express, ______ is NOT an element of a valid contract. 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. Notify me of follow-up comments by email. D) Consideration clause, When the principal gives the agent authority in writing, it's referred to as The insured, on the other hand, makes few, if any, legally binding promises to the insurer. GENERAL LAW OF CONTRACTS A contract is an agreement enforceable by law. Which of the following does a producer NOT have a fiduciary responsibility to? Andy the annuitant dies before the annuity start date. Sharon is the policyowner of a $500,000 life insurance policy. B) Apparent D) Personal contract, The importance of a representation is demonstrated in what rule? His insurance agent told him the policy would be paid up if he reached age 100. Flashcards - Connecticut Insurance Test 2021 - FreezingBlue Conditional insurance contracts are insurance policies that require the insured person to satisfy certain conditions in order to become effective and/or to be paid out by the insurer. A) producer's apparent authority Which of the following BEST describes a conditional insurance contract. 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. In the case of an insurance contract, the contracting parties are the claimant and the insurer. If threats or force is used to affect an insurance transaction, the unfair trade practice of __________ has been committed. 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. All of the following are examples of pure risk EXCEPT. A contract that requires certain conditions or acts by the insured individual. Because of this, an insurance contract is considered voidable conditional aleatory unilateral, Who is responsible for assembling the policy forms for insureds? C) the terms must be accepted or rejected in full Risk reduction Risk transference Risk avoidance Risk retention, The cause of a loss is referred to as a(n) hazard adversity peril risk, How do insurers predict the increase of individual risks? 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? Which policy requires an agent to register with the National Association of Securities Dealers (NASD) before selling? D) the authority to add provisions to a contract, C) the authority to represent the insurer, Which of the following contracts is defined as "one that restores an injured party to the condition that was present before the loss"? Life & Health 1 (Chapters 1, 2, 3, & 4) Flashcards Preview - Brainscape 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. Only the insurer is legally bound Term insurance is appropriate for someone who, Seeks temporary protection and lower premiums. C) Bob's spouse 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? D) Terminate the agent, Insurable interest does NOT occur in which of the following relationships? A) there is the potential for an unequal exchange of value if the insured lives beyond the 5 years, no benefits are payable. d. a deductible stated in the policy's provision. 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) 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 Definition refers to a description which is given to a word, idea or phenomenon . Use the binomial distribution to find P(x13)P(x \leq 13)P(x13) if the stain removal product's claim is correct. Elizabeth is the beneficiary of a life insurance policy. 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? The death benefit would be. Zucchini is the best descriptive word. B. If Sharon MUST obtain Mikes signature in order to change the beneficiary, what kind of beneficiary designations is this? LIFE INSURANCE LICENSING EXAM Flashcards | Chegg.com Within how many days must a licensee notify the Commissioner of a change in address? A life insurance policy that is subject to a contract interest rate is referred to as. 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 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. Which of the following BEST describes a conditional insurance contract? which of the following best describes a conditional insurance contract A) there must be an offer and acceptance If the insured dies at any time during the 5 years, his beneficiary will receive the policy's face value. Are you looking for the correct answer to the question Which of the following BEST describes a conditional insurance contract?? B) Implied authority The automatic premium loan provision authorized an insurer to withdraw from a policys cash value the amount of, Past due premiums that have not been paid by the end of the grace period. Authority given to an agent to act outside the scope of 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, When the principal gives the agent authority in writing, it's referred to as (D) Only one party is legally bound to the contract. The most appropriate description ascribed to the meaning of definition from the options given is ; A precise statement of the qualities of an idea, object or process. AzAnswer team is here with the right answer to your question. WINDOWPANE is the live-streaming app for sharing your life as it happens, without filters, editing, or anything fake. The power given to an individual producer that is not specifically addressed in his/her contract is considered what type of authority? 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? What would happen if a life insurance applicant is given a conditional receipt? Events are those which cannot be controlled by either . Consideration clause 0 Answers/Comments. Insurer's promise to pay benefits A paid premium Legal purpose Intent, 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, What is implied authority defined as? 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? D. $2,863. 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) offer and acceptance The above question Which of the following BEST describes a conditional insurance contract?, Was part of Insurance MCQs & Answers. An example of an unfair claims practice would be, Failing to effectuate prompt, fair, and fair equitable settlements of a claim. weegy. Multiple-choice. Intent, The deeds and actions of a producer indicate what kind of authority? If the consumer price index had gone up 4%, how much may Ron increase the face value of the policy? C) Charge more premium there must be legal reasons for entering into the contract The power given to an individual producer that is not specifically addressed in his/her contract is considered what type of authority? In this situation, who will receive Bob's policy proceeds? 