B. C) A contract where one party adheres to the terms of the contract the contract is voidable upon proof of fraud. Which dividend option would an insurer invest the policyowners money and add any interest earnings as the dividends accrue? express, ______ is NOT an element of a valid contract. A) offer which of the following best describes a conditional insurance contract? Countersignature, Which of the following is an example of the insured's consideration? Which of these legislation Acts is designed to protect consumers with guidelines regarding credit reporting and distribution? It allows for a spouse to be added as a rider to a life insurance policy It allows for policy loans to be advanced to the insured in the event of unemployment It allows for cash advances to be paid against the death benefit if the insured becomes terminally ill It allows for a third party to purchase a life insurance policy at a discounted rate and immediately advance a portion of the death benefit, All of these are standard exclusions found in a life insurance policy EXCEPT hazardous occupations aviation disability war, Which dividend option would an insurer invest the policyowner's money and add any interest earnings as the dividends accrue? A contract that requires certain conditions or acts by the insured individual. if the insured lives beyond the 5 years, no benefits are payable. issuance of the policy A type of group that has a constitution and bylaws and has been organized for purposes other than obtaining insurance is called a(n). D) Consideration, What are an applicant's statements concerning occupation, hobbies, and personal health history regarded as? Provide death benefits Provide money for retirement Provide living benefits Provide money for college, The Do Not Call Registry offers exemptions for calls placed from all of the following EXCEPT charities political organizations insurance sales calls surveys, protect consumers with guidelines regarding credit reporting and distribution, The Fair Credit and Reporting Act's main purpose is to assist in the underwriting of insurance policies protect insurers from an applicant's misrepresentation protect consumers with guidelines regarding credit reporting and distribution assist an insurer in determining an applicant's creditworthiness, What kind of life insurance policy issued by a mutual insurer provides a return of divisible surplus? The face amount and policy premium are not affected by the payment Before payment of the benefit is made, specific conditions must exist, such as suffering from a terminal illness There may be a dollar limit on the maximum benefit The benefit can be offered as a rider at a specific extra cost or may be at no cost, Which of the following is NOT part of an insurance contract? B) other insurance Which of these is considered to be a Living Benefit option in a life insurance policy? Peril Hazard Loss factor Liability, Which of these techniques will remove the risk of losing money in the stock market by never purchasing stocks? Who is responsible for assembling the policy forms for insureds? This legal agreement requires prior performance of another agreement or clause in order to be enforceable. Only the insurance company has legal obligations. 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 How soon can the benefit payments begin with a deferred annuity? Vegetable B. Net death benefit will be reduced if the loan is not repaid No interest will be charged on loan balance Term life policies are the only type of insurance that allows policy loans A loan can be taken out for up to the face amount of the policy, Ownership of a life insurance policy may be temporarily transferred with a(n) collateral assignment absolute assignment transferable assignment beneficiary assignment, provide evidence of insurability to the insurer, In order to activate the reinstatement clause of a lapsed life insurance policy, the insured MUST remit all past-due premiums within the grace period provide evidence of insurability to the insurer resubmit a new life insurance application provide a valid reason for the lapse, Which of the following is considered to be an alternative to a life settlement? Asked 10/6/2017 7:04:21 AM. Food C. Plant D. Zucchini. D) Evident authority, Which of the following is an example of the insured's consideration? C) Probability of loss Policyowner has the right to select the investment which will provide the greatest return. LIFE INSURANCE LICENSING EXAM Flashcards | Chegg.com 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? Expert answered| selymi |Points 23307|. 0 Answers/Comments. During periods of inflation, annuitants will experience a decrease in purchasing power of their payments. When does a life insurance policy typically become effective? Science Study Guide Questions. A) Competent parties If threats or force is used to affect an insurance transaction, the unfair trade practice of __________ has been committed. C) Apparent authority The power given to an individual producer that is not specifically addressed in his/her contract is considered what type of authority? they are "take it or leave it" contracts. A) Sue the insured Which of the following statements is true? Which of the following is NOT considered rebating? If she dies 15 years after the policy's inception date, how much will her beneficiary receive? C) Competent parties 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 Which Of The Following Best Describes A Conditional Insurance Contract 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? Dorian exercises a nonforfeiture option by using his life policys cash value to purchase an extended term insurance option. 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? Chapter 3 Legal Concepts of the Insurance Contract - Quizlet Aleatory Contract: A contract type in which the parties involved do not have to perform a particular action until a specific event occurs. 