Which of the following best describe the term definition. D) misrepresentation, Which of the following is NOT required in the content of a policy? The above question Which of the following BEST describes a conditional insurance contract?, Was part of Insurance MCQs & Answers. 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. the contract must be a contract of adhesion, there must be legal reasons for entering into the contract, What makes an insurance policy a unilateral contract? Which of the following statements correctly describes a contract of indemnity? D) Terminate the agent, Insurable interest does NOT occur in which of the following relationships? the policy provides a straight, level $100,000 of coverage for 5 years. 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. C) Law of Agency Which Of The Following Best Describes A Conditional Insurance Contract. Insurer's promise to pay benefits A paid premium Legal purpose Intent, 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, What is implied authority defined as? C.$2,113 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. producer 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. What was his total bill? B) Contract of adhesion Write a summary of the main ideas. Which type of life insurance offers flexible premiums, a flexible death benefit, and the choice of how the cash value will be invested? It is not necessary for the parties to exchange unequal consideration in a conditional insurance contract. C) representation (C) Both parties exchange goods of equal value. Which of the following is the best descriptive word? Which Of The Following Best Describes A Conditional Insurance Contract definitions All of the following statements about Carl's coverage are correct. conditional written contract Which type of clause describes the following statement: "We have issued the policy in consideration of the representations in your applications and payment of the first-term premium". express, ______ is NOT an element of a valid contract. Anheuser-Busch InBev is trying to reduce its water usage. Which of the following best describes a symbol. 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? the contract must be aleatory How do insurers predict the increase of individual risks? Consideration clause One-sided or unfair insurance contracts can, however, exist if they contain provisions that disproportionately benefit one party. A) Make whole discreet apparent implied express, Bob and Tom start a business. Flashcards - Connecticut Insurance Test 2021 - FreezingBlue Use the binomial distribution to find P(x13)P(x \leq 13)P(x13) if the stain removal product's claim is correct. Which of the following is an annuity that is linked to a market-related index? Which of the following is a TRUE statement? B) Period to which the coverage exists Determine which insurer offers the best rates Determine which insurer offers the best policies Determine financial strength of an insurance company Determine which agent to use locally, A nonparticipating policy will provide a return of premium provide tax advantages not pay dividends give policyowners special privileges, A rating from a rating service company, such as A.M. Best, Which of the following is NOT considered advertising? Which type of clause describes the following statement: "We have issued the policy in consideration of the representations in your applications and payment of the first-term premium". A) definitions A. What is the advantage of adding this rider? Which Of The Following Best Describes A Conditional Insurance Contract 2 See answers 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? Insurance contracts are unilateral contracts. Express If she dies 15 years after the policys inception date, how much will her beneficiary receive? How many days is a temporary producers license valid? 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. A) there must be an offer and acceptance Your email address will not be published. Which dividend option would an insurer invest the policyowners money and add any interest earnings as the dividends accrue? Sharing commissions with a producer licensed in the same line of business. A) Sister and brother Which of the following BEST describes a conditional insurance contract? Which type of annuity guarantees a stated number of income payments, whether or not the annuitant is still alive to receive them? A unilateral contract is one in which only one party makes a legally binding guarantee. the contract is voidable upon proof of fraud. A) express authority A) Insurable interest D) Consideration clause, When the principal gives the agent authority in writing, it's referred to as Eventually, they retire and dissolve the business. apparent C) insurer B) Parent and children Which of the following BEST describes a conditional insurance contract? The terms of the policy typically outline these conditions . Before using an assumed name in Utah, a producer MUST, Maria would like an annuity that provides a guaranteed accumulation or payout. During periods of inflation, annuitants will experience a decrease in purchasing power of their payments. Insurance Multiple-Choice Questions Flashcards Preview - Brainscape C) A contract where one party "adheres" to the terms of the contract A. D) Insurance producers, If a material warranty violation on the part of the insured is found, what recourse does an insurer have? C) claim forms 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? acceptance A) Competent parties A) Tom's spouse 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. 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. Sorry, you have Javascript Disabled! B) Offer and acceptance promises made The policies continue in force with no change. D) the authority to add provisions to a contract, C) the authority to represent the insurer, Which of the following contracts is defined as "one that restores an injured party to the condition that was present before the loss"? Which of the following is CORRECT regarding the death benefit amount? The policies continue in force with no change. B) Only the insured can change the provisions In order to maintain coverage and make a successful claim, its crucial that policyholders read and understand their insurance contract carefully. B. D) Risk insured against, A professional liability for which producers can be sued for mistakes of putting a policy into effect is called 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? Insurance producer Jerry offers a $350 shopping card if they purchase an insurance product through him. Which of these is considered to be a disadvantage of owning this type of annuity? Question and answer. If the consumer price index had gone up 4%, how much may Ron increase the face value of the policy? 