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. B) Bob's estate What kind of policy is this? A minimum of 12 months after date of purchase, Insurance premium is determined by each of the following factors EXCEPT. Have a great time ahead. Only the insurer is legally bound C) the contract has been prepared by one party (the insurance company) with no negotiation between the applicant and the insurer Sister and brother A) Authority given in writing to an agent in the agency agreement Which of these riders will pay a death benefit if the insureds spouse dies? 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? Accelerated death benefit rider Waiver of premium rider Extended term option Decreasing term insurance. 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? B) Implied authority d) an agreement requires a definite offer and an indefinite acceptance. A) fiduciary bond Which of the following is a TRUE statement? However, corporations also can raise money by selling bonds or issuing additional shares of stock. What is a corridor in relation to a Universal Life insurance policy? 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. 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. Implied 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. there must be an offer and acceptance Within how many days must a licensee notify the Commissioner of a change in address? written contract C) Bob's spouse A. Bob dies 12 months later. B) Indemnity Because of this, an insurance contract is considered Identify the type of financing (stock or bond) that best answers the question. D) Intent, Which contract element is insurable interest a component of? c. income earned by Pat's spouse. D) Consideration, What are an applicant's statements concerning occupation, hobbies, and personal health history regarded as? 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. Updated 10/6/2017 9:10:03 AM. D) Consideration clause, When the principal gives the agent authority in writing, it's referred to as Who prosecutes crimes that involve the violation of insurance laws that fall under US Code 1033? B) Apparent 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 A) offer D) conditions, The authority granted to a licensed producer is provided via the A) Sister and brother In this situation, who will receive Bob's policy proceeds? Eventually, they retire and dissolve the business. C) apparent authority Active Status Results Leave, A provision that allows a policyowner to temporarily give up ownership rights to secure a loan is called a(n) automatic premium loan nonforfeiture option collateral assignment irrevocable assignment, Period of time after the premium is due but the policy remains in force, What is an insurance policy's grace period? guarantee C) Only the insurer is legally bound Producers act in a(n) ________ capacity when holding insurance premiums. If she dies 15 years after the policys inception date, how much will her beneficiary receive? Which type of annuity guarantees a stated number of income payments, whether or not the annuitant is still alive to receive them? the insurer's obligations are dependent upon certain acts of the insured individual Insurance Exam Flashcards | Chegg.com B) Unequal consideration Insurance Cram Ch. 6 Flashcards | Chegg.com Variable life insurance and Universal life insurance are very similar. A type of group that has a constitution and bylaws and has been organized for purposes other than obtaining insurance is called a(n). C) A contract where one party "adheres" to the terms of the contract C) fiduciary trust Which of the following would be an act of Unfair Discrimination by an insurer? be in writing D) Evident authority, Which of the following is an example of the insured's consideration? Asked 10/6/2017 7:04:21 AM. All of these are typically sources of underwriting information for life or health insurance EXCEPT. (B) Both parties adhere to the contract. Lisa has recently bought a fixed annuity. His insurance agent told him the policy would be paid up if he reached age 100. Death benefits Cash value Loading costs Separate account investments, Which policy feature makes a universal life policy different from a whole life policy? Which of the following describes a person who is NOT acceptable by an insurer at standard rates because of health history, occupation, or hobbies? Are you looking for the correct answer to the question Which of the following BEST describes a conditional insurance contract?? C) Aleatory Q. acceptance 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? Term insurance is appropriate for someone who, Seeks temporary protection and lower premiums. Which of the following is an annuity that is linked to a market-related index? The terms of the policy typically outline these conditions . 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 policyowner can receive a percentage payment of the death benefits prior to death by using what kind of contract? Which Of The Following Statements About Personal Selling Is Correct? 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. express authority When does a life insurance policy typically become effective? The coverage, conditions, and limitations in the master policy of a group contract can be found in which document? Which of the following is a requirement to attain an Utah resident producer license? 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. AzAnswer team is here with the right answer to your question. 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? 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? Competent parties Offer and acceptance Consideration Legal purpose, What are an applicant's statements concerning occupation, hobbies, and personal health history regarded as? Georgia Life Insurance Exam Ch. 2 questions & answers for quizzes and conditional 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. performance is conditioned upon a future occurrence. nonparticipating life insurance policy participating life insurance policy divisible surplus life insurance policy straight life insurance policy, Which of the following is considered to be an event or condition that increases the probability of an insured's loss? Conditional Contracts: Everything You Need to Know - UpCounsel A.