Which of the following would be an act of Unfair Discrimination by an insurer? C) Apparent authority Which military service exclusion clause would pay upon his death? Because of this, an insurance contract is considered voidable conditional aleatory unilateral, Who is responsible for assembling the policy forms for insureds? B) Offer and acceptance A) warranty C) aleatory An unintentional violation of Utah insurance law could lead a producer to a fine of up to _____ per violation. Which Of The Following Statements About Personal Selling Is Correct? Ken is a producer who has obtained Consumer Informations Reports under false pretenses. What is the advantage of adding this rider? If Sharon MUST obtain Mikes signature in order to change the beneficiary, what kind of beneficiary designations is this? 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". Only the insurance company has legal obligations. Which of the following does a life insurance policy summary normally include? the terms must be accepted or rejected in full Conditional, Under a contract of adhesion, Preferred risk policies with reduced premiums are issued by insurance companies because the insured has, Better than average mortality or morbidity experience. Expert answered| selymi |Points 23307|. A) offer express authority Required fields are marked *. Insurable interest can be based on the love and affection of individuals related by blood or law An applicant intentionally lying to an insurance company on an application in order to obtain a cheaper premium is an example of During periods of inflation, annuitants will experience a decrease in purchasing power of their payments. A) One party is restored to the same financial position the party was in before the loss occurred. Which of the following BEST describes a conditional insurance contract? Which of the following are the premium payments for a universal life policy NOT used for? 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) 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? 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. Which option was chosen? What is the difference between insurance condition and warranty? Business owner and business client, 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 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. medical expenses covered under Pat's employer-sponsored group health insurance. Which of these statements regarding the annuitant is CORRECT? Answer Explanation: A contract that requires certain conditions or acts by the insured individual. 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? Express Apparent Implied Conditional, The type of multiple protection coverage that pays on the death of the last person is called a(n) joint life policy survivorship life policy annuity joint policy dual life policy, A nonforfeiture option can be used to increase the death benefit, All of these are valid options for an Adjustable Life Policy EXCEPT The policy's premium can be increased or decreased The policy's death benefit can be increased or decreased A nonforfeiture option can be used to increase the death benefit The policy's protection period can be modified, A life insurance contract which accumulates cash values higher than the IRS will allow, 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 prior to age 65 are subject to a 10% penalty, An interest-sensitive life insurance policyowner may be able to withdraw the policy's cash value interest free. B) A contract that has the potential for the unequal exchange of consideration for both parties What does the Group Life underwriting risk selection process help protect insurance companies from? If the other agreement or condition is performed, then the conditional contract is . What is created after policy proceeds are obtained in a lump sum and then immediately invested? After 15 years, the cash value has accumulated to $100,000 and the policy's face amount has become $600,000. D. $2,863. If Mike dies first, the policy proceeds will no longer provide insurance protection will go to Mike's estate will be divided by probate will not be paid until the last brother dies, The gap between the total death benefit and the policy's cash value, What is a corridor in relation to a Universal Life insurance policy? An insurance applicant with a below-average likelihood of loss is typically considered to be a. C) Law of Agency GENERAL LAW OF CONTRACTS A contract is an agreement enforceable by law. The policies continue in force with no change. 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. if the insured lives beyond the 5 years, no benefits are payable. 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? Because of this, an insurance contract is considered A) Insurability A contract that requires certain conditions or acts by the insured individual, According to life insurance contract law, insurable interest exists, The term which describes the fact that both parties of a contract may NOT receive the same value is referred to as. 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. Options 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) Sister and brother D) imposed authority, What makes an insurance policy a unilateral contract? Which type of life insurance offers flexible premiums, a flexible death benefit, and the choice of how the cash value will be invested? A.$1,656 In most insurance policies, the insurer is the only one who makes a legally binding promise to pay insured claims. When initial premium is collected and policy is issued. Bob dies 12 months later. 2003-2023 Chegg Inc. All rights reserved. Which of the following BEST describes a conditional insurance contract? 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? unilateral, Ambiguities in an insurance policy are always resolved in favor of the Because you're already amazing. B) acceptance 2. How does life insurance create an immediate estate? A) Insurable interest both parties consent to the contract. 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. What are conditions in an insurance 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? A life insurance policy that is subject to a contract interest rate is referred to as. Eventually, they retire and dissolve the business. Administrative actions taken against a producer must be reported to the Commissioner within ____ days. Barbaras policy includes a rider which allows her to purchase additional insurance at specific dates or events without evidence of insurability. When handling premiums for an insured, an agent is acting in which capacity? How many days is a temporary producers license valid? Under the McCarran-Ferguson Act, what is the minimum penalty for this? 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. The coverage, conditions, and limitations in the master policy of a group contract can be found in which document? 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 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. Which of these features are held exclusively by variable universal life insurance? A) underwriting Which of these factors is NOT taken into account when determining an applicants life insurance needs? __________. a) a conditional acceptance allows the parties to negotiate the definite terms of the contract upon the completion of the contract. B) the unwritten authority that the agent is assumed to have 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. A) fiduciary bond The terms of the policy typically outline these conditions . In a life or health insurance contract, "consideration" would be the, statements made in the application and the premium, A professional liability for which producers can be sued for mistakes of putting a policy into effect is called. The type of annuity she is seeking is called. 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? $2,406 Of the following dividend options, which of these is taxable? 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) statements made in the application only, C) statements made in the application and the premium, According to life insurance contract law, insurable interest exists Adjustable life policy Modified life policy Endowment policy Universal life policy, How are survivorship life insurance policies helpful in estate planning? 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? C) Indemnity contract Insurance Exam Flashcards | Chegg.com A policyowner is prohibited from making any changes to the policy without the beneficiarys written consent under which beneficiary designation? 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. A) implied authority insurer Zucchini is the best descriptive word. B) implied authority Which of the following Best Describes a Conditional Insurance Contract 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. A) Make whole definitions 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. C) at the time of death Consideration 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. 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 Identify the type of financing (stock or bond) that best answers the question. A) insured C) insurer Only the insurer is legally bound 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 Express How often must an insurance producers license in Utah be renewed? apparent Chapter 3: Legal Concepts Flashcards | Quizlet How often must the Commissioner examine each domestic insurance company? WINDOWPANE is the live-streaming app for sharing your life as it happens, without filters, editing, or anything fake. Write a summary of the main ideas. Bilateral Contract: Definition, How It Works, and Example - Investopedia