D) Terminate the agent, Insurable interest does NOT occur in which of the following relationships? A policyowner can receive a percentage payment of the death benefits prior to death by using what kind of contract? producer's apparent authority 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 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? 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? A) Competent parties What was his total bill? C) Competent parties C) Insurance carriers Consideration clause 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? discreet apparent implied express, Bob and Tom start a business. How soon can the benefit payments begin with a deferred annuity? A) Make whole Business owner and business client, The power given to an individual producer that is not specifically addressed in his/her contract is considered what type of authority? Which of the following would be a valid reason why a policy premium would be higher than the standard premium? d) an agreement requires a definite offer and an indefinite acceptance. C) Apparent authority A) express authority Interest on policy loans is tax deductible Premium payments are tax deductible Pre-death distributions will become taxable Cash value cannot be surrendered early, seeks temporary protection and lower premiums, Term insurance is appropriate for someone who seeks living benefits for themselves seeks a policy that builds cash value seeks temporary protection and lower premiums seeks permanent protection and higher premiums, Shirley has a $500,000 10-year non-renewable level term life policy. D) Legal Purpose, Which of the following is present when an applicant stands to lose value if the insured dies? A) A contract that requires certain conditions or acts by the insured individual. Which of the following BEST describes a conditional insurance contract? claim forms A type of group that has a constitution and bylaws and has been organized for purposes other than obtaining insurance is called a(n). B) 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 Which of these features are held exclusively by variable universal life insurance? The policies continue in force with no change. C) Law of Agency State Insurance Departments NAIC Insurance carriers Insurance producers, Intentional withholding of material facts that would affect an insurance policy's validity is called a(n) estoppel concealment adhesion misrepresentation, The power given to an individual producer that is not specifically addressed in his/her contract is considered what type of authority? (A) Both parties to the contract are bound to the terms. Which of these features are held exclusively by variable universal life insurance? Only the insurer is legally bound Which scenario would most life insurance policies exclude coverage for? B) Period to which the coverage exists Describe the structure. Which of these is considered to be a disadvantage of owning this type of annuity? What kind of policy is this? The coverage, conditions, and limitations in the master policy of a group contract can be found in which document? 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. Ron has a life insurance policy with a face value of $100,000 and a cost of living rider. 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. The power given to an individual producer that is not specifically addressed in his/her contract is considered what type of authority? consideration Only the insured pays the premium 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). What does a life insurance policy guarantee to the stated beneficiary upon the death of the insured? Which of the following is NOT considered rebating? The gap between the total death benefit and the policys cash value. d. a deductible stated in the policy's provision. What is the advantage of adding this rider? Aleatory Contract: A contract type in which the parties involved do not have to perform a particular action until a specific event occurs. C) Insurable interest Required fields are marked *. Eventually, they retire and dissolve the business. Her son, Mike, is the beneficiary. The authority granted to a licensed producer is provided via the Barbaras policy includes a rider which allows her to purchase additional insurance at specific dates or events without evidence of insurability. B) Parent and children It is not necessary for the parties to exchange unequal consideration in a conditional insurance contract. A. A) definitions C.$2,113 Adhesion clause 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. 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? a. medical expenses covered under Pat's employer-sponsored group health insurance. 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) D) A contract where only one party makes any kind of enforceable contract, A) A contract that requires certain conditions or acts by the insured individual, All of the following are elements of an insurance policy EXCEPT Nothing $100,000 $250,000 $500,000, Which type of life insurance is normally associated with a Payor Benefit rider? A policyowner is prohibited from making any changes to the policy without the beneficiarys written consent under which beneficiary designation? 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 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. fichoh. If threats or force is used to affect an insurance transaction, the unfair trade practice of __________ has been committed. Insurer's promise to pay benefits 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 settlement option pays a stated amount to an annuitant, but no residual value to a beneficiary? Which of these factors is NOT taken into account when determining an applicants life insurance needs? 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. C) representation the terms must be accepted or rejected in full This legal agreement requires prior performance of another agreement or clause in order to be enforceable. Law of Agency Implied Preferred risk policies with reduced premiums are issued by insurance companies because the insured has, Better than average mortality or morbidity experience. Can be converted to permanent coverage without evidence of insurability Coverage can be different for each child Premiums on this rider are not required until the limiting age is reached Increases the policy's overall cash value, Which type of policy combines the flexibility of a universal life policy with investment choices?
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