B) the contract must be aleatory The policy may be paid up early by using policy dividends. D) Terminate the agent, Insurable interest does NOT occur in which of the following relationships? 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 C) A contract where one party "adheres" to the terms of the contract. What does a life insurance policy guarantee to the stated beneficiary upon the death of the insured? Use the binomial distribution to find P(x13)P(x \leq 13)P(x13) if the stain removal product's claim is correct. A. 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. Which of the following BEST describes a conditional insurance contract? 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? D) Only the insured is legally bound, Bob and Tom start a business. Within how many days must a licensee notify the Commissioner of a change in address? A) Unilateral Insurers must maintain files of all documents used for solicitation for ____ year(s) after the last authorizes date of use. B) only one party (the insurer) makes any kind of legally enforceable promise During periods of inflation, annuitants will experience a decrease in purchasing power of their payments. D) Risk insured against, A professional liability for which producers can be sued for mistakes of putting a policy into effect is called B) the insurer's obligations are dependent upon certain acts of the insured individual D. $2,863. A) fiduciary bond 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)? 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 Implied 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. 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? Which of the following best describes the MIB? Which statement is CORRECT when describing a contract of adhesion? D) Conditional, Which of the following is NOT a requirement of a contract? When initial premium is collected and policy is issued. 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? Which of the following Best Describes a Conditional Insurance Contract A) Authority given in writing to an agent in the agency agreement A) express authority Intentional withholding of material facts that would affect an insurance policy's validity is called a(n). b. benefits paid under workers compensation. C) Law of Agency Sharing commissions with a producer licensed in the same line of business. If she dies 15 years after the policys inception date, how much will her beneficiary receive? 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? GENERAL LAW OF CONTRACTS A contract is an agreement enforceable by law. Which of the following is the best descriptive word? A - Weegy 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. Which policy requires an agent to register with the National Association of Securities Dealers (NASD) before selling? After first premium is paid, the face amount may be available to the beneficiary, Level premium term life insurance policies, Have premiums that are averaged over the policy period, A policyowner can receive an immediate payment before the insured dies by using a(n), Matt is applying for life insurance and requests a double indemnity rider. C) negotiation between the involved parties Which course of action is the insurer entitled to when deliberate concealment is committed by the insured? Flashcards - Connecticut Insurance Test 2021 - FreezingBlue Describe the structure. B) Unequal consideration 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 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? In most insurance policies, the insurer is the only one who makes a legally binding promise to pay insured claims. Death benefits Cash value Loading costs Separate account investments, Which policy feature makes a universal life policy different from a whole life policy? If the other agreement or condition is performed, then the conditional contract is . Craig purchased a life insurance policy for enabling his heirs to pay estate taxes. If thats the case, you dont have to worry anymore. Karen is a producer who has obtained personal information about a client without having a legitimate reason to do so. Bob dies 12 months later. C) Probability of loss Which of these would NOT be an unfair claims practice? To see this page as it is meant to appear, please enable your Javascript! A) Only the insured pays the premium A minimum of 12 months after date of purchase, Insurance premium is determined by each of the following factors EXCEPT. In order for a contract to be valid, it must. 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? B) Only the insured can change the provisions A) Legal D) Offer and acceptance must be involved, B) Equal consideration is required between the involved parties, A contract requires 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. After a number of years, the policy's cash value accumulates to $50,000 and the face amount becomes $350,000. Utah requires that an insurance producer must complete ___ hour(s) of continuing education on the subject of law and ethics every reporting period. The above question Which of the following BEST describes a conditional insurance contract?, Was part of Insurance MCQs & Answers. 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. A paid premium performance is conditioned upon a future occurrence. A policyowner is prohibited from making any changes to the policy without the beneficiarys written consent under which beneficiary designation? (D) Only one party is legally bound to the 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? Both partners are still married at the time of Bob's death. When handling premiums for an insured, an agent is acting in which capacity? What kind of policy is this? After 15 years, the cash value has accumulated to $100,000 and the policy's face amount has become $600,000. Business partners B) Offer and acceptance Because of this, an insurance contract is considered A) there is an element of chance and potential for unequal exchange of value or consideration for both parties 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. Insurance producer Jerry offers a $350 shopping card if they purchase an insurance product through him. Which of the following does a producer NOT have a fiduciary responsibility to? D) Consideration, What are an applicant's statements concerning occupation, hobbies, and personal health history regarded as? C.$2,113 Her son, Mike, is the beneficiary. Which Of The Following Statements About Personal Selling Is Correct? Under the Fair Credit Reporting Act, what is the maximum penalty that may be imposed in Ken? voidable Both partners are still married at the time of Bob's death. A contract that requires certain conditions or acts by the insured individual, According to life insurance contract law, insurable interest exists, The term which describes the fact that both parties of a contract may NOT receive the same value is referred to as. B) Bob's estate Which of the following best defines diction? A. simile B - Weegy Peril Hazard Loss factor Liability, Which of these techniques will remove the risk of losing money in the stock market by never purchasing stocks? Restoring an insured to the same condition as before a loss is an example of the principle of. If Mike dies first, the policy proceeds will no longer provide insurance protection will go to Mike's estate will be divided by probate will not be paid until the last brother dies, The gap between the total death benefit and the policy's cash value, What is a corridor in relation to a Universal Life insurance policy? 