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? Producers act in a(n) ________ capacity when holding insurance premiums. After being properly appointed by the insurer. According to the Affordable Care Act (ACA), insurers can no longer deny health coverage due to pre-existing conditions unless that plan is a (n) Grandfathered plan Accident plan Individual plan Group plan Grandfathered plan Elizabeth is the beneficiary of a life insurance policy. d. a deductible stated in the policy's provision. 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. B) the contract must be aleatory Accelerated death benefit An example of an unfair claims practice would be A.$1,656 C) Contract must have a legal purpose All of the following are examples of pure risk EXCEPT. A) offer The power given to an individual producer that is not specifically addressed in his/her contract is considered what type of authority? D) Evident authority, Which of the following is an example of the insured's consideration? Accelerated death benefit rider Waiver of premium rider Extended term option Decreasing term insurance. B) the unwritten authority that the agent is assumed to have C) Authority given to handle claims and process payments Utah requires that an insurance producer must complete ___ hour(s) of continuing education on the subject of law and ethics every reporting period. One-sided or unfair insurance contracts can, however, exist if they contain provisions that disproportionately benefit one party. What is the name of the provision which states that a copy of the application must be attached to the policy when issued? both parties consent to the contract. C) 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? A) producer's apparent authority Which market index is normally associated with an indexed annuitys rate of return? Describe the structure. Contestability clause, In order for a contract to be valid, it must D) Authority given to an agent to act outside the scope of the agency agreement, 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, Legal purpose is a term used in contract law meaning Insurers must maintain files of all documents used for solicitation for ____ year(s) after the last authorizes date of use. She would like to borrow $15,000 against the cash value. offer Which of the following statements correctly describes a contract of indemnity? Question. C) Aleatory The amount of his disability income payments for an on-the-job injury may be reduced by. What Benefit Does The Payor Clause On A Juvenile Life Policy Provide? Shirley has a $500,000 10-year-non-renewable level term life policy. Under the Fair Credit Reporting Act, what is the maximum penalty that may be imposed in Ken? B) only one party (the insurer) makes any kind of legally enforceable promise A(n) ________ investigates, negotiates, and settles claims for a few on behalf of an insurance company. Barbaras policy includes a rider which allows her to purchase additional insurance at specific dates or events without evidence of insurability. 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 Express The present cash value of the policy equals $250,000. Which of the following BEST describes a conditional insurance contract? voidable What would happen if a life insurance applicant is given a conditional receipt? Under a life insurance policy, what does the insuring clause state? When initial premium is collected and policy is issued. Which of these riders will pay a death benefit if the insureds spouse dies? See 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. A life insurance policy that is subject to a contract interest rate is referred to as. 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? What type of life insurance could she purchase that is designed to pay off the loan balance if she dies within the 30-year period? D) Risk insured against, A professional liability for which producers can be sued for mistakes of putting a policy into effect is called acceptance promises made C) apparent authority D) Principal Capacity, A unilateral contract is one in which 2 See answers C) A contract where one party adheres to the terms of the contract Which of these features are held exclusively by variable universal life insurance? C) fiduciary trust Conditional, Under a contract of adhesion, Term insurance is appropriate for someone who, Seeks temporary protection and lower premiums. A paid premium A) when any business relationship exists A) Parties involved in the contract 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? Who prosecutes crimes that involve the violation of insurance laws that fall under US Code 1033? The insurers obligation to pay a death benefit upon an approved death claim. Adjustable life policy Modified life policy Endowment policy Universal life policy, How are survivorship life insurance policies helpful in estate planning? His insurance agent told him the policy would be paid up if he reached age 100. Both partners are still married at the time of Bob's death. C) insurer Because of this, an insurance contract is considered C) Business partners 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. A bilateral contract is an agreement between two parties in which each side agrees to fulfill their side of the bargain. Which of these statements is true? What is the advantage of adding this rider? In order for a contract to be valid, it must. Law of Agency Which of the following best describes the MIB? A) estoppel D) legal reserve, In an insurance contract, the element that shows each party is giving something of value is called Events are those which cannot be controlled by either . Authority given to handle claims and process payments What type of life insurance could she purchase that is designed to pay off the loan balance if she dies within the 30-year period? The terms of the policy typically outline these conditions . B) concealment A) there must be an offer and acceptance guarantee unilateral, Ambiguities in an insurance policy are always resolved in favor of the If the other agreement or condition is performed, then the conditional contract is . 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? An individual who removes the risk of losing money in the stock market by never purchasing stocks is said to be engaging in. 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? B) conditional 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 provision that allows this is called Partial Surrender Subrogation Automatic Premium Loan Accelerated Death Benefit, All of these are characteristics of a universal life insurance policy EXCEPT Flexible death benefit Fixed surrender value Flexible premiums Builds cash value, Which of the following policies does NOT build cash value? C) Insurable interest 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? express authority Insurable interest Insurance exchanges Law of large numbers and risk pooling Population table data, People with higher loss exposure have the tendency to purchase insurance more often than those at average risk. 