which of the following best describes a conditional insurance contract

D) Conditional, Which of the following is NOT a requirement of a contract? 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? Karen is a producer who has obtained personal information about a client without having a legitimate reason to do so. B) NAIC 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. Bilateral Contract: Definition, How It Works, and Example - Investopedia A) Insurable interest underwriting AzAnswer team is here with the right answer to your question. D) Evident authority, Which of the following is an example of the insured's consideration? ______ is NOT an element of a valid contract. If Sharon MUST obtain Mikes signature in order to change the beneficiary, what kind of beneficiary designations is this? What is the purpose for having an accelerated death benefit on a life insurance policy? Which of these statements is true? Which of the following Best Describes a Conditional Insurance Contract What is the meaning of par value of stock with respect to the corporate form of organization? be in writing Multiple-choice. D) Only the insured is legally bound, Bob and Tom start a business. 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. 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 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. _______ is the authority given to a producer to transact business on behalf of the insurer. Question. imposed authority, In an insurance contract, the element that shows each party is giving something of value is called A type of group that has a constitution and bylaws and has been organized for purposes other than obtaining insurance is called a(n). 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? A minimum of 12 months after date of purchase, Insurance premium is determined by each of the following factors EXCEPT. 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. Legal purpose C) Consideration The power given to an individual producer that is not specifically addressed in his/her contract is considered what type of authority? A) Authority given in writing to an agent in the agency agreement 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? Which Of The Following Best Describes A Conditional Insurance Contract, 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. D) Personal contract, The importance of a representation is demonstrated in what rule? 2003-2023 Chegg Inc. All rights reserved. All of these are typically sources of underwriting information for life or health insurance EXCEPT. 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. The type of annuity she is seeking is called. The insured, on the other hand, makes few, if any, legally binding promises to the insurer. Which of the following would be considered an underwriting duty of an agent? Barry offers Chris his mountain cabin for the weekend to secure his order for his insurance business. Chapter 3 Legal Concepts of the Insurance Contract - Quizlet In order to maintain coverage and make a successful claim, its crucial that policyholders read and understand their insurance contract carefully. Which of the following is the best descriptive word? A - Weegy Who prosecutes crimes that involve the violation of insurance laws that fall under US Code 1033? D) imposed authority, What makes an insurance policy a unilateral contract? The authority granted to a licensed producer is provided via the Rob recently died at age 60. there must be legal reasons for entering into the contract Offering payment of approved claims within 30 days after affirming liability. 0 Answers/Comments. Bob dies 12 months later. 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. Georgia Life Insurance Exam Ch. 2 questions & answers for quizzes and Which policy requires an agent to register with the National Association of Securities Dealers (NASD) before selling? 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 What is this an example of? Conditional Contracts: Everything You Need to Know - UpCounsel In most cases, the insured is. What is the name of the provision which states that a copy of the application must be attached to the policy when issued? 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? State Insurance Departments NAIC Insurance carriers Insurance producers, Intentional withholding of material facts that would affect an insurance policy's validity is called a(n) estoppel concealment adhesion misrepresentation, The power given to an individual producer that is not specifically addressed in his/her contract is considered what type of authority? 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? 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? When the term insurance expires. Flashcards - Ch. 15 - Disability Income - FreezingBlue Which Of The Following Best Describes A Conditional Insurance Contract 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 Contestability clause, In order for a contract to be valid, it must When does a life insurance policy typically become effective? A) underwriting Q. D) Utmost good faith, What does the insurance term "indemnity" refer to? After a number of years, the policy's cash value accumulates to $50,000 and the face amount becomes $350,000. A) insured B) Rescind the policy Rob purchased a standard whole life policy with a $500,000 death benefit when we was age 30. Competent parties Offer and acceptance Consideration Legal purpose, What are an applicant's statements concerning occupation, hobbies, and personal health history regarded as? If she dies 15 years after the policys inception date, how much will her beneficiary receive? C) Indemnity contract 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 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? 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"? A) there is an element of chance and potential for unequal exchange of value or consideration for both parties How does life insurance create an immediate estate? One-sided or unfair insurance contracts can, however, exist if they contain provisions that disproportionately benefit one party. insured C) Contract must have a legal purpose The coverage, conditions, and limitations in the master policy of a group contract can be found in which document? A contract that requires certain conditions or acts by the insured individual. Loans obtained by a policyowner against the cash value of a life insurance policy. Consideration clause voidable Which of the following BEST describes a conditional insurance contract? Which of the following best describes a symbol. Required fields are marked *. A) implied authority Of the following dividend options, which of these is taxable? Which of these statements is true? 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 there must be an offer and acceptance D) Terminate the agent, Insurable interest does NOT occur in which of the following relationships? 