Insurers must maintain files of all documents used for solicitation for ____ year(s) after the last authorizes date of use. 30 seconds. What Benefit Does The Payor Clause On A Juvenile Life Policy Provide? B) premium only 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? What types of life insurance are normally used for key employee indemnification? An example of an unfair claims practice would be, Failing to effectuate prompt, fair, and fair equitable settlements of a claim. B) Rescind the policy Expert answered| selymi |Points 23307|. 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. Implied Which option was chosen? C) the authority to represent the insurer An insurer exaggerating its dividends in a magazine advertisement. Identify the type of financing (stock or bond) that best answers the question. 2. Consideration clause B) A paid premium If the other agreement or condition is performed, then the conditional contract is . D) Personal contract, The importance of a representation is demonstrated in what rule? 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? Which of the following does a life insurance policy summary normally include? the insurer's obligations are dependent upon certain acts of the insured individual Aleatory Contract Definition, Use in Insurance Policies - Investopedia Which military service exclusion clause would pay upon his death? D) Legal Purpose, Which of the following is present when an applicant stands to lose value if the insured dies? Which of the following would be considered an underwriting duty of an agent? Dorian exercises a nonforfeiture option by using his life policys cash value to purchase an extended term insurance option. B) Implied authority B) producer What is the advantage of adding this rider? Are you looking for the correct answer to the question Which of the following BEST describes a conditional insurance contract?? 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. D) statements made in the application only, C) statements made in the application and the premium, According to life insurance contract law, insurable interest exists definitions Insurance Quiz (MCQs) Archives - Management Notes D) A contract where only one party makes any kind of enforceable contract, Answer:A) A contract that requires certain conditions or acts by the insured individual. Definition refers to a description which is given to a word, idea or phenomenon . C) Law of large numbers The policy automatically converts to whole life after the 10-year period The face amount will remain constant and the premium will increase over the 10-year period The premium will remain constant and the face amount will increase over the 10-year period The face amount and premium will remain constant over the 10-year period, will no longer provide insurance protection, Shawn, Mike, and Dave are brothers who have a $100,000 "first to die" joint life policy covering all three of their lives. Insurance Cram Ch. 6 Flashcards | Chegg.com A) underwriting B. Which of the following BEST describes a conditional insurance contract? insured Which scenario would most life insurance policies exclude coverage for? Karen is a producer who has obtained personal information about a client without having a legitimate reason to do so. A life insurance contract guarantees to the beneficiary not only a death benefit, but a payment of a sum of money in perpetuity, called a death benefit for that purpose of insurance coverage. 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? Vegetable B. offer In order for a contract to be valid, it must. contain an offer and acceptance, In an insurance contract, the insurer is the only party legally obligated to perform. C) Bob's spouse Utah requires that an insurance producer must complete ___ hour(s) of continuing education on the subject of law and ethics every reporting period. 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. An unintentional violation of Utah insurance law could lead a producer to a fine of up to _____ per violation. Which of the following best describes a conditional insurance contract His insurance agent told him the policy would be paid up if he reached age 100. A paid premium Restoring an insured to the same condition as before a loss is an example of the principle of. Required fields are marked *. 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? 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. In this situation, who will receive Bob's policy proceeds? This legal agreement requires prior performance of another agreement or clause in order to be enforceable. there is the potential for an unequal exchange of value Legal Sister and brother The present cash value of the policy equals $250,000. Rob recently died at age 60. Preferred risk policies with reduced premiums are issued by insurance companies because the insured has, Better than average mortality or morbidity experience. __________. What is this an example of? In order to maintain coverage and make a successful claim, its crucial that policyholders read and understand their insurance contract carefully. Which of the following products would allow him to accomplish this? Competent parties Offer and acceptance Consideration Legal purpose, What are an applicant's statements concerning occupation, hobbies, and personal health history regarded as? Which of these is considered to be a Living Benefit option in a life insurance policy? Chapter 3: Legal Concepts Flashcards | Quizlet D) Competent parties, Which of the following BEST describes a conditional insurance contract? Sharon is the policyowner of a $500,000 life insurance policy. Accelerated death benefit An example of an unfair claims practice would be The agent's obligation to provide the proper amount of coverage The insurer's obligation to return all premiums upon an approved death claim The insurer's obligation to pay a death benefit upon an approved death claim The agent's obligation to pay a death benefit upon an approved death claim, Of the following dividend options, which of these is taxable? What is the name of the provision which states that a copy of the application must be attached to the policy when issued? All of the following are examples of a Business Continuation Plan EXCEPT. 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 life insurance policyowner does NOT have the right to, Fixed annuities provide each of the following EXCEPT. Georgia Life Insurance Exam Ch. 2 questions & answers for quizzes and The terms of the policy typically outline these conditions . Which contract element is insurable interest a component of? The type of annuity she is seeking is called. B) A contract that has the potential for the unequal exchange of consideration for both parties Field underwriting performed by the producer involves, Completing the application and collecting initial premium, An employee under a group insurance policy has the right to name a beneficiary and the right to, Convert to an individual policy in the event of employment termination. Chapter 3 Legal Concepts of the Insurance Contract - Quizlet C) adhesion If she dies 15 years after the policys inception date, how much will her beneficiary receive? d) an agreement requires a definite offer and an indefinite acceptance. Which of the following best describes the MIB? unilateral, Ambiguities in an insurance policy are always resolved in favor of the In the case of an insurance contract, the contracting parties are the claimant and the insurer. 