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 Both partners are still married at the time of Bob's death. What types of life insurance are normally used for key employee indemnification? Nothing $100,000 $250,000 $500,000, Which type of life insurance is normally associated with a Payor Benefit rider? It is not necessary for the parties to exchange unequal consideration in a conditional insurance contract. A (D) Only one party is legally bound to the contract. Flashcards - Connecticut Insurance Test 2021 - FreezingBlue B) 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 Under the McCarran-Ferguson Act, what is the minimum penalty for this? Lisa has recently bought a fixed annuity. Chapter 1 - Completing the application, underwriting, and - Chegg The terms and conditions of insurance contracts should be carefully reviewed by policyholders before signing. 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) Both parties to the contract are bound to the terms. The insured, on the other hand, makes few, if any, legally binding promises to the insurer. A) voidable D) legal reserve, In an insurance contract, the element that shows each party is giving something of value is called Who prosecutes crimes that involve the violation of insurance laws that fall under US Code 1033? Field underwriting performed by the producer involves, Completing the application and collecting initial premium, An employee under a group insurance policy has the right to name a beneficiary and the right to, Convert to an individual policy in the event of employment termination. Pay owns a 20-pay life policy with a paid-up dividend option. Which of the following statements about aleatory contracts is NOT true? 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". B) Parent and children 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. D) Tom, The deeds and actions of a producer indicate what kind of authority? 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. An insurance applicant with a below-average likelihood of loss is typically considered to be a. A) Sister and brother D) Business owner and business client, Under a contract of adhesion, 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? A) producer's apparent authority Which statement is CORRECT when describing a contract of adhesion? A) the appearance of authority an insurer gives to its agent Which of the following statements is true? The policies continue in force with no change. In the case of an insurance contract, the contracting parties are the claimant and the insurer. 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? Which market index is normally associated with an indexed annuitys rate of return? B) Contract of adhesion 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. Authority given in writing to an agent in the agency agreement 2003-2023 Chegg Inc. All rights reserved. b. benefits paid under workers compensation. D) Utmost good faith, What does the insurance term "indemnity" refer to? both parties consent to the contract. How often must an insurance producers license in Utah be renewed? conditional The coverage, conditions, and limitations in the master policy of a group contract can be found in which document? Which of the following is an example of the insureds consideration? be signed and witnessed by an attorney B) guarantee which of the following best describes a conditional insurance contract 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. Only the insured can change the provisions (B) Both parties adhere to the contract. If xxx actually turns out to be 131313, what do you think of the claim? This rider is called a(n). An example of an unfair claims settlement practice is, Turning down a claim without providing the basis of denial. there must be legal reasons for entering into the contract Bob dies 12 months later. A) Legal C) Law of Agency Connect with others, with spontaneous photos and videos, and random live-streaming. C) Legal purpose A) offer and acceptance His insurance agent told him the policy would be paid up if he reached age 100. (C) Both parties exchange goods of equal value. D) Personal contract, The importance of a representation is demonstrated in what rule? 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? When the principal gives the agent authority in writing, its referred to as, The terms must be accepted or rejected in full. (D) Only one party is legally bound to the contract. What kind of policy is this? 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 policyowner can receive a percentage payment of the death benefits prior to death by using what kind of contract? 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. 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? Insurance Quiz (MCQs) Archives - Management Notes A new stain removal product claims to completely remove the stains on 909090 percent of all stained garments. 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 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? Because of this, an insurance contract is considered Which of the following does a producer NOT have a fiduciary responsibility to? 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. which of the following best describes a conditional insurance contract? 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". All of the following are examples of pure risk EXCEPT. What is the purpose for having an accelerated death benefit on a life insurance policy? 30 seconds. Question. Log in for more information. A) Express Which of the following BEST describes a conditional insurance contract 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? A) when any business relationship exists An individual who has a hobby racing cars once a month. Which of these would NOT be an unfair claims practice? A) State Insurance Departments Accelerated death benefit An example of an unfair claims practice would be 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? A) Only the insured pays the premium 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? y=f(x)=10x5x+1535if0x3if3
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