An insurance applicant with a below-average likelihood of loss is typically considered to be a. The death benefit would be $250,000 $750,000 $375,000 $500,000, What does the word "level" in Level Term describe? D) Tom, The deeds and actions of a producer indicate what kind of authority? 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? B) A contract that has the potential for the unequal exchange of consideration for both parties What is a corridor in relation to a Universal Life insurance policy? D. $2,863. the contract is voidable upon proof of fraud. Intentional withholding of material facts that would affect an insurance policy's validity is called a(n). Under the Fair Credit Reporting Act, what is the maximum penalty that may be imposed in Ken? What is the name of the provision which states that a copy of the application must be attached to the policy when issued? Premium clause Consideration clause Adhesion clause Contestability clause, When the principal gives the agent authority in writing, it's referred to as express authority implied authority apparent authority imposed authority, Ambiguities in an insurance policy are always resolved in favor of the insured producer insurer underwriter, ______ is NOT an element of a valid contract. 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 these legislation Acts is designed to protect consumers with guidelines regarding credit reporting and distribution? The type of annuity she is seeking is called. Because you're already amazing. A) Competent parties 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? 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. 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? Ron has a life insurance policy with a face value of $100,000 and a cost of living rider. 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". 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) Parent and children Which of the following best describes the MIB? Under a life insurance policy, what does the insuring clause state? B) at the time of application 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? Administrative actions taken against a producer must be reported to the Commissioner within ____ days. 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? d) an agreement requires a definite offer and an indefinite acceptance. 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. B) A contract that has the potential for the unequal exchange of consideration for both parties. conditional In order for a contract to be valid, it must. If she dies 15 years after the policys inception date, how much will her beneficiary receive? Which of the following is an annuity that is linked to a market-related index? A.$1,656 there must be legal reasons for entering into the contract Which type of multiple protection policy pays on the death of the last person? All of the following statements about Carl's coverage are correct. Who is responsible for assembling the policy forms for insureds? representation Which of the following statements is TRUE? Which dividend option would an insurer invest the policyowners money and add any interest earnings as the dividends accrue? An individual who has a hobby racing cars once a month. After a number of years, the policy's cash value accumulates to $50,000 and the face amount becomes $350,000. Which type of life insurance policy is this? A) offer C) Aleatory 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. A life insurance policyowner does NOT have the right to, Fixed annuities provide each of the following EXCEPT. 2 See answers underwriting weegy. A unilateral contract is one in which only one party makes a legally binding guarantee. written contract The above question Which of the following BEST describes a conditional insurance contract?, Was part of Insurance MCQs & Answers. Which of the following would be an act of Unfair Discrimination by an insurer? B) Law of adhesion What types of life insurance are normally used for key employee indemnification? A) express authority Insurance producer Jerry offers a $350 shopping card if they purchase an insurance product through him. C) Charge more premium Which of the following would be considered an underwriting duty of an agent? The coverage, conditions, and limitations in the master policy of a group contract can be found in which document? D) only one party makes any kind of enforceable promise, C) the terms must be accepted or rejected in full, What is implied authority defined as? C) Consideration A) Insurer's promise to pay benefits Which Of The Following Best Describes A Conditional Insurance Contract. 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? A bilateral contract is an agreement between two parties in which each side agrees to fulfill their side of the bargain. Log in for more information. ______ is NOT an element of a valid contract. D) Competent parties, Which of the following BEST describes a conditional insurance contract? A) there is an element of chance and potential for unequal exchange of value or 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? D) legal reserve, In an insurance contract, the element that shows each party is giving something of value is called B) the insurer's obligations are dependent upon certain acts of the insured individual C) Insurable interest Conditional, Under a contract of adhesion, producer's apparent authority D) Offer and acceptance must be involved, B) Equal consideration is required between the involved parties, A contract requires (B) Both parties adhere to the 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. For a trip to the hospital, Evan Appleton paid $1,656 in hospital charges, a$750 insurance deductible, and a $457 co-payment. Multiple-choice. b. benefits paid under workers compensation. C) fiduciary trust Joint life policy Survivorship life policy Dual life policy Multiple life policy, A life insurance policy that contains