$1,656 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. Accelerated death benefit An example of an unfair claims practice would be A bilateral contract is an agreement between two parties in which each side agrees to fulfill their side of the bargain. B) producer Increasing Term Life policy Nonparticipating policy Modified Whole Life policy Universal Life policy, What is the automatic continuance of insurance coverage referred to as? B) Offer and acceptance Sorry, you have Javascript Disabled! Zucchini is the best descriptive word. Consideration Sharing commissions with a producer licensed in the same line of business. C) promises made 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? A) definitions The amount of his disability income payments for an on-the-job injury may be reduced by. B) Consideration Whole life policy that pays out its cash value over a 20 year period Whole life policy with premiums paid up after 20 years Term life policy that returns cash value after 20 years Term life policy with premiums paid up after 20 years, Which type of multiple protection policy pays on the death of the last person? The authority granted to a licensed producer is provided via the What is created after policy proceeds are obtained in a lump sum and then immediately invested? Cash surrender Extended term insurance Reduced paid-up insurance Life income annuity, Which type of rider will waive the premium on a child's life insurance policy if the parent paying the premium dies? 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) statements made in the application and the premium 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). Pay owns a 20-pay life policy with a paid-up dividend option. 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. Flashcards - Connecticut Insurance Test 2021 - FreezingBlue Interest on policy loans is tax deductible Premium payments are tax deductible Pre-death distributions will become taxable Cash value cannot be surrendered early, seeks temporary protection and lower premiums, Term insurance is appropriate for someone who seeks living benefits for themselves seeks a policy that builds cash value seeks temporary protection and lower premiums seeks permanent protection and higher premiums, Shirley has a $500,000 10-year non-renewable level term life policy. 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? Only the insured pays the premium A) Competent parties How many days is a temporary producers license valid? discreet apparent implied express, Bob and Tom start a business. offer Which of the following statements is TRUE? Which military service exclusion clause would pay upon his death? 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? C) the authority to represent the insurer A) there is the potential for an unequal exchange of value D) Tom, The deeds and actions of a producer indicate what kind of authority? Which of the following best describe the term definition Insurance contracts are unilateral contracts. C) Business partners 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 How often must the Commissioner examine each domestic insurance company? claim forms Insurance interest does NOT occur in which of the following relationships? 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. Vegetable B. Which dividend option would an insurer invest the policyowners money and add any interest earnings as the dividends accrue? In most cases, the insured is. Which of the following best describes a symbol. Waiver Exclusion Rider Provision, The double indemnity provision in a life insurance policy pertains to an insured's death caused by a(n) sickness suicide accident war, An insurer will accept a premium from the insured and continue the coverage in full force as though it was NOT late during which time period? What is this an example of? The policy may be paid up early by using policy dividends. B) the contract must be aleatory the terms must be accepted or rejected in full Which of the following statements correctly describes a contract of indemnity? Where would policy proceeds be paid if both the insured and primary beneficiary were killed in the same accident? Which of these is considered to be a disadvantage of owning this type of annuity? An insurance applicant with a below-average likelihood of loss is typically considered to be a. In order to maintain coverage and make a successful claim, its crucial that policyholders read and understand their insurance contract carefully. Log in for more information. be filed with the state both parties consent to the contract. aleatory C) Charge more premium Typically, bilateral contracts involve an equal obligation or. which of the following best describes a conditional insurance contract? c) a contract must be in writing. The present cash value of the policy equals $250,000. Legal purpose Policyowner has the right to select the investment which will provide the greatest return. Tom's spouse Bob's estate Bob's spouse Tom, Which contract element is insurable interest a component of? Which of these statements regarding the annuitant is CORRECT? A) there is an element of chance and potential for unequal exchange of value or consideration for both parties 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? Your email address will not be published. Flashcards - Ch. 15 - Disability Income - FreezingBlue B) Contract of adhesion A) Legal which of the following best describes a conditional insurance contract B) conditional A) Insurer's promise to pay benefits An insurer exaggerating its dividends in a magazine advertisement. 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. An individual who removes the risk of losing money in the stock market by never purchasing stocks is said to be engaging in. representation In the case of an insurance contract, the contracting parties are the claimant and the insurer. 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. The gap between the total death benefit and the policys cash value. C) adhesion A) when any business relationship exists
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