which of the following best describes a conditional insurance contract
A) Parties involved in the contract 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? It allows for cash advances to be paid against the death benefit if the insured becomes terminally ill. James is the insured on a life insurance policy where his age was misstated on the application. be filed with the state How could a company manager use a process cost summary to determine if the program to reduce water usage is successful? A. D) misrepresentation, Which of the following is NOT required in the content of a policy? 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). Proof of insurabiilty Changes in the insuring clause Premium increase Premium decrease, What is the name of the provision which states that a copy of the application must be attached to the policy when issued? Producers act in a(n) ________ capacity when holding insurance premiums. What is this an example of? A) 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 features are held exclusively by variable universal life insurance? D) Competent parties, Which of the following BEST describes a conditional insurance contract? 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? B) conditional Eventually, they retire and dissolve the business. C) Charge more premium Utah requires that an insurance producer must complete ___ hour(s) of continuing education on the subject of law and ethics every reporting period. Which of the following would be an act of Unfair Discrimination by an insurer? I hope you got the correct answer to your question. 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. Contestability clause, In order for a contract to be valid, it must The face amount and policy premium are not affected by the payment Before payment of the benefit is made, specific conditions must exist, such as suffering from a terminal illness There may be a dollar limit on the maximum benefit The benefit can be offered as a rider at a specific extra cost or may be at no cost, Which of the following is NOT part of an insurance contract? Dorian exercises a nonforfeiture option by using his life policys cash value to purchase an extended term insurance option. _______ is the authority given to a producer to transact business on behalf of the insurer. Under the McCarran-Ferguson Act, what is the minimum penalty for this? Both partners are still married at the time of Bob's death. D) Tom, The deeds and actions of a producer indicate what kind of authority? The amount of his disability income payments for an on-the-job injury may be reduced by. A) One party is restored to the same financial position the party was in before the loss occurred. Which of the following are the premium payments for a universal life policy NOT used for? 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 Barbaras policy includes a rider which allows her to purchase additional insurance at specific dates or events without evidence of insurability. B) A contract that has the potential for the unequal exchange of consideration for both parties Increasing Term Life policy Nonparticipating policy Modified Whole Life policy Universal Life policy, What is the automatic continuance of insurance coverage referred to as? Because you're already amazing. Which of these would NOT be an unfair claims practice? D) the contract must be a contract of adhesion, C) there must be legal reasons for entering into the contract, Ambiguities in an insurance policy are always resolved in favor of the D) Personal contract, The importance of a representation is demonstrated in what rule? An example of an unfair claims practice would be, Failing to effectuate prompt, fair, and fair equitable settlements of a claim. D) Risk insured against, A professional liability for which producers can be sued for mistakes of putting a policy into effect is called claim forms B) Offer and acceptance Variable life insurance and Universal life insurance are very similar. 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. B) only one party (the insurer) makes any kind of legally enforceable promise Bob dies 12 months later. D) Evident authority, Which of the following is an example of the insured's consideration? What are an applicants statements concerning occupation, hobbies, and personal health history regarded as? The authority granted to a licensed producer is provided via the A minimum of 12 months after date of purchase, Insurance premium is determined by each of the following factors EXCEPT. What types of life insurance are normally used for key employee indemnification? What is the purpose for having an accelerated death benefit on a life insurance policy? A) State Insurance Departments After being properly appointed by the insurer. What kind of policy is this? An unintentional violation of Utah insurance law could lead a producer to a fine of up to _____ per violation. GENERAL LAW OF CONTRACTS A contract is an agreement enforceable by law. 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. C) Consideration Policy loans are disallowed The premium payments will be tax deductible Pre-death distributions are typically taxable Withdrawals will be prohibited, When a whole life policy is surrendered, income taxes may be owed, All of these statements concerning whole life insurance are false EXCEPT Policyowner can take out a policy loan up to the face amount When a whole life policy is surrendered, income taxes may be owed Coverage is normally temporary The death benefit is not affected by outstanding loans, A life insurance policy which contains cash values that vary according to its investment performance of stocks is called Increasing Term Life Modified Whole Life Variable Whole Life Adjustable Whole Life, Which of these riders will pay a death benefit if the insured's spouse dies? The present cash value of the policy equals $250,000. A. 