What guarantees that the statements supplied by an insurance applicant are true? 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. $0 $5,000 $10,000 $15,000, Determine financial strength of an insurance company, What is the primary purpose of a rating service company such as A.M Best? Insurance contracts are unilateral contracts. Which of the following would be a valid reason why a policy premium would be higher than the standard premium? An unintentional violation of Utah insurance law could lead a producer to a fine of up to _____ per violation. Which market index is normally associated with an indexed annuitys rate of return? What kind of policy is this? This is called risk retention preexisting conditions law of large numbers adverse selection, What is known as the immediate specific event causing loss and giving rise to risk? guarantee D) Terminate the agent, Insurable interest does NOT occur in which of the following relationships? Consideration Sister and brother Aleatory Contract: A contract type in which the parties involved do not have to perform a particular action until a specific event occurs. 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. conditions, Legal purpose is a term used in contract law meaning Which Of The Following Statements About Personal Selling Is Correct? Your email address will not be published. C) statements made in the application and the premium D) collateral, Express power given to an agent in an agency agreement is which of the following best describes a conditional insurance contract? Apparent The above question Which of the following BEST describes a conditional insurance contract?, Was part of Insurance MCQs & Answers. producer Waiver of premium Juvenile waiver Guaranteed insurability Payor benefit, Which of the following is a reinstatement condition? A) One party is restored to the same financial position the party was in before the loss occurred. If thats the case, you dont have to worry anymore. Updated 10/6/2017 9:10:03 AM. Only the insured can change the provisions (C) Both parties exchange goods of equal value. Zucchini is the best descriptive word. 0 Answers/Comments. 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 Answer Explanation: A contract that requires certain conditions or acts by the insured individual. 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). (D) Only one party is legally bound to the contract. Insurance producer Jerry offers a $350 shopping card if they purchase an insurance product through him. Use the binomial distribution to find P(x13)P(x \leq 13)P(x13) if the stain removal product's claim is correct. express authority D) unilateral, Who is responsible for assembling the policy forms for insureds? 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 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? weegy. Vegetable B. The policies continue in force with no change. Both partners are still married at the time of Bob's death. 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 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? Which of the following is an example of the insureds consideration? Which type of annuity guarantees a stated number of income payments, whether or not the annuitant is still alive to receive them? Eventually, they retire and dissolve the business. offer C) Indemnity contract Which military service exclusion clause would pay upon his death? Which of the following is a TRUE statement? After being properly appointed by the insurer. A) offer and acceptance Modified Whole Life Decreasing Term Life Adjustable Life Whole Life, Decreasing term life insurance is often used to provide retirement funds provide coverage for a home mortgage accumulate cash value provide coverage for estate taxes, Which of these is NOT subject to income taxation under a Modified Endowment Contract (MEC)? Write a summary of the main ideas. collateral, What is implied authority defined as? A) Competent parties 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) Only the insured is legally bound, Bob and Tom start a business. insurer voidable 2003-2023 Chegg Inc. All rights reserved. Required fields are marked *. Bob dies 12 months later. Typically, bilateral contracts involve an equal obligation or. Which of the following does a life insurance policy summary normally include? Parent and children 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 these statements is true? A) underwriting D. $2,863. discreet apparent implied express, Bob and Tom start a business. Within how many days must a licensee notify the Commissioner of a change in address? D) misrepresentation, Which of the following is NOT required in the content of a policy? Because insurance premiums are tax-deductible Because dividends are already subject to capital gains Because dividends are payable directly to the policyholder Because dividends are considered to be a return of premium, A type of insurer that is owned by its policyowners is called domestic mutual stock in-house, What is considered to be the primary reason for buying life insurance? A) when any business relationship exists The insurer assuming the risk is called the mutual insurer reinsurer reciprocal insurer participating insurer, Karen is a producer who has obtained personal information about a client without having a legitimate reason to do so. Which of these statements is true? 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. If the consumer price index had gone up 4%, how much may Ron increase the face value of the policy? WINDOWPANE is the live-streaming app for sharing your life as it happens, without filters, editing, or anything fake. B) concealment An example of an unfair claims settlement practice is, Turning down a claim without providing the basis of denial. 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. In this situation, who will receive Bob's policy proceeds? D) Tom, The deeds and actions of a producer indicate what kind of authority? fichoh. A conditional contract, also called a hypothetical contract, is a contract agreement that only requires performance once the delineated conditions are met. Under a life insurance policy, what does the insuring clause state? C) Authority given to handle claims and process payments Asked 10/6/2017 7:04:21 AM. A) fiduciary bond 2 See answers Which of the following is true of the law of contracts? C) fiduciary trust 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 Authority given in writing to an agent in the agency agreement Which type of life insurance offers flexible premiums, a flexible death benefit, and the choice of how the cash value will be invested? Barbaras policy includes a rider which allows her to purchase additional insurance at specific dates or events without evidence of insurability. B) errors and omissions Adjustable life Credit life Modified life Universal life, Whole life policy with premiums paid up after 20 years, Which of these would be the best example of a limited pay life insurance policy? Policyowner may increase or decrease the premium payments Policyowner may increase or decrease the face amount Policyowner can contribute large sums of money Policyowner has the right to select the investment which will provide the greatest return, All of the following riders can increase the death benefit amount EXCEPT Cost of Living Waiver of Premium Accidental Death Rider Guaranteed Insurability, Which of these is NOT considered to be a common life insurance nonforfeiture option? A. Administrative actions taken against a producer must be reported to the Commissioner within ____ days. What are an applicants statements concerning occupation, hobbies, and personal health history regarded as? C) Bob's spouse It is a government agency that collects medical information on the insured from the insurance companies C. It is a member organization that protects against insolvent insurers D. B) producer Which course of action is the insurer entitled to when deliberate concealment is committed by the insured? 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. When handling premiums for an insured, an agent is acting in which capacity? C) A contract where one party adheres to the terms of the contract Restoring an insured to the same condition as before a loss is an example of the principle of. In order to maintain coverage and make a successful claim, its crucial that policyholders read and understand their insurance contract carefully. Which contract element is insurable interest a component of? Question. C) Insurable interest there must be an offer and acceptance 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? be in writing A(n) ________ investigates, negotiates, and settles claims for a few on behalf of an insurance company. Which of the following policies does NOT build cash value? 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"? 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. What is this called? 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. A) Insurer's promise to pay benefits C) Apparent authority B. A) there is an element of chance and potential for unequal exchange of value or consideration for both parties Who assumes the investment risk with a fixed annuity contract? 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?
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