which of the following best describes a conditional insurance contract

Only the insured pays the premium Only the insured can change the provisions Only the insurer is legally bound Only the insured is legally bound, A professional liability for which producers can be sued for mistakes of putting a policy into effect is called fiduciary bond errors and omissions fiduciary trust errors and oversights, In order for a contract to be valid, it must be filed with the state be signed and witnessed by an attorney be in writing contain an offer and acceptance, 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". Loans obtained by a policyowner against the cash value of a life insurance policy. What is the meaning of par value of stock with respect to the corporate form of organization? A) insured Provide funds to help fund retirement Provide funds to help pay taxes Provide funds for funeral expenses Provide tax deductions for premium payments, lower than the typical whole life policy during the first few years and then higher than typical for the remainder, The premium for a Modified whole life policy is higher than the typical whole life policy during the first few years and then lower than typical for the remainder lower than the typical whole life policy during the first few years and then higher than typical for the remainder normally graded over a period of 20 years level for the first 5 years then decreases for the remainder of the policy, The type of policy which pays on the death of the last person is called joint life survivorship life dual life shared life, A life insurance policy that is subject to a contract interest rate is referred to as adjustable life group life term life universal life, a policy that is paid up after only one payment, A single premium cash value policy can be described as a policy that is paid up after only one payment a policy that only requires an annual payment a policy that is guaranteed issue a policy that covers two or more lives, A limited payment whole life policy provides protection for 20 years lifetime protection protection for more than one person discounted premiums, A policyowner may change two policy features on what type of life insurance? Which of the following statements is true? C) Insurance carriers B) the unwritten authority that the agent is assumed to have D) A contract where only one party makes any kind of enforceable contract, Answer:A) A contract that requires certain conditions or acts by the insured individual. Karen is a producer who has obtained personal information about a client without having a legitimate reason to do so. D) underwriter, Reasonably necessary acts that an agent must perform for carrying out his/her expressly authorized duties are covered by an agent's D. $2,863. Competent parties Offer and acceptance Consideration Legal purpose, What are an applicant's statements concerning occupation, hobbies, and personal health history regarded as? legal reserve, What are an applicant's statements concerning occupation, hobbies, and personal health history regarded as? fichoh. 2. How often must an insurance producers license in Utah be renewed? Term insurance is appropriate for someone who, Seeks temporary protection and lower premiums. 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. 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) estoppel 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? Which military service exclusion clause would pay upon his death? C) A contract where one party "adheres" to the terms of the contract AzAnswer team is here with the right answer to your question. implied authority What does the Group Life underwriting risk selection process help protect insurance companies from? A) Tom's spouse 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. What is created after policy proceeds are obtained in a lump sum and then immediately invested? 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. 0 Answers/Comments. A person who is a nonsmoker, of average weight, and in excellent health would most likely be in which risk classification? Which of the following is true of the law of contracts? B) Equal consideration is required between the involved parties 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? Proof of insurabiilty Changes in the insuring clause Premium increase Premium decrease, What is the name of the provision which states that a copy of the application must be attached to the policy when issued? A) Insurable interest B) conditional a) a conditional acceptance allows the parties to negotiate the definite terms of the contract upon the completion of the contract. C) Aleatory Principal Capacity, All of the following are elements of an insurance policy EXCEPT Completing all applications and collecting initial premiums. Which Of The Following Statements About Personal Selling Is Correct? Which of the following is an annuity that is linked to a market-related index? Under the Fair Credit Reporting Act, what is the maximum penalty that may be imposed on Ken? A paid premium After 15 years, the cash value has accumulated to $100,000 and the policy's face amount has become $600,000. Science Study Guide Questions. Under the McCarran-Ferguson Act, what is the minimum penalty for this? C) Contract must have a legal purpose Which settlement option pays a stated amount to an annuitant, but no residual value to a beneficiary? Elizabeth is the beneficiary of a life insurance policy. One-sided or unfair insurance contracts can, however, exist if they contain provisions that disproportionately benefit one party. A Modified Endowment Contract (MEC) is best described as, A life insurance contract which accumulated cash values higher than the IRS will allow, Doctors pooling their money to cover malpractice exposures, The free-look provision gives the policyowner, The right to return the policy for a full refund within a specified number of days. Orissa purchases a 10-year level term life insurance policy that has a death benefit of $200,000. 