Insurable interest can be based on the love and affection of individuals related by blood or law An applicant intentionally lying to an insurance company on an application in order to obtain a cheaper premium is an example of B) A contract that has the potential for the unequal exchange of consideration for both parties D) errors and oversights, In an insurance contract, the insurer is the only party legally obligated to perform. If threats or force is used to affect an insurance transaction, the unfair trade practice of __________ has been committed. How often must the Commissioner examine each domestic insurance company? D) collateral, Express power given to an agent in an agency agreement is Food C. Plant D. Zucchini. Returning a portion of a premium as inducement to purchase insurance, An applicant intentionally lying to an insurance company on an application in order to obtain a cheaper premium is an example of, Authority that is not specifically given to an agent in the agency contract, but that an agent can reasonably assume to carry out. 1 pt. In most cases, the insured is. a) a conditional acceptance allows the parties to negotiate the definite terms of the contract upon the completion of the contract. A) Insurability Rob recently died at age 60. written contract Which type of life insurance offers flexible premiums, a flexible death benefit, and the choice of how the cash value will be invested? Which settlement option pays a stated amount to an annuitant, but no residual value to a beneficiary? A life insurance claim which involves a per capita distribution of policy proceeds would be payable to the. D) Personal contract, The importance of a representation is demonstrated in what rule? 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? 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? B) Offer and acceptance A) Insurer's promise to pay benefits B) the unwritten authority that the agent is assumed to have C) Business partners What is this an example of? When does a life insurance policy typically become effective? A) Competent parties What Benefit Does The Payor Clause On A Juvenile Life Policy Provide? Andy the annuitant dies before the annuity start date. Expert answered| selymi |Points 23307|. Utah requires that an insurance producer must complete ___ hour(s) of continuing education on the subject of law and ethics every reporting period. Which of the following best describe the term definition. performance is conditioned upon a future occurrence. Insurance contracts are unilateral contracts. 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 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? In most insurance policies, the insurer is the only one who makes a legally binding promise to pay insured claims. B) only one party (the insurer) makes any kind of legally enforceable promise 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? Question and answer. Which of the following does a life insurance policy summary normally include? Peril Hazard Loss factor Liability, Which of these techniques will remove the risk of losing money in the stock market by never purchasing stocks? Law of large numbers U.S. Census Average mortality incidents Experience of morbidity, Insurance represents the process of risk selection avoidance transference assumption, Doctors pooling their money to cover malpractice exposures, An example of risk sharing would be Adding more security to a high-risk building Choosing not to invest in the stock market Doctors pooling their money to cover malpractice exposures Buying an insurance policy to cover potential liabilities, All of the following are examples of pure risk EXCEPT Losing money at a casino Injured while playing football Falling at a casino and breaking a hip Jewelry stolen during a home robbery, the terms must be accepted or rejected in full, Under a contract of adhesion, there is the potential for an unequal exchange of value the insurer's obligations are dependent upon certain acts of the insured individual the terms must be accepted or rejected in full only one party makes any kind of enforceable promise, According to life insurance contract law, insurable interest exists when any business relationship exists at the time of application at the time of death only when determined by a judge, In an insurance contract, the insurer is the only party legally obligated to perform. Which of the following BEST describes a conditional insurance contract? Term insurance is appropriate for someone who, Seeks temporary protection and lower premiums. Which of the following does a producer NOT have a fiduciary responsibility to? 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). Eventually, they retire and dissolve the business. ______ is NOT an element of a valid contract. be signed and witnessed by an attorney Barbaras policy includes a rider which allows her to purchase additional insurance at specific dates or events without evidence of insurability. What kind of policy is this? 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. If she dies 15 years after the policys inception date, how much will her beneficiary receive? A person who is a nonsmoker, of average weight, and in excellent health would most likely be in which risk classification? B) Bob's estate Policyowner may increase or decrease the premium payments Policyowner may increase or decrease the face amount Policyowner can contribute large sums of money Policyowner has the right to select the investment which will provide the greatest return, All of the following riders can increase the death benefit amount EXCEPT Cost of Living Waiver of Premium Accidental Death Rider Guaranteed Insurability, Which of these is NOT considered to be a common life insurance nonforfeiture option? 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? Restoring an insured to the same condition as before a loss is an example of the principle of. Zucchini is the best descriptive word. implied authority His insurance agent told him the policy would be paid up if he reached age 100. 