Which of the following is an annuity that is linked to a market-related index? Premium clause B) Period to which the coverage exists 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. According to the Affordable Care Act (ACA), insurers can no longer deny health coverage due to pre-existing conditions unless that plan is a (n) Grandfathered plan Accident plan Individual plan Group plan Grandfathered plan C) Legal purpose D) misrepresentation, Which of the following is NOT required in the content of a policy? Expert answered| selymi |Points 23307|. 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". The terms of the policy typically outline these conditions, which may include paying premiums on time and maintaining the insured property in good condition. Please check below to know the answer. C) the contract has been prepared by one party (the insurance company) with no negotiation between the applicant and the insurer 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? underwriting A) Insurability Which of the following would be considered an underwriting duty of an agent? Preferred risk policies with reduced premiums are issued by insurance companies because the insured has, Better than average mortality or morbidity experience. apparent Which of the following does a producer NOT have a fiduciary responsibility to? Which of the following BEST describes a conditional insurance contract? The above question Which of the following BEST describes a conditional insurance contract?, Was part of Insurance MCQs & Answers. A policy containing exclusions or limits that are not clearly disclosed to the policyholder, or a premium that is significantly higher than the risk covered, could be considered unfair or one-sided. 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. 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? How often must the Commissioner examine each domestic insurance company? In this situation, who will receive Bob's policy proceeds? Which of these statements is true? B) Equal consideration is required between the involved parties C) representation insured 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? B) Consideration weegy. In this situation, who will receive Bob's policy proceeds? if the insured lives beyond the 5 years, no benefits are payable. 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? implied authority Which settlement option pays a stated amount to an annuitant, but no residual value to a beneficiary? claim forms B) the unwritten authority that the agent is assumed to have Typically, bilateral contracts involve an equal obligation or. Which of the following would be an act of Unfair Discrimination by an insurer? Shirley has a $500,000 10-year-non-renewable level term life policy. underwriter, Life Insurance Policies - Provisions, Options, Fundamentals of Financial Management, Concise Edition, Micro Oneliners: Urinary Tract Infections (UT. the contract is voidable upon proof of fraud. Which option was chosen? B) Unequal consideration D) Tom, The deeds and actions of a producer indicate what kind of authority? 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). An example of an unfair claims practice would be, Failing to effectuate prompt, fair, and fair equitable settlements of a claim. What does the word level in Level Term describe? If xxx actually turns out to be 131313, what do you think of the claim? D) conditions, The authority granted to a licensed producer is provided via the (C) Both parties exchange goods of equal value. Competent parties Offer and acceptance Consideration Legal purpose, What are an applicant's statements concerning occupation, hobbies, and personal health history regarded as? guarantee A) Competent parties The gap between the total death benefit and the policys cash value. D) Risk insured against, A professional liability for which producers can be sued for mistakes of putting a policy into effect is called Multiple-choice. Sister and brother Parent and children Business partners Business owner and business client, The deeds and actions of a producer indicate what kind of authority? 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. warranty AzAnswer team is here with the right answer to your question. C) the terms must be accepted or rejected in full imposed authority, In an insurance contract, the element that shows each party is giving something of value is called __________. C) Competent parties 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? 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 B) Parent and children Rob recently died at age 60. An applicants character and personal habits can be obtained for underwriting purposes from which source? B. The principle of insurable interest, in regards to a life insurance contract, is accurately described in which statement? At what point may a producer sell insurance for an insurer? B) Bob's estate The authority granted to a licensed producer is provided via the A) Express When the term insurance expires. Aleatory Contract: A contract type in which the parties involved do not have to perform a particular action until a specific event occurs. A policyowner can receive a percentage payment of the death benefits prior to death by using what kind of contract? Apparent 0 Answers/Comments. 1 pt. The policies continue in force with no change. 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? How often must an insurance producers license in Utah be renewed? The insurers obligation to pay a death benefit upon an approved death claim. 