which of the following best describes a conditional insurance contract

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? Which of these features are held exclusively by variable universal life insurance? Write a summary of the main ideas. Log in for more information. Utah requires that an insurance producer must complete ___ hour(s) of continuing education on the subject of law and ethics every reporting period. When does a life insurance policy typically become effective? B) the unwritten authority that the agent is assumed to have D) Intent, Which contract element is insurable interest a component of? C) at the time of death claim forms d. a deductible stated in the policy's provision. If the consumer price index had gone up 4%, how much may Ron increase the face value of the policy? One-sided or unfair insurance contracts can, however, exist if they contain provisions that disproportionately benefit one party. B) A contract that has the potential for the unequal exchange of consideration for both parties To see this page as it is meant to appear, please enable your Javascript! The annuitants life expectancy determines the annuity payments, No one may be denied coverage by an insurance company due to, A life insurance rider that allows an individual to purchase insurance as they grow older, regardless of insurability, is called a(n). A) producer's apparent authority Which of the following statements correctly describes a contract of indemnity? B) Apparent All of these are typically sources of underwriting information for life or health insurance EXCEPT. The amount of his disability income payments for an on-the-job injury may be reduced by. This is also known as a non-negotiable insurance contract, or an automatic contract. Shirley has a $500,000 10-year-non-renewable level term life policy. Accelerated death benefit An example of an unfair claims practice would be A. C) insurer In this situation, who will receive Bob's policy proceeds? (A) Both parties to the contract are bound to the terms. purpose, Insurable interest does NOT occur in which of the following relationships? C) Only the insurer is legally bound 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? A unilateral contract is one in which only one party makes a legally binding guarantee. Loans obtained by a policyowner against the cash value of a life insurance policy. only one party makes any kind of enforceable promise, the terms must be accepted or rejected in full, 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". 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 C) Implied 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? 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. Multiple-choice. Only the insured can change the provisions The insured, on the other hand, makes few, if any, legally binding promises to the insurer. When initial premium is collected and policy is issued. The type of annuity she is seeking is called. Which of the following statements is true? A) there must be an offer and acceptance imposed authority, In an insurance contract, the element that shows each party is giving something of value is called A non-contributory health insurance plan helps the insurer avoid. The terms of the policy typically outline these conditions . In most cases, the insured is. Question. promises made Insurance interest does NOT occur in which of the following relationships? Asked 10/6/2017 7:04:21 AM. unilateral, Ambiguities in an insurance policy are always resolved in favor of the aleatory A conditional contract, also called a hypothetical contract, is a contract agreement that only requires performance once the delineated conditions are met. The power given to an individual producer that is not specifically addressed in his/her contract is considered what type of authority? 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? A) Competent parties Which type of life insurance offers flexible premiums, a flexible death benefit, and the choice of how the cash value will be invested? A contract that requires certain conditions or acts by the insured individual. 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? Which of the following does a producer NOT have a fiduciary responsibility to? Which of these features are held exclusively by variable universal life insurance? Which option was chosen? B. What kind of policy is this? It is not necessary for the parties to exchange unequal consideration in a conditional insurance contract. both parties consent to the contract. What does a life insurance policy guarantee to the stated beneficiary upon the death of the insured? C) A contract where one party "adheres" to the terms of the contract 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. representation be in writing D) Tom, The deeds and actions of a producer indicate what kind of authority? Which of the following statements about aleatory contracts is NOT true? B) Consideration Premium clause A) Only the insured pays the premium A) State Insurance Departments B) only one party (the insurer) makes any kind of legally enforceable promise D) Utmost good faith, What does the insurance term "indemnity" refer to? Corporations, like all firms, can raise money by borrowing from banks and other lending institutions. With a life insurance contract, the insurer binds itself to pay a certain sum upon the death of the insured. 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? B) other insurance 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)? A) A contract that requires certain conditions or acts by the insured individual Waiver of premium Juvenile waiver Guaranteed insurability Payor benefit, Which of the following is a reinstatement condition? Karen is a producer who has obtained personal information about a client without having a legitimate reason to do so. AzAnswer team is here with the right answer to your question. C) Indemnity contract Rob recently died at age 60. A) offer and acceptance How often must the Commissioner examine each domestic insurance company? 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. 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. Which of the following is a reinstatement condition? D) both the policyowner and the insurer must know all material facts and relevant information, B) only one party (the insurer) makes any kind of legally enforceable promise, Intentional withholding of material facts that would affect an insurance policy's validity is called a(n) 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? D) Only the insured is legally bound, Bob and Tom start a business. C) Aleatory Insurer's promise to pay benefits The policies continue in force with no change. C.$2,113 Which of the following does a life insurance policy summary normally include? underwriter, Life Insurance Policies - Provisions, Options, Fundamentals of Financial Management, Concise Edition, Micro Oneliners: Urinary Tract Infections (UT. 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? When the principal gives the agent authority in writing, its referred to as, The terms must be accepted or rejected in full. Legal The insurer assuming the risk is called the mutual insurer reinsurer reciprocal insurer participating insurer, Karen is a producer who has obtained personal information about a client without having a legitimate reason to do so. Completing all applications and collecting initial premiums. 