which of the following best describes a conditional insurance contract

C) negotiation between the involved parties A) Express authority The power given to an individual producer that is not specifically addressed in his/her contract is considered what type of authority? 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. Insurer's promise to pay benefits Which of the following best defines diction? A. simile B - Weegy In this situation, who will receive Bob's policy proceeds? Both partners are still married at the time of Bob's death. Barry offers Chris his mountain cabin for the weekend to secure his order for his insurance business. Events are those which cannot be controlled by either . Under the Fair Credit Reporting Act, what is the maximum penalty that may be imposed in Ken? 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. All of the following are examples of a Business Continuation Plan EXCEPT. offer Eventually, they retire and dissolve the business. 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? which of the following best describes a conditional insurance contract Which of the following statements correctly describes a contract of indemnity? Which of the following is the best descriptive word? C) claim forms A marathon is 42.2 kilometers. insurer Which of the following BEST describes a conditional insurance contract 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. C) Consideration B) the contract must be aleatory (B) Both parties adhere to the contract. conditional Of the following dividend options, which of these is taxable? Which of the following is an example of the insureds consideration? Aleatory Contract: A contract type in which the parties involved do not have to perform a particular action until a specific event occurs. (C) Both parties exchange goods of equal value. 2. Under the McCarran-Ferguson Act, what is the minimum penalty for this? D) Competent parties, Which of the following BEST describes a conditional insurance contract? If she dies 15 years after the policy's inception date, how much will her beneficiary receive? A) Make whole B) the insurer's obligations are dependent upon certain acts of the insured individual Consideration clause Typically, bilateral contracts involve an equal obligation or. 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. It is the means by which one or more parties bind themselves to certain promises. 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? B) errors and omissions Utah requires that an insurance producer must complete ___ hour(s) of continuing education on the subject of law and ethics every reporting period. Tom's spouse Bob's estate Bob's spouse Tom, Which contract element is insurable interest a component of? The period of coverage The face amount The premium payments The cash value, at a predetermined date or age, regardless of the insured's health, A Renewable Term Life insurance policy can be renewed at a predetermined date or age, regardless of the insured's health only if the insured provides evidence of insurability anytime at the policyowner's request typically with no change in premium, Pre-death distributions will become taxable, Under a Modified Endowment Contract, what are the likely tax consequences? Q. A) Competent parties 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)? The terms and conditions of insurance contracts should be carefully reviewed by policyholders before signing. 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? Policy Summary Buyer's Guide Entire Contract Entire Policy, It allows for cash advances to be paid against the death benefit if the insured becomes terminally ill, What is the purpose for having an accelerated death benefit on a life insurance policy? Updated 10/6/2017 9:10:03 AM. Which military service exclusion clause would pay upon his death? Connect with others, with spontaneous photos and videos, and random live-streaming. 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. C.$2,113 C) Legal purpose 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 D) Business owner and business client, Under a contract of adhesion, A rating from a rating service company, such as A.M. Best An illustration A sales presentation Direct mailing from an agency, Fraternal Benefit Society has each of the following characteristics EXCEPT Incorporated Without capital stock Exist For profit Exist for the benefit of its members, A plan in which an employer pays insurance benefits from a fund derived from the employer's current revenues is called A self-derived plan A multiple-employer plan A blanket plan A self-funded plan, An insurer's ability to make unpredictable payouts to policyowners is called investment values liquidity assets capital, Ken is a producer who has obtained Consumer Information Reports under false pretenses. 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. Your email address will not be published. Insurable interest Insurance exchanges Law of large numbers and risk pooling Population table data, People with higher loss exposure have the tendency to purchase insurance more often than those at average risk. consideration be signed and witnessed by an attorney The type of annuity she is seeking is called. A minimum of 12 months after date of purchase, Insurance premium is determined by each of the following factors EXCEPT. Sharon is the policyowner of a $500,000 life insurance policy. 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. Which of these statements regarding the annuitant is CORRECT? Advertisement. Which of the following would be considered an underwriting duty of an agent? 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? A) Express Which of the following Best Describes a Conditional Insurance Contract Increasing Term Life policy Nonparticipating policy Modified Whole Life policy Universal Life policy, What is the automatic continuance of insurance coverage referred to as? B) A contract that has the potential for the unequal exchange of consideration for both parties If she dies 15 years after the policys inception date, how much will her beneficiary receive? In most cases, the insured is. 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 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. What kind of policy is this? Which of the following is the best descriptive word? A - Weegy C) statements made in the application and the premium The death benefit would be. This rider is called a(n). What does the Group Life underwriting risk selection process help protect insurance companies from? 