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. Post thoughts, events, experiences, and milestones, as you travel along the path that is uniquely yours. Because you're already amazing. Producers act in a(n) ________ capacity when holding insurance premiums. weegy. What types of life insurance are normally used for key employee indemnification? If the consumer price index had gone up 4%, how much may Ron increase the face value of the policy? A) Sue the insured Waiver of premium Juvenile waiver Guaranteed insurability Payor benefit, Which of the following is a reinstatement condition? both parties consent to the contract. The power given to an individual producer that is not specifically addressed in his/her contract is considered what type of authority? Which of the following is NOT considered rebating? B) the insurer's obligations are dependent upon certain acts of the insured individual B) premium only B) at the time of application there is the potential for an unequal exchange of value Legal Have a great time ahead. D) Tom, The deeds and actions of a producer indicate what kind of authority? 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? Which of the following statements is true? His insurance agent told him the policy would be paid up if he reached age 100. Risk Hazard Indemnity Peril, Insurance companies determine risk exposure by which of the following? Both partners are still married at the time of Bob's death. Which of the following is a requirement to attain an Utah resident producer license? Which dividend option would an insurer invest the policyowners money and add any interest earnings as the dividends accrue? d. a deductible stated in the policy's provision. Connect the text to your own experiences. If thats the case, you dont have to worry anymore. Accelerated death benefit rider Waiver of premium rider Extended term option Decreasing term insurance. Law of Agency D) Only the insured is legally bound, Bob and Tom start a business. Aleatory Contract: A contract type in which the parties involved do not have to perform a particular action until a specific event occurs. Offering payment of approved claims within 30 days after affirming liability. 2003-2023 Chegg Inc. All rights reserved. b. benefits paid under workers compensation. Under the McCarran-Ferguson Act, what is the minimum penalty for this? $2,406 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 30 seconds. Consideration clause If the other agreement or condition is performed, then the conditional contract is . What is the purpose for having an accelerated death benefit on a life insurance policy? C) consideration insured 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. D) Competent parties, Which of the following BEST describes a conditional insurance contract? A symbol is a mark, sign or word that indicates, signifies, or is understood as representing an idea, object, or relationship, best describes a symbol. express authority voidable Barry offers Chris his mountain cabin for the weekend to secure his order for his insurance business. WINDOWPANE is the live-streaming app for sharing your life as it happens, without filters, editing, or anything fake. How could a company manager use a process cost summary to determine if the program to reduce water usage is successful? collateral, What is implied authority defined as? B) Offer and acceptance B) Consideration Which of these is considered to be a disadvantage of owning this type of annuity? A) One party is restored to the same financial position the party was in before the loss occurred. What does a life insurance policy guarantee to the stated beneficiary upon the death of the insured? Ron has a life insurance policy with a face value of $100,000 and a cost of living rider. How often must an insurance producers license in Utah be renewed? D) Risk insured against, A professional liability for which producers can be sued for mistakes of putting a policy into effect is called Expert answered|Malekith22|Points 0| Log in for more information. C) Aleatory B) Equal consideration is required between the involved parties apparent authority Eventually, they retire and dissolve the business. C) A contract where one party "adheres" to the terms of the contract. Which of these factors is NOT taken into account when determining an applicants life insurance needs? A) underwriting An example of an unfair claims settlement practice is, Turning down a claim without providing the basis of denial. Which of these features are held exclusively by variable universal life insurance? She would like to borrow $15,000 against the cash value. A) when any business relationship exists Accelerated death benefit An example of an unfair claims practice would be Please check below to know the answer. Nothing $100,000 $250,000 $500,000, Which type of life insurance is normally associated with a Payor Benefit rider? This is also known as a non-negotiable insurance contract, or an automatic contract. Which policy requires an agent to register with the National Association of Securities Dealers (NASD) before selling? Under the Fair Credit Reporting Act, what is the maximum penalty that may be imposed on Ken? Parent and children Events are those which cannot be controlled by either . B) Apparent 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? A) A contract that requires certain conditions or acts by the insured individual All of the following are examples of pure risk EXCEPT. unilateral, Ambiguities in an insurance policy are always resolved in favor of the She is receiving the death benefit in payments of $10,000 per month until the principal and interest has been paid out. 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) there is the potential for an unequal exchange of value C) Competent parties if the insured lives beyond the 5 years, no benefits are payable. 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? If xxx actually turns out to be 131313, what do you think of the claim? 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. 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? 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) acceptance The above question Which of the following BEST describes a conditional insurance contract?, Was part of Insurance MCQs & Answers. Which of the following policies does NOT build cash value? 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?
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