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 the contract must be aleatory How do insurers predict the increase of individual risks? ______ is NOT an element of a valid contract. 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. C) the terms must be accepted or rejected in full Cash surrender Extended term insurance Reduced paid-up insurance Life income annuity, Which type of rider will waive the premium on a child's life insurance policy if the parent paying the premium dies? Which of the following policies does NOT build cash value? After being properly appointed by the insurer. An individual who removes the risk of losing money in the stock market by never purchasing stocks is said to be engaging in. Which of the following best describes a symbol. One-sided or unfair insurance contracts can, however, exist if they contain provisions that disproportionately benefit one party. 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 What was his total bill? If Sharon MUST obtain Mikes signature in order to change the beneficiary, what kind of beneficiary designations is this? C) The insured and the insurer contribute equally to the contract. Which of these statements regarding the annuitant is CORRECT? B) NAIC 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? In order for a contract to be valid, it must. D) Insurance producers, If a material warranty violation on the part of the insured is found, what recourse does an insurer have? In this situation, who will receive Bob's policy proceeds? What types of life insurance are normally used for key employee indemnification? 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. Describe the structure. Conditional insurance contracts are insurance policies that require the insured person to satisfy certain conditions in order to become effective and/or to be paid out by the insurer. I hope you got the correct answer to your question. the insurer's obligations are dependent upon certain acts of the insured individual Which type of multiple protection policy pays on the death of the last person? D) Terminate the agent, Insurable interest does NOT occur in which of the following relationships? Who assumes the investment risk with a fixed annuity contract? Policyowner has the right to select the investment which will provide the greatest return. Which of the following is the best descriptive word? b) a contract is an agreement enforceable at law. Who prosecutes crimes that involve the violation of insurance laws that fall under US Code 1033? Premiums paid plus interest earned is returned to the beneficiary. 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 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. Intentional withholding of material facts that would affect an insurance policy's validity is called a(n). consideration be filed with the state B) premium only In a life or health insurance contract, "consideration" would be the, statements made in the application and the premium, A professional liability for which producers can be sued for mistakes of putting a policy into effect is called. B) Period to which the coverage exists In most insurance policies, the insurer is the only one who makes a legally binding promise to pay insured claims. Barry offers Chris his mountain cabin for the weekend to secure his order for his insurance business. Which of these factors is NOT taken into account when determining an applicants life insurance needs? B) Offer and acceptance Which settlement option pays a stated amount to an annuitant, but no residual value to a beneficiary? 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? B) the contract must be aleatory D) Principal Capacity, A unilateral contract is one in which B) A contract that has the potential for the unequal exchange of consideration for both parties. 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? Competent parties D) legal reserve, In an insurance contract, the element that shows each party is giving something of value is called A(n) ________ investigates, negotiates, and settles claims for a few on behalf of an insurance company. Administrative actions taken against a producer must be reported to the Commissioner within ____ days. 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 After 15 years, the cash value has accumulated to $100,000 and the policy's face amount has become $600,000. B) Equal consideration is required between the involved parties 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 A) Make whole 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 What would happen if a life insurance applicant is given a conditional receipt? However, corporations also can raise money by selling bonds or issuing additional shares of stock. 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. Adjustable life policy Variable universal policy Universal policy Modified whole life policy, A securities license is required for a life insurance producer to sell modified life insurance Modified Endowment Contracts (MEC) variable life insurance universal life insurance, The shorter the payment period, the higher the premium, The statement which best describes the relationship between the premiums of a whole life policy and the premium payment period is The shorter the payment period, the lower the premium The longer the payment period, the higher the premium The shorter the payment period, the higher the premium The payment period has no affect on the premium payment, Policyowner has the right to select the investment which will provide the greatest return, Variable life insurance and Universal life insurance are very similar. C) Law of Agency His insurance agent told him the policy would be paid up if he reached age 100. If threats or force is used to affect an insurance transaction, the unfair trade practice of __________ has been committed. Because of this, an insurance contract is considered Which of the following best describes the MIB? An applicants character and personal habits can be obtained for underwriting purposes from which source? 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"? 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? Bob dies 12 months later. Only the insurer is legally bound The insurers obligation to pay a death benefit upon an approved death claim. Adhesion clause She would like to borrow $15,000 against the cash value. C) apparent authority C) Charge more premium In exchange, the policyowner pays premiums. 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. Guaranteed Insurability rider Family term insurance rider Family whole insurance rider Payor benefit rider, A partial surrender is allowed in which of the following life policies? 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? What does the word level in Level Term describe? 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? Definition refers to a description which is given to a word, idea or phenomenon . A new stain removal product claims to completely remove the stains on 909090 percent of all stained garments. 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. Authority given to handle claims and process payments Which of the following are the premium payments for a universal life policy NOT used for? 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.

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