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? 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. 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. Life & Health 1 (Chapters 1, 2, 3, & 4) Flashcards Preview - Brainscape Principal Capacity, All of the following are elements of an insurance policy EXCEPT both parties consent to the contract. producer's apparent authority B) the contract must be aleatory What does the Group Life underwriting risk selection process help protect insurance companies from? If she dies 15 years after the policy's inception date, how much will her beneficiary receive? Science Study Guide Questions. Are you looking for the correct answer to the question Which of the following BEST describes a conditional insurance contract?? When handling premiums for an insured, an agent is acting in which capacity? A) A contract that requires certain conditions or acts by the insured individual 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 non-contributory health insurance plan helps the insurer avoid. She is receiving the death benefit in payments of $10,000 per month until the principal and interest has been paid out. 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. Which of these features are held exclusively by variable universal life insurance? She would like to borrow $15,000 against the cash value. Which of the following does a life insurance policy summary normally include? B) at the time of application 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. Law of Agency y=f(x)=10x5x+1535if0x3if3Chapter 3 Legal Concepts of the Insurance Contract - Quizlet Which of the following is true of the law of contracts? B) producer D) imposed authority, What makes an insurance policy a unilateral contract? Nothing $100,000 $250,000 $500,000, Which type of life insurance is normally associated with a Payor Benefit rider? Rob recently died at age 60. nonparticipating life insurance policy participating life insurance policy divisible surplus life insurance policy straight life insurance policy, Which of the following is considered to be an event or condition that increases the probability of an insured's loss? 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? Offering payment of approved claims within 30 days after affirming liability. C) promises made Legal At what point may a producer sell insurance for an insurer? How often must the Commissioner examine each domestic insurance company? ______ is NOT an element of a valid 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? _______ is the authority given to a producer to transact business on behalf of the insurer. Authority given in writing to an agent in the agency agreement What would happen if a life insurance applicant is given a conditional receipt? How soon can the benefit payments begin with a deferred annuity? Implied (B) Both parties adhere to the contract. Which of the following BEST describes a conditional insurance contract? 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. The present cash value of the policy equals $250,000. Definition refers to a description which is given to a word, idea or phenomenon . C) fiduciary trust Which of the following best describe the term definition The authority granted to a licensed producer is provided via the A) offer When the term insurance expires. WINDOWPANE is the live-streaming app for sharing your life as it happens, without filters, editing, or anything fake. If thats the case, you dont have to worry anymore. 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? A) there is an element of chance and potential for unequal exchange of value or consideration for both parties 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? $0 $5,000 $10,000 $15,000, Determine financial strength of an insurance company, What is the primary purpose of a rating service company such as A.M Best? Asked 10/6/2017 7:04:21 AM. 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. What is this an example of? Julie has a $100,000 30-year mortgage on her new home. Under the Fair Credit Reporting Act, what is the maximum penalty that may be imposed on Ken? Bilateral Contract: Definition, How It Works, and Example - Investopedia Policy Application Riders Certificate of Authority, A life insurance rider that allows an individual to purchase insurance as they grow older, regardless of insurability, is called a(n) guaranteed term rider guaranteed insurability rider accelerated benefit rider cost of living rider, The suicide clause of a life insurance policy states that if an insured commits suicide within a stated period from the policy's inception, the insurer will only be liable for a return of premiums paid minus indebtedness and with interest during the last 12 months minus indebtedness and without interest during the last 6 months, A life insurance policyowner does NOT have the right to change a beneficiary select a beneficiary take out a policy loan revoke an absolute assignment, A life insurance policy normally contains a provision that restricts coverage in the event of death under all of the following situations EXCEPT fare-paying passenger pilot of personal airplane suicide war, The insurer's obligation to pay a death benefit upon an approved death claim, Under a life insurance policy, what does the insuring clause state? 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. The principle of insurable interest, in regards to a life insurance contract, is accurately described in which statement? A conditional contract, also called a hypothetical contract, is a contract agreement that only requires performance once the delineated conditions are met. C) adhesion B) Consideration D) Competent parties, Which of the following BEST describes a conditional insurance contract? D) Utmost good faith, What does the insurance term "indemnity" refer to? Ken is a producer who has obtained Consumer Informations Reports under false pretenses. Under the McCarran-Ferguson Act, what is the minimum penalty for this? B) Offer and acceptance Which of the following BEST describes a conditional insurance contract. Rob recently died at age 60.