a guaranteed interest rate with the chance to earn a rate that is higher than the guaranteed rate is called whole life group life credit life universal life, Can be converted to permanent coverage without evidence of insurability, Donald is the primary insured of a life insurance policy and adds a children's term rider. This is also known as a non-negotiable insurance contract, or an automatic contract. Plot this function and determine if she is ready to attempt the Bluenose Marathon. In order to maintain coverage and make a successful claim, its crucial that policyholders read and understand their insurance contract carefully. How could a company manager use a process cost summary to determine if the program to reduce water usage is successful? Express The gap between the total death benefit and the policys cash value. acceptance 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 promises made 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? imposed authority, In an insurance contract, the element that shows each party is giving something of value is called 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) A contract where one party adheres to the terms of the contract Bob dies 12 months later. Both partners are still married at the time of Bob's death. If the other agreement or condition is performed, then the conditional contract is . Which type of life insurance offers flexible premiums, a flexible death benefit, and the choice of how the cash value will be invested? Implied A) insured With a life insurance contract, the insurer binds itself to pay a certain sum upon the death of the insured. C) A contract where one party "adheres" to the terms of the contract. Only the insurance company has legal obligations. 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. (D) Only one party is legally bound to the contract. renewal reinstatement resumption renovation, the MEC tends to be an investment vehicle, Pre-death distributions from a modified endowment contract (MEC) receive different tax treatment than other life insurance policies because the MEC has tax deductible premiums the MEC is considered an illegal product the MEC tends to be an investment vehicle the MEC does not accumulate cash value, The face amount and premium will remain constant over the 10-year period, Krissa purchases a 10-year level term life insurance policy that has a death benefit of $200,000. Have a great time ahead. Premiums paid plus interest earned is returned to the beneficiary. The policy may be paid up early by using policy dividends. A marathon is 42.2 kilometers. 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. In this situation, who will receive Bob's policy proceeds? C) representation She would like to borrow $15,000 against the cash value. A) Insurable interest Peril Hazard Loss factor Liability, Which of these techniques will remove the risk of losing money in the stock market by never purchasing stocks? Which of these statements regarding the annuitant is CORRECT? Which type of annuity guarantees a stated number of income payments, whether or not the annuitant is still alive to receive them? What is this called? consideration After 15 years, the cash value has accumulated to $100,000 and the policy's face amount has become $600,000. D) Utmost good faith, What does the insurance term "indemnity" refer to? there must be an offer and acceptance Which statement is CORRECT when describing a contract of adhesion? A) Authority given in writing to an agent in the agency agreement B) concealment D) Consideration, What are an applicant's statements concerning occupation, hobbies, and personal health history regarded as? C) aleatory c) a contract must be in writing. 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) the contract must be aleatory The power given to an individual producer that is not specifically addressed in his/her contract is considered what type of authority? Intent, The deeds and actions of a producer indicate what kind of authority? His insurance agent told him the policy would be paid up if he reached age 100. B) A contract that has the potential for the unequal exchange of consideration for both parties C) negotiation between the involved parties D) Insurance producers, If a material warranty violation on the part of the insured is found, what recourse does an insurer have? D) Only the insured is legally bound, Bob and Tom start a business. What is this an example of? 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 Eventually, they retire and dissolve the business. Before using an assumed name in Utah, a producer MUST, Maria would like an annuity that provides a guaranteed accumulation or payout. It is a nonprofit organization that maintains underwriting information on applicants for life and health insurance. A) fiduciary bond C) insurer In this situation, who will receive Bob's policy proceeds? Events are those which cannot be controlled by either . 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 A) Contract may be accepted or rejected by the insured, The term which describes the fact that both parties of a contract may NOT receive the same value is referred to as. the contract must be aleatory Which Of The Following Statements About Personal Selling Is Correct? C) Competent parties 2. Eventually, they retire and dissolve the business. Tom's spouse Bob's estate Bob's spouse Tom, Which contract element is insurable interest a component of? One-sided or unfair insurance contracts can, however, exist if they contain provisions that disproportionately benefit one party. Craig purchased a life insurance policy for enabling his heirs to pay estate taxes. 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? Typically, bilateral contracts involve an equal obligation or. An unintentional violation of Utah insurance law could lead a producer to a fine of up to _____ per violation.
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