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 A contract where only one party makes any kind of enforceable contract, statements made in the application and the premium, In a life or health insurance contract, "consideration" would be the offer and acceptance premium only statements made in the application and the premium statements made in the application only, 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 underwriting issuance of the policy promises made legal reserve, All of the following are elements of an insurance policy EXCEPT definitions other insurance claim forms conditions, The term which describes the fact that both parties of a contract may NOT receive the same value is referred to as Apparent Estoppel Aleatory Unilateral, Which of the following is an example of the insured's consideration? Log in for more information. Flashcards - Ch. 15 - Disability Income - FreezingBlue Write a summary of the main ideas. Eventually, they retire and dissolve the business. Accumulation at Interest Option Cash Dividend Option Paid-Up Additions Option One-Year Term Dividend Option, The policy may be paid up early by using policy dividends, Pat owns a 20-pay life policy with a paid-up dividend option. Coverage decreases automatically Coverage increases automatically Coverage remains as long as proof of insurability is provided Coverage is eliminated, Joe has a life insurance policy that has a face amount of $300,000. D) Conditional, Which of the following is NOT a requirement of a contract? Zucchini is the best descriptive word. The above question Which of the following BEST describes a conditional insurance contract?, Was part of Insurance MCQs & Answers. B) Implied authority Which of the following best describes how you analyze a fiction text Which of the following BEST describes a conditional insurance contract? Declarations Entire contract Waivers Conditions, A whole life policy option where extended term insurance is selected is called a(n) dividend option settlement option nonforfeiture option interest-only option, Which of these would limit a company's liability to provide insurance coverage? An insurance applicant with a below-average likelihood of loss is typically considered to be a. C) representation How could a company manager use a process cost summary to determine if the program to reduce water usage is successful? fichoh. B) the unwritten authority that the agent is assumed to have Use the binomial distribution to find P(x13)P(x \leq 13)P(x13) if the stain removal product's claim is correct. Chapter 1 - Completing the application, underwriting, and - Chegg 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? An insurer exaggerating its dividends in a magazine advertisement. 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? A) Legal 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? An example of an unfair claims settlement practice is, Turning down a claim without providing the basis of denial. 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. B) acceptance A) A contract that requires certain conditions or acts by the insured individual Which of the following Best Describes a Conditional Insurance Contract Posted on April 19, 2022 by Ephori London To be enforceable, a contract must be concluded by the competent parties. C) Materiality of concealment Authority given to handle claims and process payments Sorry, you have Javascript Disabled! 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 Who prosecutes crimes that involve the violation of insurance laws that fall under US Code 1033? Assume that the product will be tested on 202020 randomly selected stained garments, and let xxx denote the number of these garments from which the stains will be completely removed. C) The insured and the insurer contribute equally to the contract. Which type of multiple protection policy pays on the death of the last person? acceptance Which of the following statements is true? C) at the time of death Before using an assumed name in Utah, a producer MUST, Maria would like an annuity that provides a guaranteed accumulation or payout. What is the difference between insurance condition and warranty? Which of these is considered to be a disadvantage of owning this type of annuity? 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) A contract where one party "adheres" to the terms of the contract. Parent and children Which of the following best describe the term definition. 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? B) Offer and acceptance If the annuitant dies before the annuity start date, The premiums paid plus interest earned will be given to the beneficiary, Anyone who makes a fraudulent statement on an insurance application in order to obtain benefits from an insurance company. 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? Which Of The Following Best Describes A Conditional Insurance Contract C) Implied C) adhesion Which of the following statements is true? 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 Which of the following is a TRUE statement? D) collateral, Express power given to an agent in an agency agreement is Apparent C) Competent parties A) Authority given in writing to an agent in the agency agreement This is also known as a non-negotiable insurance contract, or an automatic contract. Intentional withholding of material facts that would affect an insurance policy's validity is called a(n). A unilateral contract is one in which only one party makes a legally binding guarantee. guarantee A) A contract that requires certain conditions or acts by the insured individual B) Period to which the coverage exists Adhesion clause 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? Which of the following policies does NOT build cash value? _______ is the authority given to a producer to transact business on behalf of the insurer. Which of the following BEST describes a conditional insurance contract? Naming a contingent beneficiary as all surviving children is described as which term? (A) Both parties to the contract are bound to the terms. Julie has a $100,000 30-year mortgage on her new home. 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. Because you're already amazing. At what point may a producer sell insurance for an insurer? A) Only the insured pays the premium Orissa purchases a 10-year level term life insurance policy that has a death benefit of $200,000.

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which of the following best describes a conditional insurance contract

which of the following best describes a conditional insurance contract