B) Apparent A contract that requires certain conditions or acts by the insured individual Which of these is considered to be a Living Benefit option in a life insurance policy? A) Only the insured pays the premium This is also known as a non-negotiable insurance contract, or an automatic contract. In the case of an insurance contract, the contracting parties are the claimant and the insurer. The death benefit would be. 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? discreet An individual who has a hobby racing cars once a month. Preferred risk policies with reduced premiums are issued by insurance companies because the insured has, Better than average mortality or morbidity experience. C) negotiation between the involved parties Conditional, Under a contract of adhesion, if the insured lives beyond the 5 years, no benefits are payable. What is the name of the provision which states that a copy of the application must be attached to the policy when issued? Administrative actions taken against a producer must be reported to the Commissioner within ____ days. B) Parent and children Which of the following are the premium payments for a universal life policy NOT used for? Which of the following statements is TRUE? Insurable interest Insurance exchanges Law of large numbers and risk pooling Population table data, People with higher loss exposure have the tendency to purchase insurance more often than those at average risk. Which of the following is a requirement to attain an Utah resident producer license? the contract must be aleatory contain an offer and acceptance, In an insurance contract, the insurer is the only party legally obligated to perform. Question and answer. C) claim forms Bob dies 12 months later. B) Period to which the coverage exists Which of the following BEST describes a conditional insurance contract Which of the following is the best descriptive word? A - Weegy The provision that allows this is called Partial Surrender Subrogation Automatic Premium Loan Accelerated Death Benefit, All of these are characteristics of a universal life insurance policy EXCEPT Flexible death benefit Fixed surrender value Flexible premiums Builds cash value, Which of the following policies does NOT build cash value? Which Of The Following Best Describes A Conditional Insurance Contract A bilateral contract is an agreement between two parties in which each side agrees to fulfill their side of the bargain. Nothing $100,000 $250,000 $500,000, Which type of life insurance is normally associated with a Payor Benefit rider? Which of the following best describe the term definition A) there must be an offer and acceptance An insurance applicant with a below-average likelihood of loss is typically considered to be a. A) Parties involved in the contract B) at the time of application Under a life insurance policy, what does the insuring clause state? C) Law of Agency B) concealment A) One party is restored to the same financial position the party was in before the loss occurred. The terms of the policy typically outline these conditions . B) implied authority After 15 years, the cash value has accumulated to $100,000 and the policy's face amount has become $600,000. Events are those which cannot be controlled by either . In this situation, who will receive Bob's policy proceeds? 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? Which of these features are held exclusively by variable universal life insurance? 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 C) fiduciary trust Elizabeth is the beneficiary of a life insurance policy. What is the advantage of adding this rider? the terms must be accepted or rejected in full 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 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. A) warranty All of the following statements about Carl's coverage are correct. The power given to an individual producer that is not specifically addressed in his/her contract is considered what type of authority? Which of these factors is NOT taken into account when determining an applicants life insurance needs? Which Of The Following Best Describes A Conditional Insurance Contract. C) Aleatory 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 Question. In order for a contract to be valid, it must. 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 Insurance Multiple-Choice Questions Flashcards Preview - Brainscape C) Implied A) producer's apparent authority renewal reinstatement resumption renovation, the MEC tends to be an investment vehicle, Pre-death distributions from a modified endowment contract (MEC) receive different tax treatment than other life insurance policies because the MEC has tax deductible premiums the MEC is considered an illegal product the MEC tends to be an investment vehicle the MEC does not accumulate cash value, The face amount and premium will remain constant over the 10-year period, Krissa purchases a 10-year level term life insurance policy that has a death benefit of $200,000. Insurance interest does NOT occur in which of the following relationships? Rob recently died at age 60. Reduction of premium One year term Paid-up additions Accumulation at interest, All of these are valid policy dividend options for a life insurance policyowner EXCEPT cash outlay to the policyowner accumulate without interest reduction in policy premium buy additional insurance coverage, Kurt is an active duty serviceman who was recently killed in an accident while home on leave. C) the terms must be accepted or rejected in full conditional 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. Expert answered| selymi |Points 23307|. Which of the following is an annuity that is linked to a market-related index? Please check below to know the answer. A) Unilateral contract Before using an assumed name in Utah, a producer MUST, Maria would like an annuity that provides a guaranteed accumulation or payout. Zucchini is the best descriptive word. 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 insured dies at any time during the 5 years, his beneficiary will receive the policy's face value. Authority given to handle claims and process payments What Benefit Does The Payor Clause On A Juvenile Life Policy Provide? C) Bob's spouse 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? Required fields are marked *. In most insurance policies, the insurer is the only one who makes a legally binding promise to pay insured claims. When does a life insurance policy typically become effective? d) an agreement requires a definite offer and an indefinite acceptance. A) when any business relationship exists 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? D) imposed authority, What makes an insurance policy a unilateral contract? 0 Answers/Comments. C) consideration C) Consideration Which of these legislation Acts is designed to protect consumers with guidelines regarding credit reporting and distribution? Which of these riders will pay a death benefit if the insureds spouse dies? Sharon is the policyowner of a $500,000 life insurance policy. Policyowner has the right to select the investment which will provide the greatest return. 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? guarantee D) underwriter, Reasonably necessary acts that an agent must perform for carrying out his/her expressly authorized duties are covered by an agent's A unilateral contract is one in which only one party makes a legally binding guarantee. producer's apparent authority unilateral, Ambiguities in an insurance policy are always resolved in favor of the If threats or force is used to affect an insurance transaction, the unfair trade practice of __________ has been committed. 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? When handling premiums for an insured, an agent is acting in which capacity? c. income earned by Pat's spouse. Which of the following is a reinstatement condition? A) insured 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. ______ is NOT an element of a valid contract. A) Express authority D) Offer and acceptance must be involved, B) Equal consideration is required between the involved parties, A contract requires Multiple-choice. B) only one party (the insurer) makes any kind of legally enforceable promise In this situation, who will receive Bob's policy proceeds? Only the insurer is legally bound A life insurance policyowner does NOT have the right to, Fixed annuities provide each of the following EXCEPT. 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. Which course of action is the insurer entitled to when deliberate concealment is committed by the insured? C) the authority to represent the insurer 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"? 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?
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