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 A) express authority Which of the following BEST describes a conditional insurance contract? Which of the following is an example of the insureds consideration? Accelerated death benefit rider Waiver of premium rider Extended term option Decreasing term insurance. A) A contract that requires certain conditions or acts by the insured individual. The policies continue in force with no change. A) fiduciary bond B) acceptance Which of the following is a requirement to attain an Utah resident producer license? An insurance applicant with a below-average likelihood of loss is typically considered to be a. D) Evident authority, Which of the following is an example of the insured's consideration? 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? Bob dies 12 months later. A) A contract that requires certain conditions or acts by the insured individual C) the terms must be accepted or rejected in full A) Parties involved in the contract A policyowner can receive a percentage payment of the death benefits prior to death by using what kind of contract? Which of these riders will pay a death benefit if the insureds spouse dies? Business partners In exchange, the policyowner pays premiums. B) A contract that has the potential for the unequal exchange of consideration for both parties C) Insurable interest 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? What kind of policy is this? Apparent Aleatory Contract: A contract type in which the parties involved do not have to perform a particular action until a specific event occurs. When the principal gives the agent authority in writing, its referred to as, The terms must be accepted or rejected in full. A) implied authority Only the insured is legally bound, 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 Multiple-choice. Which of the following best describes a symbol. The terms of the policy typically outline these conditions . Rob recently died at age 60. A) State Insurance Departments 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? contain an offer and acceptance, In an insurance contract, the insurer is the only party legally obligated to perform. 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. Vegetable B. Which of the following does a producer NOT have a fiduciary responsibility to? Which of these would NOT be an unfair claims practice? Insurance producer Jerry offers a $350 shopping card if they purchase an insurance product through him. $2,406 A life insurance policyowner does NOT have the right to, Fixed annuities provide each of the following EXCEPT. A(n) ________ investigates, negotiates, and settles claims for a few on behalf of an insurance company. A contract that requires certain conditions or acts by the insured individual, According to life insurance contract law, insurable interest exists, The term which describes the fact that both parties of a contract may NOT receive the same value is referred to 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. underwriting An individual who removes the risk of losing money in the stock market by never purchasing stocks is said to be engaging in. D) Competent parties, Which of the following BEST describes a conditional insurance contract? 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 the insured is legally bound, Bob and Tom start a business. producer The terms of the policy typically outline these conditions, which may include paying premiums on time and maintaining the insured property in good condition. B) only one party (the insurer) makes any kind of legally enforceable promise 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? D) Conditional, Which of the following is NOT a requirement of a contract? 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 If thats the case, you dont have to worry anymore. B. Connect the text to your own experiences. Which of these features are held exclusively by variable universal life insurance? A (D) Only one party is legally bound to the contract. B) A contract that has the potential for the unequal exchange of consideration for both parties Log in for more information. Notify me of follow-up comments by email. Pay owns a 20-pay life policy with a paid-up dividend option. Incontestable period Probation period Reinstatement period Grace period, The benefit can be offered as a rider at a specific extra cost or may be at no cost, Which of these is NOT a characteristic of the Accelerated Death Benefit option? The power given to an individual producer that is not specifically addressed in his/her contract is considered what type of authority? discreet apparent implied express, Bob and Tom start a business. Accelerated death benefit An example of an unfair claims practice would be C) A contract where one party adheres to the terms of the contract Sharon is the policyowner of a $500,000 life insurance policy. where is michael smith darts player from,