A) there must be an offer and acceptance both parties consent to the contract. Implied Because you're already amazing. 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. Please check below to know the answer. promises made 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. C) there must be legal reasons for entering into the contract Which of the following is NOT considered rebating? 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. 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? C) at the time of death Whole life policy that pays out its cash value over a 20 year period Whole life policy with premiums paid up after 20 years Term life policy that returns cash value after 20 years Term life policy with premiums paid up after 20 years, Which type of multiple protection policy pays on the death of the last person? The above question Which of the following BEST describes a conditional insurance contract?, Was part of Insurance MCQs & Answers. It is not necessary for the parties to exchange unequal consideration in a conditional insurance contract. D) Business owner and business client, Under a contract of adhesion, 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. D) Consideration, What are an applicant's statements concerning occupation, hobbies, and personal health history regarded as? Which of the following statements correctly describes a contract of indemnity? The two major actions required for a policyowner to comply with the Reinstatement Clause are, Provide evidence of insurability, pay past due premiums, The term which describes the fact that both parties of a contract may NOT receive the same value is referred to as. Which of the following statements about aleatory contracts is NOT true? Restoring an insured to the same condition as before a loss is an example of the principle of. Corporations, like all firms, can raise money by borrowing from banks and other lending institutions. 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 Which Of The Following Best Describes A Conditional Insurance Contract. The present cash value of the policy equals $250,000. 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? purpose, Insurable interest does NOT occur in which of the following relationships? What is the purpose for having an accelerated death benefit on a life insurance policy? Which Of The Following Statements About Personal Selling Is Correct? If threats or force is used to affect an insurance transaction, the unfair trade practice of __________ has been committed. Ken is a producer who has obtained Consumer Informations Reports under false pretenses. Which of the following does a producer NOT have a fiduciary responsibility to? Because of this, an insurance contract is considered voidable conditional aleatory unilateral, Who is responsible for assembling the policy forms for insureds? Which contract element is insurable interest a component of? The policies continue in force with no change. If the insured dies at any time during the 5 years, his beneficiary will receive the policy's face value. A) A contract that requires certain conditions or acts by the insured individual Which of these would NOT be an unfair claims practice? Sharon is the policyowner of a $500,000 life insurance policy. B) Implied authority In most insurance policies, the insurer is the only one who makes a legally binding promise to pay insured claims. Which of these is considered to be a Living Benefit option in a life insurance policy? Which of the following statements is true? Dual Life insurance Joint Life insurance Last Survivor Life insurance Shared Life insurance, Index whole life insurance contains a securities component that acts as a(n) hedge against inflation premium stabilizer means to lowering taxes on earnings incentive to purchase more coverage, Which of the following are the premium payments for a Universal life policy NOT used for? A type of group that has a constitution and bylaws and has been organized for purposes other than obtaining insurance is called a(n). A) Competent parties Only the insured can change the provisions For a trip to the hospital, Evan Appleton paid $1,656 in hospital charges, a$750 insurance deductible, and a $457 co-payment. Conditional, Under a contract of adhesion, 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. She is receiving the death benefit in payments of $10,000 per month until the principal and interest has been paid out. C) Consideration A) offer Accelerated death benefit rider Waiver of premium rider Extended term option Decreasing term insurance. B) Rescind the policy the terms must be accepted or rejected in full offer 1 pt. C) negotiation between the involved parties Which of the following BEST describes a conditional insurance contract. What is this called? 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 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. Death benefits Cash value Loading costs Separate account investments, Which policy feature makes a universal life policy different from a whole life policy? Principal Capacity, All of the following are elements of an insurance policy EXCEPT Which of the following best describes the MIB? the policy provides a straight, level $100,000 of coverage for 5 years. C) Insurable interest 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? What does the word level in Level Term describe? d. a deductible stated in the policy's provision. Which of the following is a reinstatement condition? B) Apparent C) The insured and the insurer contribute equally to the contract. C) the contract has been prepared by one party (the insurance company) with no negotiation between the applicant and the insurer C) statements made in the application and the premium D) collateral, Express power given to an agent in an agency agreement is 0 Answers/Comments. be in writing 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. A) there is an element of chance and potential for unequal exchange of value or consideration for both parties D) Competent parties, Which of the following BEST describes a conditional insurance contract? An individual who has a hobby racing cars once a month. The terms and conditions of insurance contracts should be carefully reviewed by policyholders before signing. I hope you got the correct answer to your question. An unintentional violation of Utah insurance law could lead a producer to a fine of up to _____ per violation. 