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? express, ______ is NOT an element of a valid contract. One-sided or unfair insurance contracts can, however, exist if they contain provisions that disproportionately benefit one party. Which of these statements is true? Which of the following best defines diction? A. simile B - Weegy Which of these legislation Acts is designed to protect consumers with guidelines regarding credit reporting and distribution? Before using an assumed name in Utah, a producer MUST, Maria would like an annuity that provides a guaranteed accumulation or payout. Which of these features are held exclusively by variable universal life insurance? guarantee This is also known as a non-negotiable insurance contract, or an automatic contract. Barry offers Chris his mountain cabin for the weekend to secure his order for his insurance business. When initial premium is collected and policy is issued. B) only an offer Term, whole, and universal life insurance. C) Probability of loss Q. 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. 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. Which of the following does a producer NOT have a fiduciary responsibility to? Her son, Mike, is the beneficiary. 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? A marathon is 42.2 kilometers. C) Insurance carriers A) Sue the insured Which Of The Following Statements About Personal Selling Is Correct? 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. If she dies 15 years after the policy's inception date, how much will her beneficiary receive? 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. With a life insurance contract, the insurer binds itself to pay a certain sum upon the death of the insured. 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 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. Pay owns a 20-pay life policy with a paid-up dividend option. ______ is NOT an element of a valid contract. 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. Premiums paid plus interest earned is returned to the beneficiary. both parties consent to the contract. What is a corridor in relation to a Universal Life insurance policy? Bob dies 12 months later. Under the Fair Credit Reporting Act, what is the maximum penalty that may be imposed in Ken? Legal purpose B) NAIC B) A contract that has the potential for the unequal exchange of consideration for both parties All of the following are examples of pure risk EXCEPT. Only the insurer is legally bound The death benefit would be $250,000 $750,000 $375,000 $500,000, What does the word "level" in Level Term describe? What is the difference between insurance condition and warranty? 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? 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, D) A contract where only one party makes any kind of enforceable contract. Who prosecutes crimes that involve the violation of insurance laws that fall under US Code 1033? Which of the following is the best descriptive word? A - Weegy A) Sister and brother Which of the following BEST describes a conditional insurance contract She would like to borrow $15,000 against the cash value. Modified Endowment Contract Current assumptive whole life Credit life insurance Equity index whole life, What kind of life insurance policy covers two or more people with the death benefit payable upon the last person's death? Which course of action is the insurer entitled to when deliberate concealment is committed by the insured? An example of an unfair claims settlement practice is, Turning down a claim without providing the basis of denial. During periods of inflation, annuitants will experience a decrease in purchasing power of their payments. C) apparent authority the contract must be aleatory What kind of policy is this? Rob recently died at age 60. 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. Conditional, Under a contract of adhesion, Intent, The deeds and actions of a producer indicate what kind of authority? Which of these factors is NOT taken into account when determining an applicants life insurance needs? A.$1,656 Of the following dividend options, which of these is taxable? 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? I hope you got the correct answer to your question. C) representation A(n) ________ investigates, negotiates, and settles claims for a few on behalf of an insurance company. they are "take it or leave it" contracts. Log in for more information. D) misrepresentation, Which of the following is NOT required in the content of a policy? Eventually, they retire and dissolve the business. C) Implied 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? b) a contract is an agreement enforceable at law. 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. A minimum of 12 months after date of purchase, Insurance premium is determined by each of the following factors EXCEPT. B) Bob's estate B) Only the insured can change the provisions A) Insurability Which of the following is NOT considered rebating? Countersignature, Which of the following is an example of the insured's consideration? Which policy requires an agent to register with the National Association of Securities Dealers (NASD) before selling? 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? D) Utmost good faith, What does the insurance term "indemnity" refer to? 2003-2023 Chegg Inc. All rights reserved. Within how many days must a licensee notify the Commissioner of a change in address? Which of the following best describe the term definition Which of these is considered to be a disadvantage of owning this type of annuity? 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 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? 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? 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. 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 Sorry, you have Javascript Disabled! Eventually, they retire and dissolve the business. 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. 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. The death benefit paid will be what the premium would have purchased at the correct age, Converting a group plan to permanent life insurance requires, The conversion being applied for within 31 days of termination. B. What are an applicants statements concerning occupation, hobbies, and personal health history regarded as? be signed and witnessed by an attorney At what point may a producer sell insurance for an insurer? C) Business partners Which of the following BEST describes a conditional insurance contract? A policyowner can receive a percentage payment of the death benefits prior to death by using what kind of contract? Science Study Guide Questions. B) acceptance Provide an opinion. A) Unilateral contract A) the appearance of authority an insurer gives to its agent D) Insurance producers, If a material warranty violation on the part of the insured is found, what recourse does an insurer have? Lisa has recently bought a fixed annuity. Which of the following would be a valid reason why a policy premium would be higher than the standard premium? D) Evident authority, Which of the following is an example of the insured's consideration? 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? apparent 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. 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. 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) imposed authority, What makes an insurance policy a unilateral contract? It is not necessary for the parties to exchange unequal consideration in a conditional insurance contract. Bilateral Contract: Definition, How It Works, and Example - Investopedia Chapter3. Legal Concepts of the Insurance Contract A life insurance claim which involves a per capita distribution of policy proceeds would be payable to the. imposed authority, In an insurance contract, the element that shows each party is giving something of value is called 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.