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 producer's apparent authority The terms of the policy typically outline these conditions . Have a great time ahead. Who is responsible for assembling the policy forms for insureds? Which of the following BEST describes a conditional insurance contract? What Benefit Does The Payor Clause On A Juvenile Life Policy Provide? A) Insurability Completing all applications and collecting initial premiums. In order for a contract to be valid, it must. 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)? B) Parent and children Vegetable B. Loan against the cash value Policy withdrawal Policy dividend Death benefit, A business will typically use which type of life insurance to cover their employees? 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 A contract that requires certain conditions or acts by the insured individual. Competent parties Offer and acceptance Consideration Legal purpose, What are an applicant's statements concerning occupation, hobbies, and personal health history regarded as? Which of the following statements is true? 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. 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? How does life insurance create an immediate estate? If she dies 15 years after the policy's inception date, how much will her beneficiary receive? Which of the following BEST describes a conditional insurance contract Before using an assumed name in Utah, a producer MUST, Maria would like an annuity that provides a guaranteed accumulation or payout. Under the Fair Credit Reporting Act, what is the maximum penalty that may be imposed on Ken? C) The insured and the insurer contribute equally to the contract. Chapter3. Legal Concepts of the Insurance Contract A life insurance policyowner does NOT have the right to, Fixed annuities provide each of the following EXCEPT. A) Parties involved must be competent C) insurer only one party makes any kind of enforceable promise, the terms must be accepted or rejected in full, 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". Eventually, they retire and dissolve the business. Restoring an insured to the same condition as before a loss is an example of the principle of. Insurance interest does NOT occur in which of the following relationships? Term, whole, and universal life insurance. 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. When initial premium is collected and policy is issued. When does a life insurance policy typically become effective? Which Of The Following Statements About Personal Selling Is Correct? D) unilateral, Who is responsible for assembling the policy forms for insureds? 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 The Following Best Describes A Conditional Insurance Contract. A.$1,656 When the term insurance expires. Where would policy proceeds be paid if both the insured and primary beneficiary were killed in the same accident? C) the authority to represent the insurer Julie has a $100,000 30-year mortgage on her new home. Producers act in a(n) ________ capacity when holding insurance premiums. 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? How could a company manager use a process cost summary to determine if the program to reduce water usage is successful? During periods of inflation, annuitants will experience a decrease in purchasing power of their payments. Both partners are still married at the time of Bob's death. Conditional, Under a contract of adhesion, A) definitions A. 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 B. Which of these features are held exclusively by variable universal life insurance? C) Authority given to handle claims and process payments Please check below to know the answer. What does a life insurance policy guarantee to the stated beneficiary upon the death of the insured? 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. See answers. Post thoughts, events, experiences, and milestones, as you travel along the path that is uniquely yours. A) Only the insured pays the premium Contestability clause, In order for a contract to be valid, it must 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) A unilateral contract is one in which only one party makes a legally binding guarantee. 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. C) Aleatory Which of these statements regarding the annuitant is CORRECT? 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 terms of the policy typically outline these conditions, which may include paying premiums on time and maintaining the insured property in good condition. Under the McCarran-Ferguson Act, what is the minimum penalty for this? Craig purchased a life insurance policy for enabling his heirs to pay estate taxes. Since each partner contributes an important element to the success of the business, they decide to take life insurance policies out on each other, and name each other as beneficiaries. If the other agreement or condition is performed, then the conditional contract is . The period of coverage The face amount The premium payments The cash value, at a predetermined date or age, regardless of the insured's health, A Renewable Term Life insurance policy can be renewed at a predetermined date or age, regardless of the insured's health only if the insured provides evidence of insurability anytime at the policyowner's request typically with no change in premium, Pre-death distributions will become taxable, Under a Modified Endowment Contract, what are the likely tax consequences? Science Study Guide Questions. Corporations, like all firms, can raise money by borrowing from banks and other lending institutions. 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? A symbol is a mark, sign or word that indicates, signifies, or is understood as representing an idea, object, or relationship, best describes a symbol.
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