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. legal reserve, What are an applicant's statements concerning occupation, hobbies, and personal health history regarded as? The principle of insurable interest, in regards to a life insurance contract, is accurately described in which statement? What kind of policy is this? What does a life insurance policy guarantee to the stated beneficiary upon the death of the insured? 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? A) Insurability D) Intent, Which contract element is insurable interest a component of? D) Offer and acceptance must be involved, B) Equal consideration is required between the involved parties, A contract requires Which of the following best describes a symbol. 2003-2023 Chegg Inc. All rights reserved. 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? 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. issuance of the policy What is the meaning of par value of stock with respect to the corporate form of organization? How could a company manager use a process cost summary to determine if the program to reduce water usage is successful? C) Aleatory Legal B) A paid premium Business partners Are you looking for the correct answer to the question Which of the following BEST describes a conditional insurance contract?? Orissa purchases a 10-year level term life insurance policy that has a death benefit of $200,000. One-sided or unfair insurance contracts can, however, exist if they contain provisions that disproportionately benefit one party. Which of these statements regarding the annuitant is CORRECT? B) errors and omissions C) Insurance carriers If the consumer price index had gone up 4%, how much may Ron increase the face value of the policy? What is created after policy proceeds are obtained in a lump sum and then immediately invested? Because of this, an insurance contract is considered C) fiduciary trust Sister and brother 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? Premium clause Post thoughts, events, experiences, and milestones, as you travel along the path that is uniquely yours. Karen is a producer who has obtained personal information about a client without having a legitimate reason to do so. D) Principal Capacity, A unilateral contract is one in which Countersignature, Which of the following is an example of the insured's consideration? In this situation, who will receive Bob's policy proceeds? Peril Hazard Loss factor Liability, Which of these techniques will remove the risk of losing money in the stock market by never purchasing stocks? 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? the contract is voidable upon proof of fraud. 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? Adjustable life Credit life Modified life Universal life, Whole life policy with premiums paid up after 20 years, Which of these would be the best example of a limited pay life insurance policy? A) Insurable interest 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) The death benefit would be $250,000 $750,000 $375,000 $500,000, What does the word "level" in Level Term describe? Which of the following is an annuity that is linked to a market-related index? imposed authority, In an insurance contract, the element that shows each party is giving something of value is called 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? Under the McCarran-Ferguson Act, what is the minimum penalty for this? A) producer's apparent authority 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? C) Business partners D) Conditional, Which of the following is NOT a requirement of a contract? In order to maintain coverage and make a successful claim, its crucial that policyholders read and understand their insurance contract carefully. Under a life insurance policy, what does the insuring clause state? C) Apparent authority An example of an unfair claims practice would be, Failing to effectuate prompt, fair, and fair equitable settlements of a claim. C) Probability of loss apparent authority Provide death benefits Provide money for retirement Provide living benefits Provide money for college, The Do Not Call Registry offers exemptions for calls placed from all of the following EXCEPT charities political organizations insurance sales calls surveys, protect consumers with guidelines regarding credit reporting and distribution, The Fair Credit and Reporting Act's main purpose is to assist in the underwriting of insurance policies protect insurers from an applicant's misrepresentation protect consumers with guidelines regarding credit reporting and distribution assist an insurer in determining an applicant's creditworthiness, What kind of life insurance policy issued by a mutual insurer provides a return of divisible surplus? 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. This is also known as a non-negotiable insurance contract, or an automatic contract. 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 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.
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