Log in for more information. Pay owns a 20-pay life policy with a paid-up dividend option. Because of this, an insurance contract is considered A policyowner is prohibited from making any changes to the policy without the beneficiarys written consent under which beneficiary designation? Intent, The deeds and actions of a producer indicate what kind of authority? D) Offer and acceptance must be involved, B) Equal consideration is required between the involved parties, A contract requires C) Implied conditional insurer How do marketers use insights regarding the self-concept? B) Only the insured can change the provisions A) definitions $1,000 $3,000 $5,000 $7,000, A nonparticipating company is sometimes called a(n) alien insurer mutual insurer reinsurer stock insurer, Because dividends are considered to be a return of premium, Why are dividends from a mutual insurer not subject to taxation? 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? Within how many days must a licensee notify the Commissioner of a change in address? Proof of insurabiilty Changes in the insuring clause Premium increase Premium decrease, What is the name of the provision which states that a copy of the application must be attached to the policy when issued? The policies continue in force with no change. Which of these is considered to be a Living Benefit option in a life insurance policy? The amount of his disability income payments for an on-the-job injury may be reduced by. D) the contract must be a contract of adhesion, C) there must be legal reasons for entering into the contract, Ambiguities in an insurance policy are always resolved in favor of the C) the contract has been prepared by one party (the insurance company) with no negotiation between the applicant and the insurer 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? 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 If she dies 15 years after the policy's inception date, how much will her beneficiary receive? It is not necessary for the parties to exchange unequal consideration in a conditional insurance contract. 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? B) Bob's estate C) Consideration C) there must be legal reasons for entering into the contract Which type of multiple protection policy pays on the death of the last person? B) the unwritten authority that the agent is assumed to have A) State Insurance Departments C) promises made B) Indemnity In most cases, the insured is. A double indemnity benefit will be payable to Matts beneficiary is Matt, All of the following riders can increase the death benefit amount EXCEPT, All of these are valid policy dividend options for a life insurance policyowner EXCEPT, The premium for a Modified whole life policy is, Lower than the typical whole life policy during the first few years and then higher than typical for the remainder, A nonparticipating company is sometimes called a(n), Intentional withholding of material facts that would affect an insurance policys validity is called a(n), Signatures for an insurance application MUST be obtained by the producer from all of the following sources EXCEPT. The policy may be paid up early by using accumulated cash values The policy may be paid up early by using policy dividends The policy's premiums will increase after 20 years The policy's cash values steadily decrease after 20 years, the policy would be payable, minus the premium amount, If an insured dies during the grace period with no premiums paid the policy would be payable, minus the premium amount the policy would be payable only after the beneficiary makes past due premium payment all past premiums will be refunded with interest the claim would be denied, In what part of an insurance policy are policy benefits found? 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. A) Insurability A) offer and acceptance Accelerated death benefit An example of an unfair claims practice would be Which of the following is the best descriptive word? What types of life insurance are normally used for key employee indemnification? Which of the following BEST describes a conditional insurance contract? 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. Term insurance is appropriate for someone who, Seeks temporary protection and lower premiums. B) only an offer B) other insurance A) producer's apparent authority A marathon is 42.2 kilometers. In this situation, who will receive Bob's policy proceeds? D) only when determined by a judge, Xcel Chapter 3 Legal Concepts of the Insuranc, Chapter 3 Exam - Legal Concepts of the Insura, Chapter 4 Exam - Life Insurance - Types of Po, 4 - (Questions) Life Insurance Policies - Pro, Chapter 5: Life Insurance Premiums, Proceeds,, Chapter 4: Type of Insurance Policies Part 1, Chapter 4: Policy Provisions, Options and Rid, Calculus for Business, Economics, Life Sciences and Social Sciences, Karl E. Byleen, Michael R. Ziegler, Michae Ziegler, Raymond A. Barnett, Fundamentals of Engineering Economic Analysis, David Besanko, Mark Shanley, Scott Schaefer, The Cultural Landscape: An Introduction to Human Geography, AP Edition, Marketing Essentials: The Deca Connection, Carl A. Woloszyk, Grady Kimbrell, Lois Schneider Farese, Unit 7 AP Env. Net death benefit will be reduced if the loan is not repaid No interest will be charged on loan balance Term life policies are the only type of insurance that allows policy loans A loan can be taken out for up to the face amount of the policy, Ownership of a life insurance policy may be temporarily transferred with a(n) collateral assignment absolute assignment transferable assignment beneficiary assignment, provide evidence of insurability to the insurer, In order to activate the reinstatement clause of a lapsed life insurance policy, the insured MUST remit all past-due premiums within the grace period provide evidence of insurability to the insurer resubmit a new life insurance application provide a valid reason for the lapse, Which of the following is considered to be an alternative to a life settlement? Insurance contracts are unilateral contracts. B) the contract must be aleatory Barbaras policy includes a rider which allows her to purchase additional insurance at specific dates or events without evidence of insurability. 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. C) Insurance carriers The coverage, conditions, and limitations in the master policy of a group contract can be found in which document? Which of the following BEST describes a conditional insurance contract? 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 authority granted to a licensed producer is provided via the Connect with others, with spontaneous photos and videos, and random live-streaming. Of the following dividend options, which of these is taxable? 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? D) Only the insured is legally bound, Bob and Tom start a business. If the consumer price index had gone up 4%, how much may Ron increase the face value of the policy? Peril Hazard Loss factor Liability, Which of these techniques will remove the risk of losing money in the stock market by never purchasing stocks? A) Insurer's promise to pay benefits Consideration clause 3. B. D) Tom, The deeds and actions of a producer indicate what kind of authority? 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? A) there is the potential for an unequal exchange of value 2003-2023 Chegg Inc. All rights reserved. D) legal reserve, In an insurance contract, the element that shows each party is giving something of value is called When initial premium is collected and policy is issued. B) premium only 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. Which of the following is a reinstatement condition? Answer Explanation: A contract that requires certain conditions or acts by the insured individual. Under the Fair Credit Reporting Act, what is the maximum penalty that may be imposed on Ken? conditions, Legal purpose is a term used in contract law meaning A) Express authority issuance of the policy Who assumes the investment risk with a fixed annuity contract? Both partners are still married at the time of Bob's death. This legal agreement requires prior performance of another agreement or clause in order to be enforceable. 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 His insurance agent told him the policy would be paid up if he reached age 100. This rider is called a(n). 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.