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? Andy the annuitant dies before the annuity start date. It is a government agency that collects medical information on the insured from the insurance companies C. It is a member organization that protects against insolvent insurers D. underwriting 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. 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. Which of the following would be a valid reason why a policy premium would be higher than the standard premium? C) Law of large numbers producer D) Conditional, Which of the following is NOT a requirement of a contract? discreet apparent implied express, Bob and Tom start a business. underwriter, Life Insurance Policies - Provisions, Options, Fundamentals of Financial Management, Concise Edition, Micro Oneliners: Urinary Tract Infections (UT. c) a contract must be in writing. Consideration Orissa purchases a 10-year level term life insurance policy that has a death benefit of $200,000. 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"? If xxx actually turns out to be 131313, what do you think of the claim? 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? d) an agreement requires a definite offer and an indefinite acceptance. conditional Insurance contracts are unilateral contracts. In this situation, who will receive Bob's policy proceeds? Which of the following BEST describes a conditional insurance contract? A) Sue the insured Which military service exclusion clause would pay upon his death? D) Countersignature, 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 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 scenario would most life insurance policies exclude coverage for? 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 Use the binomial distribution to find P(x13)P(x \leq 13)P(x13) if the stain removal product's claim is correct. C) the terms must be accepted or rejected in full Which of the following does a producer NOT have a fiduciary responsibility to? What is the difference between insurance condition and warranty? purpose, Insurable interest does NOT occur in which of the following relationships? Business partners 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. B) errors and omissions Which Of The Following Statements About Personal Selling Is Correct? When the principal gives the agent authority in writing, its referred to as, The terms must be accepted or rejected in full. If threats or force is used to affect an insurance transaction, the unfair trade practice of __________ has been committed. What is created after policy proceeds are obtained in a lump sum and then immediately invested? A) Unilateral contract Consideration clause B) Equal consideration is required between the involved parties 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. Both partners are still married at the time of Bob's death. This rider is called a(n). Where would policy proceeds be paid if both the insured and primary beneficiary were killed in the same accident? Expert answered| selymi |Points 23307|. Preferred risk policies with reduced premiums are issued by insurance companies because the insured has, Better than average mortality or morbidity experience. It is not necessary for the parties to exchange unequal consideration in a conditional insurance contract. Which settlement option pays a stated amount to an annuitant, but no residual value to a beneficiary? Which contract element is insurable interest a component of? Completing all applications and collecting initial premiums. All of these are typically sources of underwriting information for life or health insurance EXCEPT. A) underwriting How do insurers predict the increase of individual risks? 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? Pay owns a 20-pay life policy with a paid-up dividend option. Only the insurance company has legal obligations. B) NAIC C) there must be legal reasons for entering into the contract C) Implied A) Unilateral D) misrepresentation, Which of the following is NOT required in the content of a policy? C) statements made in the application and the premium An individual who has a hobby racing cars once a month. 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? A policyowner is prohibited from making any changes to the policy without the beneficiarys written consent under which beneficiary designation? Which of the following BEST describes a conditional insurance contract. A) Insurer's promise to pay benefits What is the purpose for having an accelerated death benefit on a life insurance policy? 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? B) issuance of the policy When the term insurance expires. 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? Ron has a life insurance policy with a face value of $100,000 and a cost of living rider. C.$2,113 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. D) Insurance producers, If a material warranty violation on the part of the insured is found, what recourse does an insurer have? B) Indemnity A) Make whole Eventually, they retire and dissolve the business. Juvenile insurance Family income insurance Spouse insurance Term rider, A life insurance policy written on one contract for two people in which it is payable upon the first death is called Split Shared Joint Survivorship, Level premium permanent insurance accumulates a reserve that will eventually equal the face amount of the policy pay a dividend to the policyowner require the policyowner to make periodic withdrawals become larger than the face amount, A permanent life insurance policy where the policyowner pays premiums for a specified number of years is called a(n) adjustable policy limited pay policy level term policy variable universal policy, term, whole, and universal life insurance, What types of life insurance are normally used for key employee indemnification? GENERAL LAW OF CONTRACTS A contract is an agreement enforceable by law. If the insured dies at any time during the 5 years, his beneficiary will receive the policy's face value. Bob dies 12 months later. Food C. Plant D. Zucchini. Which of the following is the best descriptive word? A) Insurability Which of the following statements is true? All of the following statements about Carl's coverage are correct. Which of the following is a TRUE statement? Because you're already amazing. Nothing $100,000 $250,000 $500,000, Which type of life insurance is normally associated with a Payor Benefit rider?