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. D) Legal Purpose, Which of the following is present when an applicant stands to lose value if the insured dies? Rob recently died at age 60. Are you looking for the correct answer to the question Which of the following BEST describes a conditional insurance contract?? Which of these statements is true? other insurance The terms and conditions of insurance contracts should be carefully reviewed by policyholders before signing. warranty If the other agreement or condition is performed, then the conditional contract is . See answers. After 15 years, the cash value has accumulated to $100,000 and the policy's face amount has become $600,000. What was his total bill? the terms must be accepted or rejected in full C) Only the insurer is legally bound A) implied authority acceptance Who prosecutes crimes that involve the violation of insurance laws that fall under US Code 1033? Tom's spouse Bob's estate Bob's spouse Tom, Which contract element is insurable interest a component of? B) Indemnity Which of the following BEST describes a conditional insurance contract? If the consumer price index had gone up 4%, how much may Ron increase the face value of the policy? Dual Life insurance Joint Life insurance Last Survivor Life insurance Shared Life insurance, Index whole life insurance contains a securities component that acts as a(n) hedge against inflation premium stabilizer means to lowering taxes on earnings incentive to purchase more coverage, Which of the following are the premium payments for a Universal life policy NOT used for? Which of the following is a reinstatement condition? Restoring an insured to the same condition as before a loss is an example of the principle of. A unilateral contract is one in which only one party makes a legally binding guarantee. D) underwriter, Reasonably necessary acts that an agent must perform for carrying out his/her expressly authorized duties are covered by an agent's 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. If she dies 15 years after the policys inception date, how much will her beneficiary receive? What is the meaning of par value of stock with respect to the corporate form of organization? underwriting ______ is NOT an element of a valid contract. When the term insurance expires. there must be an offer and acceptance C) aleatory 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. Legal Consideration Competent parties Countersignature, A contract that requires certain conditions or acts by the insured individual, Which of the following BEST describes a conditional insurance 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. After a number of years, the policy's cash value accumulates to $50,000 and the face amount becomes $350,000. B) Offer and acceptance Multiple-choice. B) only an offer Under the McCarran-Ferguson Act, what is the minimum penalty for this? WINDOWPANE is the live-streaming app for sharing your life as it happens, without filters, editing, or anything fake. B) written contract Which of the following is NOT considered rebating? C) there must be legal reasons for entering into the contract 2003-2023 Chegg Inc. All rights reserved. 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. B) acceptance Updated 10/6/2017 9:10:03 AM. B) implied authority A contract that requires certain conditions or acts by the insured individual. Only the insurance company has legal obligations. 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? A person who is a nonsmoker, of average weight, and in excellent health would most likely be in which risk classification? Because of this, an insurance contract is considered voidable conditional aleatory unilateral, Who is responsible for assembling the policy forms for insureds? Events are those which cannot be controlled by either . 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. A) Unilateral (B) Both parties adhere to the contract. D) Insurance producers, If a material warranty violation on the part of the insured is found, what recourse does an insurer have? However, corporations also can raise money by selling bonds or issuing additional shares of stock. Who is responsible for assembling the policy forms for insureds? Insurance interest does NOT occur in which of the following relationships? If thats the case, you dont have to worry anymore. B) Period to which the coverage exists Which of the following does a life insurance policy summary normally include? Only the insurer is legally bound which of the following best describes a conditional insurance contract? the insurer's obligations are dependent upon certain acts of the insured individual 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? Accelerated death benefit rider Waiver of premium rider Extended term option Decreasing term insurance. underwriter, Life Insurance Policies - Provisions, Options, Fundamentals of Financial Management, Concise Edition, Micro Oneliners: Urinary Tract Infections (UT. A non-contributory health insurance plan helps the insurer avoid. 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? 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. Premium clause apparent authority 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. 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? Which of the following best describes how you analyze a fiction text? Only the insured can change the provisions Peril Hazard Loss factor Liability, Which of these techniques will remove the risk of losing money in the stock market by never purchasing stocks? D) Conditional, Which of the following is NOT a requirement of a contract? 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. A) Tom's spouse A) Insurability Which course of action is the insurer entitled to when deliberate concealment is committed by the insured? 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? 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. 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 Which of the following is the best descriptive word? C) Insurable interest The coverage, conditions, and limitations in the master policy of a group contract can be found in which document? C) Materiality of concealment C) Bob's spouse What kind of policy is this? A) voidable Craig purchased a life insurance policy for enabling his heirs to pay estate taxes. 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 A) Competent parties Which of these statements regarding the annuitant is CORRECT? When does a life insurance policy typically become effective? Apparent 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.
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