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. A) Unilateral contract Who is responsible for assembling the policy forms for insureds? Parent and children Anheuser-Busch InBev is trying to reduce its water usage. Which of these factors is NOT taken into account when determining an applicants life insurance needs? Which of the following is an example of the insureds consideration? C) promises made weegy. a) a conditional acceptance allows the parties to negotiate the definite terms of the contract upon the completion of the contract. D) imposed authority, What makes an insurance policy a unilateral contract? B) other insurance 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 B) Law of adhesion At what point may a producer sell insurance for an insurer? C) Bob's spouse 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. C) representation Which of the following BEST describes a conditional insurance contract? If the insured dies at any time during the 5 years, his beneficiary will receive the policy's face value. A) Parties involved in the contract Authority given to an agent to act outside the scope of 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, When the principal gives the agent authority in writing, it's referred to as Plot this function and determine if she is ready to attempt the Bluenose Marathon. 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. Sister and brother Parent and children Business partners Business owner and business client, The deeds and actions of a producer indicate what kind of authority? the contract must be aleatory A) offer D) underwriter, Reasonably necessary acts that an agent must perform for carrying out his/her expressly authorized duties are covered by an agent's Because you're already amazing. unilateral, Ambiguities in an insurance policy are always resolved in favor of the Only the insured pays the premium Only the insured can change the provisions Only the insurer is legally bound Only the insured is legally bound, A professional liability for which producers can be sued for mistakes of putting a policy into effect is called fiduciary bond errors and omissions fiduciary trust errors and oversights, In order for a contract to be valid, it must be filed with the state be signed and witnessed by an attorney be in writing contain an offer and acceptance, 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". other insurance A) voidable Accelerated death benefit rider Waiver of premium rider Extended term option Decreasing term insurance. Updated 10/6/2017 9:10:03 AM. c) a contract must be in writing. It allows for a spouse to be added as a rider to a life insurance policy It allows for policy loans to be advanced to the insured in the event of unemployment It allows for cash advances to be paid against the death benefit if the insured becomes terminally ill It allows for a third party to purchase a life insurance policy at a discounted rate and immediately advance a portion of the death benefit, All of these are standard exclusions found in a life insurance policy EXCEPT hazardous occupations aviation disability war, Which dividend option would an insurer invest the policyowner's money and add any interest earnings as the dividends accrue? Which scenario would most life insurance policies exclude coverage for? Food C. Plant D. Zucchini. Insurance interest does NOT occur in which of the following relationships? Which of these riders will pay a death benefit if the insureds spouse dies? B) Equal consideration is required between the involved parties What is the advantage of adding this rider? A) Tom's spouse B) premium only Term, whole, and universal life insurance. This is also known as a non-negotiable insurance contract, or an automatic contract. Options 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 0 Answers/Comments. Which military service exclusion clause would pay upon his death? 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". Which of the following is a reinstatement condition? What is the name of the provision which states that a copy of the application must be attached to the policy when issued? Expert answered|Malekith22|Points 0| Log in for more information. 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. d. a deductible stated in the policy's provision. C) Only the insurer is legally bound apparent authority Adhesion clause D) Insurance producers, If a material warranty violation on the part of the insured is found, what recourse does an insurer have? aleatory which of the following best describes a conditional insurance contract Which of these statements regarding the annuitant is CORRECT? 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? The gap between the total death benefit and the policy's cash value The gap between when a claim is filed and when the death benefit is received The amount of interest that has accumulated in the policy's cash value The point in time when the policy's cash value reaches $0, Rob purchased a standard whole life policy with a $500,000 death benefit when he was age 30. Orissa purchases a 10-year level term life insurance policy that has a death benefit of $200,000. Eventually, they retire and dissolve the business. which of the following best describes a conditional insurance contract A) State Insurance Departments A) Competent parties Advertisement. 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 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? C) Charge more premium D) Principal Capacity, A unilateral contract is one in which A marathon is 42.2 kilometers. producer D) Consideration clause, When the principal gives the agent authority in writing, it's referred to as Conditional Contracts: Everything You Need to Know - UpCounsel A) Sue the insured Only the insured pays the premium 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? The principle of insurable interest, in regards to a life insurance contract, is accurately described in which statement? A) estoppel c. income earned by Pat's spouse. When the term insurance expires. 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"? Law of Agency One-sided or unfair insurance contracts can, however, exist if they contain provisions that disproportionately benefit one party. A) the appearance of authority an insurer gives to its agent Consideration It is not necessary for the parties to exchange unequal consideration in a conditional insurance contract. A life insurance policyowner does NOT have the right to, Fixed annuities provide each of the following EXCEPT. A contract that requires certain conditions or acts by the insured individual. The insurers obligation to pay a death benefit upon an approved death claim. B) concealment In the case of an insurance contract, the contracting parties are the claimant and the insurer. Which of the following best describes a symbol. She would like to borrow $15,000 against the cash value. C) Authority given to handle claims and process payments B) A contract that has the potential for the unequal exchange of consideration for both parties LIFE INSURANCE LICENSING EXAM Flashcards | Chegg.com Legal Free Flashcards about Stack #2476860 - StudyStack
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