as the dividends accrue? If she dies 15 years after the policy's inception date, how much will her beneficiary receive? B) Only the insured can change the provisions a. medical expenses covered under Pat's employer-sponsored group health insurance. In exchange, the policyowner pays premiums. The death benefit would be $250,000 $750,000 $375,000 $500,000, What does the word "level" in Level Term describe? B) Law of adhesion 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. Variable life insurance and Universal life insurance are very similar. What types of life insurance are normally used for key employee indemnification? 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. A life insurance policy that is subject to a contract interest rate is referred to as. Which of these statements regarding the annuitant is CORRECT? 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). discreet Use the binomial distribution to find P(x13)P(x \leq 13)P(x13) if the stain removal product's claim is correct. This legal agreement requires prior performance of another agreement or clause in order to be enforceable. performance is conditioned upon a future occurrence. Which of these statements is true? B. The present cash value of the policy equals $250,000. Waiver of premium Juvenile waiver Guaranteed insurability Payor benefit, Which of the following is a reinstatement condition? D) Evident authority, Which of the following is an example of the insured's consideration? 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? Principal Capacity, All of the following are elements of an insurance policy EXCEPT 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. Express D) Intent, Which contract element is insurable interest a component of? She would like to borrow $15,000 against the cash value. Which of these features are held exclusively by variable universal life insurance? A) Sister and brother The policies continue in force with no change. 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 A marathon is 42.2 kilometers. 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). C) the terms must be accepted or rejected in full How soon can the benefit payments begin with a deferred annuity? In order to maintain coverage and make a successful claim, its crucial that policyholders read and understand their insurance contract carefully. fichoh. 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. the insurer's obligations are dependent upon certain acts of the insured individual His insurance agent told him the policy would be paid up if he reached age 100. D) Principal Capacity, A unilateral contract is one in which The death benefit would be. weegy. Expert answered| selymi |Points 23307|. apparent His insurance agent told him the policy would be paid up if he reached age 100. be signed and witnessed by an attorney The gap between the total death benefit and the policys cash value. In the case of an insurance contract, the contracting parties are the claimant and the insurer. 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. Which of the following best describe the term definition. A) implied authority Only the insured pays the premium 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? Which of the following does a life insurance policy summary normally include? D) misrepresentation, Which of the following is NOT required in the content of a policy? D) imposed authority, What makes an insurance policy a unilateral contract? If the insured dies at any time during the 5 years, his beneficiary will receive the policy's face value. B) errors and omissions A.$1,656 All of the following are examples of a Business Continuation Plan EXCEPT. C) Law of large numbers C) Bob's spouse Of the following dividend options, which of these is taxable? C) Charge more premium 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? The policy may be paid up early by using policy dividends. 2003-2023 Chegg Inc. All rights reserved. Sorry, you have Javascript Disabled! 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? 3. 30 seconds. A) Express authority 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. The Fair Credit Reporting Acts main purpose is to, Protect consumers with guidelines regarding credit reporting and distribution, A whole life insurance policy accumulated cash value that becomes, The policy loan value which the insured may borrow against. promises made In this situation, who will receive Bob's policy proceeds? D) only one party makes any kind of enforceable promise, C) the terms must be accepted or rejected in full, What is implied authority defined as? Before using an assumed name in Utah, a producer MUST, Maria would like an annuity that provides a guaranteed accumulation or payout. A) insured A) Authority given in writing to an agent in the agency agreement Aleatory Contract: A contract type in which the parties involved do not have to perform a particular action until a specific event occurs. C) at the time of death 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. other insurance implied authority This is also known as a non-negotiable insurance contract, or an automatic contract. Authority given in writing to an agent in the agency agreement 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? written contract It is the means by which one or more parties bind themselves to certain promises. 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. D) Insurance producers, If a material warranty violation on the part of the insured is found, what recourse does an insurer have? C) A contract where one party "adheres" to the terms of the contract. Term, whole, and universal life insurance. Which of the following would be a valid reason why a policy premium would be higher than the standard premium? 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. (A) Both parties to the contract are bound to the terms. GENERAL LAW OF CONTRACTS A contract is an agreement enforceable by law. One-sided or unfair insurance contracts can, however, exist if they contain provisions that disproportionately benefit one party. Nothing $100,000 $250,000 $500,000, Which type of life insurance is normally associated with a Payor Benefit rider? Which of the following describes a person who is NOT acceptable by an insurer at standard rates because of health history, occupation, or hobbies? D) both the policyowner and the insurer must know all material facts and relevant information, B) only one party (the insurer) makes any kind of legally enforceable promise, Intentional withholding of material facts that would affect an insurance policy's validity is called a(n) Which of the following BEST describes a conditional insurance contract? c. income earned by Pat's spouse. Which of the following BEST describes a conditional insurance contract. Bob dies 12 months later. See answers. A) Contract may be accepted or rejected by the insured, The term which describes the fact that both parties of a contract may NOT receive the same value is referred to as. C) Only the insurer is legally bound the policy provides a straight, level $100,000 of coverage for 5 years. representation C) Contract must have a legal purpose Which of the following statements is true? 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? How does life insurance create an immediate estate? Which of the following is NOT considered rebating? I hope you got the correct answer to your question. Which of the following does a producer NOT have a fiduciary responsibility to? Which dividend option would an insurer invest the policyowners money and add any interest earnings as the dividends accrue? Which of the following best describes a symbol. Insurance interest does NOT occur in which of the following relationships? What is the meaning of par value of stock with respect to the corporate form of organization? C) there must be legal reasons for entering into the contract A) State Insurance Departments Which of the following BEST describes a conditional insurance contract? Julie has a $100,000 30-year mortgage on her new home. implied Which of the following is a requirement to attain an Utah resident producer license? 2 See answers B) Apparent 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. C) Insurable interest b) a contract is an agreement enforceable at law. What is this called? B) Equal consideration is required between the involved parties The present cash value of the policy equals $250,000. B) Consideration Which policy requires an agent to register with the National Association of Securities Dealers (NASD) before selling? A) Tom's spouse The insurers obligation to pay a death benefit upon an approved death claim. A) A contract that requires certain conditions or acts by the insured individual. A) estoppel The terms of the policy typically outline these conditions . Which contract element is insurable interest a component of? During periods of inflation, annuitants will experience a decrease in purchasing power of their payments. 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+15if3

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