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. GENERAL LAW OF CONTRACTS A contract is an agreement enforceable by law. C) Insurance carriers 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 insurer A fixed cash value A flexible premium schedule A fixed death benefit The ability to take out a policy loan, The least expensive option to pay off a 30-year mortgage balance would be convertible term life decreasing term life adjustable term life increasing term life, Pre-death distributions are typically taxable, Which of these describes the result of a modified endowment contract that failed to meet the seven-pay test? Advertisement. Which of these riders will pay a death benefit if the insureds spouse dies? A.$1,656 Corporations, like all firms, can raise money by borrowing from banks and other lending institutions. 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? Legal A policyowner is prohibited from making any changes to the policy without the beneficiarys written consent under which beneficiary designation? B) only an offer What is a corridor in relation to a Universal Life insurance policy? B) A contract that has the potential for the unequal exchange of consideration for both parties 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. 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". producer's apparent authority C) at the time of death B) A paid premium A conditional contract, also called a hypothetical contract, is a contract agreement that only requires performance once the delineated conditions are met. D) Countersignature, According to the principle of Utmost Good Faith, the insured will answer questions on the application to the best of their knowledge and pay the required premium, while the insurer will deal fairly with the insured and it's Rob recently died at age 60. An individual who removes the risk of losing money in the stock market by never purchasing stocks is said to be engaging in. If the other agreement or condition is performed, then the conditional contract is . The terms and conditions of insurance contracts should be carefully reviewed by policyholders before signing. A) Legal Julie has a $100,000 30-year mortgage on her new home. 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. A) fiduciary bond Which of the following is a reinstatement condition? C) Indemnity contract Tom's spouse Bob's estate Bob's spouse Tom, Which contract element is insurable interest a component of? 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, D) A contract where only one party makes any kind of enforceable contract. 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. B) acceptance Adhesion clause See answers. B) errors and omissions 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). One-sided or unfair insurance contracts can, however, exist if they contain provisions that disproportionately benefit one party. The power given to an individual producer that is not specifically addressed in his/her contract is considered what type of authority? Before using an assumed name in Utah, a producer MUST, Maria would like an annuity that provides a guaranteed accumulation or payout. 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) Bob's spouse A) express authority 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? The death benefit would be $250,000 $750,000 $375,000 $500,000, What does the word "level" in Level Term describe? C) A contract where one party "adheres" to the terms of the contract. Only the insured pays the premium Eventually, they retire and dissolve the business. Within how many days must a licensee notify the Commissioner of a change in address? 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 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 A contract where only one party makes any kind of enforceable contract, statements made in the application and the premium, In a life or health insurance contract, "consideration" would be the offer and acceptance premium only statements made in the application and the premium statements made in the application only, According to the principle of Utmost Good Faith, the insured will answer questions on the application to the best of their knowledge and pay the required premium, while the insurer will deal fairly with the insured and it's underwriting issuance of the policy promises made legal reserve, All of the following are elements of an insurance policy EXCEPT definitions other insurance claim forms conditions, The term which describes the fact that both parties of a contract may NOT receive the same value is referred to as Apparent Estoppel Aleatory Unilateral, Which of the following is an example of the insured's consideration? Only the insurance company has legal obligations. 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 D) A contract where only one party makes any kind of enforceable contract. C) Authority given to handle claims and process payments Which of the following BEST describes a conditional insurance contract? What is this called? Which of the following BEST describes a conditional insurance contract? Under a life insurance policy, what does the insuring clause state? b) a contract is an agreement enforceable at law. If the insured dies at any time during the 5 years, his beneficiary will receive the policy's face value. D) Business owner and business client, Under a contract of adhesion, Insurance interest does NOT occur in which of the following relationships? Log in for more information. Which of the following BEST describes a conditional insurance contract? In this situation, who will receive Bob's policy proceeds? An insurance applicant with a below-average likelihood of loss is typically considered to be a. In the case of an insurance contract, the contracting parties are the claimant and the insurer. A. Which of the following is true of the law of contracts? What does the Group Life underwriting risk selection process help protect insurance companies from? y=f(x)=10x5x+1535if0x3if3