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? Connect with others, with spontaneous photos and videos, and random live-streaming. Chapter 3: Legal Concepts Flashcards | Quizlet A) when any business relationship exists __________. Because of this, an insurance contract is considered voidable conditional aleatory unilateral, Who is responsible for assembling the policy forms for insureds? Which statement is CORRECT when describing a contract of adhesion? C) Legal purpose B) premium only 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). Consideration The face amount and premium will remain constant over the 10-year period. In order to maintain coverage and make a successful claim, its crucial that policyholders read and understand their insurance contract carefully. C) Bob's spouse D) misrepresentation, Which of the following is NOT required in the content of a policy? B) Offer and acceptance It is a nonprofit organization that maintains underwriting information on applicants for life and health insurance. What are an applicants statements concerning occupation, hobbies, and personal health history regarded as? which of the following best describes a conditional insurance contract 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. If xxx actually turns out to be 131313, what do you think of the claim? After first premium is paid, the face amount may be available to the beneficiary, Level premium term life insurance policies, Have premiums that are averaged over the policy period, A policyowner can receive an immediate payment before the insured dies by using a(n), Matt is applying for life insurance and requests a double indemnity rider. In the case of an insurance contract, the contracting parties are the claimant and the insurer. C) insurer D) Consideration, What are an applicant's statements concerning occupation, hobbies, and personal health history regarded as? It is not necessary for the parties to exchange unequal consideration in a conditional insurance contract. A) Insurer's promise to pay benefits 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)? Chapter3. Legal Concepts of the Insurance Contract written contract A) Contract may be accepted or rejected by the insured, 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. 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 marathon is 42.2 kilometers. 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 issuance of the policy The present cash value of the policy equals $250,000. Asked 10/6/2017 7:04:21 AM. Which of the following is a requirement to attain an Utah resident producer license? Which of the following BEST describes a conditional insurance contract? A double indemnity benefit will be payable to Matts beneficiary is Matt, All of the following riders can increase the death benefit amount EXCEPT, All of these are valid policy dividend options for a life insurance policyowner EXCEPT, The premium for a Modified whole life policy is, Lower than the typical whole life policy during the first few years and then higher than typical for the remainder, A nonparticipating company is sometimes called a(n), Intentional withholding of material facts that would affect an insurance policys validity is called a(n), Signatures for an insurance application MUST be obtained by the producer from all of the following sources EXCEPT. Identify the type of financing (stock or bond) that best answers the question. 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. His insurance agent told him the policy would be paid up if he reached age 100. 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? b. benefits paid under workers compensation. (B) Both parties adhere to the contract. 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? C) consideration 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. 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? B) only one party (the insurer) makes any kind of legally enforceable promise A) producer's apparent authority Where would policy proceeds be paid if both the insured and primary beneficiary were killed in the same accident? Which of the following describes a person who is NOT acceptable by an insurer at standard rates because of health history, occupation, or hobbies? 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 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. 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". See answers. Dorian exercises a nonforfeiture option by using his life policys cash value to purchase an extended term insurance option. Who assumes the investment risk with a fixed annuity contract? $1,000 $3,000 $5,000 $7,000, A nonparticipating company is sometimes called a(n) alien insurer mutual insurer reinsurer stock insurer, Because dividends are considered to be a return of premium, Why are dividends from a mutual insurer not subject to taxation? D) conditions, The authority granted to a licensed producer is provided via the Describe the structure. The amount of his disability income payments for an on-the-job injury may be reduced by. Which of the following does a life insurance policy summary normally include? 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. 1 pt. C) there must be legal reasons for entering into the contract Bob dies 12 months later. 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? Risk Hazard Indemnity Peril, Insurance companies determine risk exposure by which of the following? Question and answer. C) Apparent authority Under the McCarran-Ferguson Act, what is the minimum penalty for this? Please check below to know the answer. 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? B) written contract aleatory Chapter 1 - Completing the application, underwriting, and - Chegg Both partners are still married at the time of Bob's death. Dependent term Guaranteed insurability Primary term Family term, Which type of life insurance offers flexible premiums, a flexible death benefit, and the choice of how the cash value will be invested? A paid premium Which of the following BEST describes a conditional insurance contract 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) Authority given to handle claims and process payments A life insurance policy that is subject to a contract interest rate is referred to as. Premium clause The policy may be paid up early by using policy dividends. 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? representation An insurer's claim settlement practices are regulated by the Securities and Exchange Commission (SEC) National Association of Claims Adjusters (NACA) National Association of Insurance Commissioners (NAIC) State insurance departments, A life insurance company has transferred some of its risk to another insurer. This legal agreement requires prior performance of another agreement or clause in order to be enforceable. Provide an opinion. legal reserve, What are an applicant's statements concerning occupation, hobbies, and personal health history regarded as? Which option was chosen? Key elements of Organizational Behavior - People, Structure ,Technology & External Environment | Organizational Behavior, Penology - Meaning, Types, Importance, Scope and Example | Sociology, Karmachari Sanchaya Kosh - | Employees Provident Fund Nepal, Perceptual Errors -Types of Perceptual Error | Fundamentals of Organizational Behaviour, Difference between Manufacturing and Service Operations | Operation Management. Because of this, an insurance contract is considered What type of life insurance could she purchase that is designed to pay off the loan balance if she dies within the 30-year period? 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 This rider is called a(n). Which type of life insurance policy is this? A) there is the potential for an unequal exchange of value Both partners are still married at the time of Bob's death. 2003-2023 Chegg Inc. All rights reserved. If the other agreement or condition is performed, then the conditional contract is . C) A contract where one party adheres to the terms of the contract She would like to borrow $15,000 against the cash value. 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 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? Which course of action is the insurer entitled to when deliberate concealment is committed by the insured? 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. Which type of annuity guarantees a stated number of income payments, whether or not the annuitant is still alive to receive them? A) Express authority Countersignature, Which of the following is an example of the insured's consideration? C) Competent parties Which Of The Following Best Describes A Conditional Insurance Contract

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