which of the following best describes a conditional insurance contract

Death benefits Cash value Loading costs Separate account investments, Which policy feature makes a universal life policy different from a whole life policy? voidable Intentional withholding of material facts that would affect an insurance policy's validity is called a(n). Which of the following are the premium payments for a universal life policy NOT used for? discreet Orissa purchases a 10-year level term life insurance policy that has a death benefit of $200,000. B) Rescind the policy D) Principal Capacity, A unilateral contract is one in which The present cash value of the policy equals $250,000. Under the McCarran-Ferguson Act, what is the minimum penalty for this? conditions, Legal purpose is a term used in contract law meaning B) concealment Her son, Mike, is the beneficiary. Multiple-choice. Which of the following is a requirement to attain an Utah resident producer license? What is this an example of? Tom's spouse Bob's estate Bob's spouse Tom, Which contract element is insurable interest a component of? be signed and witnessed by an attorney D) Intent, Which contract element is insurable interest a component of? warranty Because of this, an insurance contract is considered A) A contract that requires certain conditions or acts by the insured individual. Which contract element is insurable interest a component of? D) imposed authority, What makes an insurance policy a unilateral contract? An insurance applicant with a below-average likelihood of loss is typically considered to be a. How could a company manager use a process cost summary to determine if the program to reduce water usage is successful? 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. What is the advantage of adding this rider? D) Business owner and business client, Under a contract of adhesion, The policies continue in force with no change. Rob recently died at age 60. D) Terminate the agent, Insurable interest does NOT occur in which of the following relationships? Naming a contingent beneficiary as all surviving children is described as which term? Julie has a $100,000 30-year mortgage on her new home. Adjustable life policy Modified life policy Endowment policy Universal life policy, How are survivorship life insurance policies helpful in estate planning? B. which of the following best describes a conditional insurance contract? A) Parties involved must be competent AzAnswer team is here with the right answer to your question. Which course of action is the insurer entitled to when deliberate concealment is committed by the insured? 2. Which of the following is a reinstatement condition? The annuitants life expectancy determines the annuity payments, No one may be denied coverage by an insurance company due to, A life insurance rider that allows an individual to purchase insurance as they grow older, regardless of insurability, is called a(n). How often must an insurance producers license in Utah be renewed? Pay owns a 20-pay life policy with a paid-up dividend option. A) One party is restored to the same financial position the party was in before the loss occurred. C) the contract has been prepared by one party (the insurance company) with no negotiation between the applicant and the insurer Premiums paid plus interest earned is returned to the beneficiary. D) Risk insured against, A professional liability for which producers can be sued for mistakes of putting a policy into effect is called the contract is voidable upon proof of fraud. A) producer's apparent authority Ron has a life insurance policy with a face value of $100,000 and a cost of living rider. What does a life insurance policy guarantee to the stated beneficiary upon the death of the insured? C) claim forms 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? A policyowner is prohibited from making any changes to the policy without the beneficiarys written consent under which beneficiary designation? 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 This legal agreement requires prior performance of another agreement or clause in order to be enforceable. A unilateral contract is one in which only one party makes a legally binding guarantee. Required fields are marked *. What does the word level in Level Term describe? 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 A life insurance policyowner does NOT have the right to, Fixed annuities provide each of the following EXCEPT. 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? $2,406 Insurance interest does NOT occur in which of the following relationships? Lisa has recently bought a fixed annuity. C) consideration D) Tom, The deeds and actions of a producer indicate what kind of authority? acceptance B) at the time of application Which of the following BEST describes a conditional insurance contract? 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? 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? 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? Which of these features are held exclusively by variable universal life insurance? Bob and Tom start a business. Waiver of premium Juvenile waiver Guaranteed insurability Payor benefit, Which of the following is a reinstatement condition? A conditional contract, also called a hypothetical contract, is a contract agreement that only requires performance once the delineated conditions are met. What is a corridor in relation to a Universal Life insurance policy? B) Parent and children Offering payment of approved claims within 30 days after affirming liability. Which statement is CORRECT when describing a contract of adhesion? Aleatory Contract: A contract type in which the parties involved do not have to perform a particular action until a specific event occurs. 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) Apparent authority Bob dies 12 months later. guarantee The agent's obligation to provide the proper amount of coverage The insurer's obligation to return all premiums upon an approved death claim The insurer's obligation to pay a death benefit upon an approved death claim The agent's obligation to pay a death benefit upon an approved death claim, Of the following dividend options, which of these is taxable? 