implied authority What kind of policy is this? Eventually, they retire and dissolve the business. I hope you got the correct answer to your question. C) there must be legal reasons for entering into the contract Insurance Exam Flashcards | Chegg.com A unilateral contract is one in which only one party makes a legally binding guarantee. How often must the Commissioner examine each domestic insurance company? __________. Updated 10/6/2017 9:10:03 AM. D) collateral, Express power given to an agent in an agency agreement is C) aleatory C) promises made Conditional, Under a contract of adhesion, D) legal reserve, In an insurance contract, the element that shows each party is giving something of value is called Waiver Exclusion Rider Provision, The double indemnity provision in a life insurance policy pertains to an insured's death caused by a(n) sickness suicide accident war, An insurer will accept a premium from the insured and continue the coverage in full force as though it was NOT late during which time period? C) Materiality of concealment Bob dies 12 months later. D) A contract where only one party makes any kind of enforceable contract, A) A contract that requires certain conditions or acts by the insured individual, All of the following are elements of an insurance policy EXCEPT 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? A) there is the potential for an unequal exchange of value b) a contract is an agreement enforceable at law. During periods of inflation, annuitants will experience a decrease in purchasing power of their payments. Peril Hazard Loss factor Liability, Which of these techniques will remove the risk of losing money in the stock market by never purchasing stocks? D) underwriter, Reasonably necessary acts that an agent must perform for carrying out his/her expressly authorized duties are covered by an agent's Plot this function and determine if she is ready to attempt the Bluenose Marathon. Which of the following best describe the term definition. Rob recently died at age 60. When the principal gives the agent authority in writing, its referred to as, The terms must be accepted or rejected in full. Within how many days must a licensee notify the Commissioner of a change in address? Chapter 1 - Completing the application, underwriting, and - Chegg Producers act in a(n) ________ capacity when holding insurance premiums. Insurance contracts are unilateral contracts. A. Which of the following BEST describes a conditional insurance 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? 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. A contract that requires certain conditions or acts by the insured individual. Countersignature, Which of the following is an example of the insured's consideration? 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. 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. B) Offer and acceptance 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. 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. discreet apparent implied express, Bob and Tom start a business. B) Only the insured can change the provisions Q. B) only an offer D) Insurance producers, If a material warranty violation on the part of the insured is found, what recourse does an insurer have? Insurers must maintain files of all documents used for solicitation for ____ year(s) after the last authorizes date of use. After a number of years, the policy's cash value accumulates to $50,000 and the face amount becomes $350,000. written contract the insurer's obligations are dependent upon certain acts of the insured individual Rob recently died at age 60. What was his total bill? 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? His insurance agent told him the policy would be paid up if he reached age 100. Rob purchased a standard whole life policy with a $500,000 death benefit when we was age 30. Answer Explanation: A contract that requires certain conditions or acts by the insured individual. Orissa purchases a 10-year level term life insurance policy that has a death benefit of $200,000. Provide an opinion. If thats the case, you dont have to worry anymore. 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) Offer and acceptance there is the potential for an unequal exchange of value Who prosecutes crimes that involve the violation of insurance laws that fall under US Code 1033? All of the following are considered appropriate uses if life insurance for business purposes EXCEPT, Protecting the business by covering entry level employees with life insurance, Level premium permanent insurance accumulates a reserve that will eventually. C) statements made in the application and the premium C) A contract where one party "adheres" to the terms of the contract. Question. B) the insurer's obligations are dependent upon certain acts of the insured individual Bilateral Contract: Definition, How It Works, and Example - Investopedia Events are those which cannot be controlled by either . Have a great time ahead. AzAnswer team is here with the right answer to your question. A) when any business relationship exists Insurance Multiple-Choice Questions Flashcards Preview - Brainscape 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? Required fields are marked *. D) errors and oversights, In an insurance contract, the insurer is the only party legally obligated to perform. the policy provides a straight, level $100,000 of coverage for 5 years. D) Legal Purpose, Which of the following is present when an applicant stands to lose value if the insured dies? Which of the following Best Describes a Conditional Insurance Contract Term, whole, and universal life insurance. Which type of annuity guarantees a stated number of income payments, whether or not the annuitant is still alive to receive them? If xxx actually turns out to be 131313, what do you think of the claim? A) producer's apparent authority