Which Of The Following Best Describes A Conditional Insurance Contract. 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? Adjustable universal life policy Flexible universal life policy Variable universal life policy Modified universal life policy, Jonas is a whole life insurance policyowner and would like to add coverage for his two children. Which of the following are the premium payments for a universal life policy NOT used for? C) Business partners implied the policy provides a straight, level $100,000 of coverage for 5 years. B) Law of adhesion For a trip to the hospital, Evan Appleton paid $1,656 in hospital charges, a$750 insurance deductible, and a $457 co-payment. C) promises made 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. A unilateral contract is one in which only one party makes a legally binding guarantee. Bob dies 12 months later. 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) Terminate the agent, Insurable interest does NOT occur in which of the following relationships? aleatory If threats or force is used to affect an insurance transaction, the unfair trade practice of __________ has been committed. Premium clause B) A contract that has the potential for the unequal exchange of consideration for both parties Parent and children A) Parties involved must be competent B) implied authority A) voidable Connect the text to your own experiences. Expert answered|Malekith22|Points 0| Log in for more information. 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? A) Unilateral Eventually, they retire and dissolve the business. Under a life insurance policy, what does the insuring clause state? The face amount and policy premium are not affected by the payment Before payment of the benefit is made, specific conditions must exist, such as suffering from a terminal illness There may be a dollar limit on the maximum benefit The benefit can be offered as a rider at a specific extra cost or may be at no cost, Which of the following is NOT part of an insurance contract? B) A contract that has the potential for the unequal exchange of consideration for both parties. In this situation, who will receive Bob's policy proceeds? D) Personal contract, The importance of a representation is demonstrated in what rule? C.$2,113 conditional C) Authority given to handle claims and process payments The policies continue in force with no change. What kind of policy is this? In this situation, who will receive Bob's policy proceeds? 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? implied authority See answers. His insurance agent told him the policy would be paid up if he reached age 100. Which of the following BEST describes a conditional insurance contract? What was his total bill? D) Tom, The deeds and actions of a producer indicate what kind of authority? C) the contract has been prepared by one party (the insurance company) with no negotiation between the applicant and the insurer The insurers obligation to pay a death benefit upon an approved death claim. D) unilateral, Who is responsible for assembling the policy forms for insureds? Which military service exclusion clause would pay upon his death? Express C) A contract where one party "adheres" to the terms of the contract promises made Which settlement option pays a stated amount to an annuitant, but no residual value to a beneficiary? Anheuser-Busch InBev is trying to reduce its water usage. 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? How could a company manager use a process cost summary to determine if the program to reduce water usage is successful? What is the purpose for having an accelerated death benefit on a life insurance policy? Risk Hazard Indemnity Peril, Insurance companies determine risk exposure by which of the following? 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? It allows for cash advances to be paid against the death benefit if the insured becomes terminally ill. James is the insured on a life insurance policy where his age was misstated on the application. The automatic premium loan provision authorized an insurer to withdraw from a policys cash value the amount of, Past due premiums that have not been paid by the end of the grace period. A policyowner is prohibited from making any changes to the policy without the beneficiarys written consent under which beneficiary designation? A) A contract that requires certain conditions or acts by the insured individual Because of this, an insurance contract is considered 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 All of the following are considered appropriate uses if life insurance for business purposes EXCEPT, Protecting the business by covering entry level employees with life insurance, Level premium permanent insurance accumulates a reserve that will eventually. Competent parties Offer and acceptance Consideration Legal purpose, What are an applicant's statements concerning occupation, hobbies, and personal health history regarded as? Craig purchased a life insurance policy for enabling his heirs to pay estate taxes. What does the Group Life underwriting risk selection process help protect insurance companies from? The coverage, conditions, and limitations in the master policy of a group contract can be found in which document? Restoring an insured to the same condition as before a loss is an example of the principle of. The face amount and premium will remain constant over the 10-year period. A paid premium However, corporations also can raise money by selling bonds or issuing additional shares of stock. B) Consideration 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. D) Offer and acceptance must be involved, B) Equal consideration is required between the involved parties, A contract requires One-sided or unfair insurance contracts can, however, exist if they contain provisions that disproportionately benefit one party. Which of these would NOT be an unfair claims practice? C) The insured and the insurer contribute equally to the contract. A) A contract that requires certain conditions or acts by the insured individual B) A contract that has the potential for the unequal exchange of consideration for both parties C) A contract where one party adheres to the terms of the contract D) A contract where only one party makes any kind of enforceable contract. D) collateral, Express power given to an agent in an agency agreement is (D) Only one party is legally bound to the contract. Which of the following statements is TRUE? Which market index is normally associated with an indexed annuitys rate of return? underwriting Business partners Barbaras policy includes a rider which allows her to purchase additional insurance at specific dates or events without evidence of insurability. Conditional, Under a contract of adhesion, Which of the following BEST describes a conditional insurance contract? A) Competent parties The amount of his disability income payments for an on-the-job injury may be reduced by. 