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? State Insurance Departments NAIC Insurance carriers Insurance producers, Intentional withholding of material facts that would affect an insurance policy's validity is called a(n) estoppel concealment adhesion misrepresentation, The power given to an individual producer that is not specifically addressed in his/her contract is considered what type of authority? D) errors and oversights, In an insurance contract, the insurer is the only party legally obligated to perform. Which of these legislation Acts is designed to protect consumers with guidelines regarding credit reporting and distribution? GENERAL LAW OF CONTRACTS A contract is an agreement enforceable by law. C) Probability of loss Under the Fair Credit Reporting Act, what is the maximum penalty that may be imposed on Ken? both parties consent to the contract. 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? Both partners are still married at the time of Bob's death. C) insurer 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? It is a nonprofit organization that maintains underwriting information on applicants for life and health insurance. B) producer Which dividend option would an insurer invest the policyowners money and add any interest earnings as the dividends accrue? Food C. Plant D. Zucchini. B) Contract of adhesion Authority given in writing to an agent in 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 Authority given to handle claims and process payments Authority given to an agent to act outside the scope of the agency agreement, The authority granted to a licensed producer is provided via the producer's apparent authority written contract Law of Agency Principal Capacity, Insurable interest does NOT occur in which of the following relationships? A) Make whole 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. A) Competent parties How do marketers use insights regarding the self-concept? B) Implied authority A. be in writing imposed authority, In an insurance contract, the element that shows each party is giving something of value is called Rob purchased a standard whole life policy with a $500,000 death benefit when we was age 30. a. medical expenses covered under Pat's employer-sponsored group health insurance. Because of this, an insurance contract is considered voidable conditional aleatory unilateral, Who is responsible for assembling the policy forms for insureds? A) Insurable interest Contestability clause, In order for a contract to be valid, it must B) Bob's estate The policy automatically converts to whole life after the 10-year period The face amount will remain constant and the premium will increase over the 10-year period The premium will remain constant and the face amount will increase over the 10-year period The face amount and premium will remain constant over the 10-year period, will no longer provide insurance protection, Shawn, Mike, and Dave are brothers who have a $100,000 "first to die" joint life policy covering all three of their lives. B) issuance of the policy The gap between the total death benefit and the policys cash value. The type of annuity she is seeking is called. 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"? What types of life insurance are normally used for key employee indemnification? Please check below to know the answer. weegy. Express All of the following statements about Carl's coverage are correct. b) a contract is an agreement enforceable at law. D) Competent parties, Which of the following BEST describes a conditional insurance contract? issuance of the policy 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? B) A contract that has the potential for the unequal exchange of consideration for both parties. 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. Bob dies 12 months later. Policyowner has the right to select the investment which will provide the greatest return. A) A contract that requires certain conditions or acts by the insured individual Where would policy proceeds be paid if both the insured and primary beneficiary were killed in the same accident? 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. 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 One-sided or unfair insurance contracts can, however, exist if they contain provisions that disproportionately benefit one party. C) aleatory In most cases, the insured is. The two major actions required for a policyowner to comply with the Reinstatement Clause are, Provide evidence of insurability, pay past due premiums, The term which describes the fact that both parties of a contract may NOT receive the same value is referred to as. Dorian exercises a nonforfeiture option by using his life policys cash value to purchase an extended term insurance option. contain an offer and acceptance, In an insurance contract, the insurer is the only party legally obligated to perform. Barbaras policy includes a rider which allows her to purchase additional insurance at specific dates or events without evidence of insurability. 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? She is receiving the death benefit in payments of $10,000 per month until the principal and interest has been paid out. 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. B) Period to which the coverage exists In exchange, the policyowner pays premiums. This rider is called a(n). What would happen if a life insurance applicant is given a conditional receipt? B) NAIC 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. $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? Which of these is considered to be a Living Benefit option in a life insurance policy? Before using an assumed name in Utah, a producer MUST, Maria would like an annuity that provides a guaranteed accumulation or payout. A) offer and acceptance A) A contract that requires certain conditions or acts by the insured individual Legal Consideration Competent parties Countersignature, A contract that requires certain conditions or acts by the insured individual, Which of the following BEST describes a conditional insurance contract? In the case of an insurance contract, the contracting parties are the claimant and the insurer. A marathon is 42.2 kilometers. A new stain removal product claims to completely remove the stains on 909090 percent of all stained garments. A) offer __________. A) there is an element of chance and potential for unequal exchange of value or consideration for both parties written 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. What is this called? B) Indemnity 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)? Which of the following does a producer NOT have a fiduciary responsibility to? 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? A) State Insurance Departments A. promises made

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