C) Insurance carriers Which of the following would be considered an underwriting duty of an agent? Chapter3. Legal Concepts of the Insurance Contract In this situation, who will receive Bob's policy proceeds? Which of the following BEST describes a conditional insurance contract? Which of the following BEST describes a conditional insurance contract? The death benefit would be. Which of the following BEST describes a conditional insurance contract 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? What are an applicants statements concerning occupation, hobbies, and personal health history regarded as? The coverage, conditions, and limitations in the master policy of a group contract can be found in which document? D) the contract must be a contract of adhesion, C) there must be legal reasons for entering into the contract, Ambiguities in an insurance policy are always resolved in favor of the Free Flashcards about Stack #2476860 - StudyStack issuance of the policy A(n) ________ investigates, negotiates, and settles claims for a few on behalf of an insurance company. Under the McCarran-Ferguson Act, what is the minimum penalty for this? D) Utmost good faith, What does the insurance term "indemnity" refer to? Of the following dividend options, which of these is taxable? 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) Make whole How many days is a temporary producers license valid? If she dies 15 years after the policy's inception date, how much will her beneficiary receive? The face amount and premium will remain constant over the 10-year period. 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? Bob dies 12 months later. A bilateral contract is an agreement between two parties in which each side agrees to fulfill their side of the bargain. All of the following are examples of a Business Continuation Plan EXCEPT. discreet A) express authority The amount of his disability income payments for an on-the-job injury may be reduced by. A) warranty B) premium only C) The insured and the insurer contribute equally to the contract. (D) Only one party is legally bound to the contract. C) A contract where one party adheres to the terms of the contract contain an offer and acceptance, In an insurance contract, the insurer is the only party legally obligated to perform. C) Aleatory Consideration clause What is this an example of? 2003-2023 Chegg Inc. All rights reserved. Restoring an insured to the same condition as before a loss is an example of the principle of. D) Personal contract, The importance of a representation is demonstrated in what rule? How do marketers use insights regarding the self-concept? In the case of an insurance contract, the contracting parties are the claimant and the insurer. The gap between the total death benefit and the policy's cash value The gap between when a claim is filed and when the death benefit is received The amount of interest that has accumulated in the policy's cash value The point in time when the policy's cash value reaches $0, Rob purchased a standard whole life policy with a $500,000 death benefit when he was age 30. 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. 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". other insurance Which of the following best defines diction? A. simile B - Weegy 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. Which of the following best describes how you analyze a fiction text What kind of policy is this? A Dalhousie University student training for distance running finds that, after running for x hours, her distance traveled, in kilometers, is given by, y=f(x)={10xif0x35x+15if3 Adjustable life policy Modified life policy Endowment policy Universal life policy, How are survivorship life insurance policies helpful in estate planning? 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 D) the authority to add provisions to a contract, C) the authority to represent the insurer, Which of the following contracts is defined as "one that restores an injured party to the condition that was present before the loss"? 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. D) conditions, The authority granted to a licensed producer is provided via the B) Unequal consideration Express Apparent Implied Conditional, The type of multiple protection coverage that pays on the death of the last person is called a(n) joint life policy survivorship life policy annuity joint policy dual life policy, A nonforfeiture option can be used to increase the death benefit, All of these are valid options for an Adjustable Life Policy EXCEPT The policy's premium can be increased or decreased The policy's death benefit can be increased or decreased A nonforfeiture option can be used to increase the death benefit The policy's protection period can be modified, A life insurance contract which accumulates cash values higher than the IRS will allow, 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 prior to age 65 are subject to a 10% penalty, An interest-sensitive life insurance policyowner may be able to withdraw the policy's cash value interest free. Ken is a producer who has obtained Consumer Informations Reports under false pretenses. What is the meaning of par value of stock with respect to the corporate form of organization? express, ______ is NOT an element of a valid contract. 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. One-sided or unfair insurance contracts can, however, exist if they contain provisions that disproportionately benefit one party. Which contract element is insurable interest a component of? Term insurance is appropriate for someone who, Seeks temporary protection and lower premiums. A) Competent parties The terms of the policy typically outline these conditions, which may include paying premiums on time and maintaining the insured property in good condition.
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