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. 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? 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. Which of these legislation Acts is designed to protect consumers with guidelines regarding credit reporting and distribution? D) Business owner and business client, Under a contract of adhesion, Which type of multiple protection policy pays on the death of the last person? One-sided or unfair insurance contracts can, however, exist if they contain provisions that disproportionately benefit one party. How often must the Commissioner examine each domestic insurance company? Which of the following is an example of the insureds consideration? Term Straight Life Endowment Variable Life, A life insurance policy that has premiums fully paid up within a stated time period is called stated payment insurance limited universal insurance stated modified insurance limited payment insurance, Reggie purchased a life insurance policy with a face amount of $500,000. What does the word level in Level Term describe? The authority granted to a licensed producer is provided via the Who assumes the investment risk with a fixed annuity contract? B) Unequal consideration fichoh. Pay owns a 20-pay life policy with a paid-up dividend option. Implied Eventually, they retire and dissolve the business. The policy may be paid up early by using policy dividends. Intent, The deeds and actions of a producer indicate what kind of authority? acceptance term, whole, and universal life insurance increasing term insurance joint, credit, and group life insurance adjustable, permanent, and limited-pay life insurance, Peter has a policy where 80% to 90% of the premium is invested in traditional fixed income securities and the remainder of the premium is invested in contracts tied to a stipulated stock index. 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? C) Law of large numbers A. A) Only the insured pays the premium Which of these features are held exclusively by variable universal life insurance? It is a nonprofit organization that maintains underwriting information on applicants for life and health insurance. underwriter, Life Insurance Policies - Provisions, Options, Fundamentals of Financial Management, Concise Edition, Micro Oneliners: Urinary Tract Infections (UT. A new stain removal product claims to completely remove the stains on 909090 percent of all stained garments. Which option was chosen? Her son, Mike, is the beneficiary. B) premium only 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? 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) Consideration, What are an applicant's statements concerning occupation, hobbies, and personal health history regarded as? Increasing Term Life policy Nonparticipating policy Modified Whole Life policy Universal Life policy, What is the automatic continuance of insurance coverage referred to as? The death benefit would be $250,000 $750,000 $375,000 $500,000, What does the word "level" in Level Term describe? A) the appearance of authority an insurer gives to its agent Which type of annuity guarantees a stated number of income payments, whether or not the annuitant is still alive to receive them? 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? A bilateral contract is an agreement between two parties in which each side agrees to fulfill their side of the bargain. In most cases, the insured is. A) A contract that requires certain conditions or acts by the insured individual 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 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 most appropriate description ascribed to the meaning of definition from the options given is ; A precise statement of the qualities of an idea, object or process. Which statement is CORRECT when describing a contract of adhesion? B) guarantee An individual who removes the risk of losing money in the stock market by never purchasing stocks is said to be engaging in. imposed authority, In an insurance contract, the element that shows each party is giving something of value is called d. a deductible stated in the policy's provision. 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. Which course of action is the insurer entitled to when deliberate concealment is committed by the insured? The terms and conditions of insurance contracts should be carefully reviewed by policyholders before signing. D) Intent, Which contract element is insurable interest a component of? issuance of the policy Are you looking for the correct answer to the question Which of the following BEST describes a conditional insurance contract?? The policies continue in force with no change. Which of the following does a life insurance policy summary normally include? Preferred risk policies with reduced premiums are issued by insurance companies because the insured has, Better than average mortality or morbidity experience. Your email address will not be published. She is receiving the death benefit in payments of $10,000 per month until the principal and interest has been paid out. Which policy requires an agent to register with the National Association of Securities Dealers (NASD) before selling? This is an example of: An example of unfair discrimination would be, When an insurer charges a higher rate for insurance based on an insureds race, religion, or national origin, Fixed period settlement options are considered to be a form of a(n). Which contract element is insurable interest a component of? A contract that requires certain conditions or acts by the insured individual. In order for a contract to be valid, it must. Because of this, an insurance contract is considered voidable conditional aleatory unilateral, Who is responsible for assembling the policy forms for insureds? Which of the following BEST describes a conditional insurance contract? Rob recently died at age 60. An example of an unfair claims practice would be, Failing to effectuate prompt, fair, and fair equitable settlements of a claim. 30 seconds. (A) Both parties to the contract are bound to the terms. written contract Variable life insurance and Universal life insurance are very similar. 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"? y=f(x)=10x5x+1535if0x3if3