Which type of life insurance policy is this? B) the contract must be aleatory Which of the following is the best descriptive word? D) underwriter, Reasonably necessary acts that an agent must perform for carrying out his/her expressly authorized duties are covered by an agent's In most insurance policies, the insurer is the only one who makes a legally binding promise to pay insured claims. Eventually, they retire and dissolve the business. Which of the following would be considered an underwriting duty of an agent? See answers. only one party makes any kind of enforceable promise, the terms must be accepted or rejected in full, 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 an example of the insureds consideration? In this situation, who will receive Bob's policy proceeds? Only the insurer is legally bound What is this called? Barbaras policy includes a rider which allows her to purchase additional insurance at specific dates or events without evidence of insurability. She is receiving the death benefit in payments of $10,000 per month until the principal and interest has been paid out. 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. 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. 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? A(n) ________ investigates, negotiates, and settles claims for a few on behalf of an insurance company. there is the potential for an unequal exchange of value Which of these factors is NOT taken into account when determining an applicants life insurance needs? The terms and conditions of insurance contracts should be carefully reviewed by policyholders before signing. 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? This legal agreement requires prior performance of another agreement or clause in order to be enforceable. Provide an opinion. promises made Which of the following BEST describes a conditional insurance contract? 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. express authority A type of group that has a constitution and bylaws and has been organized for purposes other than obtaining insurance is called a(n). 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 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? Incontestable period Probation period Reinstatement period Grace period, The benefit can be offered as a rider at a specific extra cost or may be at no cost, Which of these is NOT a characteristic of the Accelerated Death Benefit option? What is the meaning of par value of stock with respect to the corporate form of organization? A) State Insurance Departments With a life insurance contract, the insurer binds itself to pay a certain sum upon the death of the insured. Which of the following best describe the term definition. B) A contract that has the potential for the unequal exchange of consideration for both parties. 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? 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? The terms and conditions of insurance contracts should be carefully reviewed by policyholders before signing. Connect the text to your own experiences. A) Competent parties C) there must be legal reasons for entering into the contract Which settlement option pays a stated amount to an annuitant, but no residual value to a beneficiary? Which military service exclusion clause would pay upon his death? issuance of the policy A minimum of 12 months after date of purchase, Insurance premium is determined by each of the following factors EXCEPT. Sorry, you have Javascript Disabled! underwriting Term insurance is appropriate for someone who, Seeks temporary protection and lower premiums. Shirley has a $500,000 10-year-non-renewable level term life policy. Which type of multiple protection policy pays on the death of the last person? 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. Lisa has recently bought a fixed annuity. Under a life insurance policy, what does the insuring clause state? Under the McCarran-Ferguson Act, what is the minimum penalty for this? A marathon is 42.2 kilometers. Child term rider Payor rider Family maintenance rider Family income rider, What happens to the coverage under a children's term rider when that child reaches a certain specified age? be signed and witnessed by an attorney A) express authority producer A) offer and acceptance (A) Both parties to the contract are bound to the terms. implied authority What was his total bill? Which of the following BEST describes a conditional insurance contract? In this situation, who will receive Bob's policy proceeds? B) Unequal consideration 2 See answers Adhesion clause The terms of the policy typically outline these conditions, which may include paying premiums on time and maintaining the insured property in good condition. Eventually, they retire and dissolve the business. B) A contract that has the potential for the unequal exchange of consideration for both parties How could a company manager use a process cost summary to determine if the program to reduce water usage is successful? guarantee Which of the following products would allow him to accomplish this? What Benefit Does The Payor Clause On A Juvenile Life Policy Provide? In a life or health insurance contract, "consideration" would be the, statements made in the application and the premium, A professional liability for which producers can be sued for mistakes of putting a policy into effect is called. 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. aleatory Which Of The Following Best Describes A Conditional Insurance Contract. A) fiduciary bond A new stain removal product claims to completely remove the stains on 909090 percent of all stained garments. Eventually, they retire and dissolve the business. d) an agreement requires a definite offer and an indefinite acceptance. 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. Insurer's promise to pay benefits A life insurance claim which involves a per capita distribution of policy proceeds would be payable to the. Which of the following BEST describes a conditional insurance 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 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. 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"? Preferred risk policies with reduced premiums are issued by insurance companies because the insured has, Better than average mortality or morbidity experience. Premium clause C) Materiality of concealment Premiums paid plus interest earned is returned to the beneficiary. 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. 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)? they are "take it or leave it" contracts. B) premium only Sister and brother apparent authority 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? B) other insurance To see this page as it is meant to appear, please enable your Javascript! A.$1,656 C) the authority to represent the insurer B) concealment All of the following are examples of a Business Continuation Plan EXCEPT. C) insurer Waiver of premium Juvenile waiver Guaranteed insurability Payor benefit, Which of the following is a reinstatement condition? What is this an example of? 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? Which of the following best describes the MIB? 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. Legal Dorian exercises a nonforfeiture option by using his life policys cash value to purchase an extended term insurance option. B) Apparent Which of the following would be a valid reason why a policy premium would be higher than the standard premium? Log in for more information. Ron has a life insurance policy with a face value of $100,000 and a cost of living rider. Which of the following is true of the law of contracts? What is the purpose for having an accelerated death benefit on a life insurance policy? A person who is a nonsmoker, of average weight, and in excellent health would most likely be in which risk classification? D) imposed authority, What makes an insurance policy a unilateral 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". A) A contract that requires certain conditions or acts by the insured individual. 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? 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? Producers act in a(n) ________ capacity when holding insurance premiums. Which of the following does a life insurance policy summary normally include? B) the insurer's obligations are dependent upon certain acts of the insured individual Science Study Guide Questions. C) promises made A Dalhousie University student training for distance running finds that, after running for x hours, her distance traveled, in kilometers, is given by, y=f(x)={10xif0x35x+15if3