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". C) insurer A) there is the potential for an unequal exchange of value Q. Which military service exclusion clause would pay upon his death? Authority given to handle claims and process payments written contract Adjustable life policy Modified life policy Endowment policy Universal life policy, How are survivorship life insurance policies helpful in estate planning? B) Implied authority B) only an offer Producers act in a(n) ________ capacity when holding insurance premiums. _______ is the authority given to a producer to transact business on behalf of the insurer. Log in for more information. Intent, The deeds and actions of a producer indicate what kind of authority? The present cash value of the policy equals $250,000. C) the contract has been prepared by one party (the insurance company) with no negotiation between the applicant and the insurer The policies continue in force with no change. B) Period to which the coverage exists B) conditional Insurance producer Jerry offers a $350 shopping card if they purchase an insurance product through him. B) premium only The insured, on the other hand, makes few, if any, legally binding promises to the insurer. apparent authority insured A) the appearance of authority an insurer gives to its agent Conditional, Under a contract of adhesion, D) unilateral, Who is responsible for assembling the policy forms for insureds? a) a conditional acceptance allows the parties to negotiate the definite terms of the contract upon the completion of the contract. Which policy requires an agent to register with the National Association of Securities Dealers (NASD) before selling? A fixed cash value A flexible premium schedule A fixed death benefit The ability to take out a policy loan, The least expensive option to pay off a 30-year mortgage balance would be convertible term life decreasing term life adjustable term life increasing term life, Pre-death distributions are typically taxable, Which of these describes the result of a modified endowment contract that failed to meet the seven-pay test? If the insured dies at any time during the 5 years, his beneficiary will receive the policy's face value. 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? An example of an unfair claims practice would be, Failing to effectuate prompt, fair, and fair equitable settlements of a claim. 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? Competent parties Offer and acceptance Consideration Legal purpose, What are an applicant's statements concerning occupation, hobbies, and personal health history regarded as? D) Legal Purpose, Which of the following is present when an applicant stands to lose value if the insured dies? The gap between the total death benefit and the policys cash value. ______ is NOT an element of a valid contract. If Sharon MUST obtain Mikes signature in order to change the beneficiary, what kind of beneficiary designations is this? Which of the following would be considered an underwriting duty of an agent? The policies continue in force with no change. 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. C) Authority given to handle claims and process payments C) A contract where one party "adheres" to the terms of the contract Karen is a producer who has obtained personal information about a client without having a legitimate reason to do so. C) Only the insurer is legally bound 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. Adhesion clause Who is responsible for assembling the policy forms for insureds? B) Equal consideration is required between the involved parties 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 With a life insurance contract, the insurer binds itself to pay a certain sum upon the death of the insured. apparent A) offer Bob dies 12 months later. Consideration clause For a trip to the hospital, Evan Appleton paid $1,656 in hospital charges, a$750 insurance deductible, and a $457 co-payment. Under the Fair Credit Reporting Act, what is the maximum penalty that may be imposed in Ken? C) Bob's spouse In order to maintain coverage and make a successful claim, its crucial that policyholders read and understand their insurance contract carefully. 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? C) claim forms A conditional contract, also called a hypothetical contract, is a contract agreement that only requires performance once the delineated conditions are met. When the term insurance expires. C) adhesion 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? All of the following statements about Carl's coverage are correct. weegy. Peter has a policy where 80% to 90% of the premium is invested in traditional fixed income securities and the remainder of the premium is invested in contracts tied to a stipulated stock index. B) Parent and children offer The death benefit paid will be what the premium would have purchased at the correct age, Converting a group plan to permanent life insurance requires, The conversion being applied for within 31 days of termination. Which of the following is a requirement to attain an Utah resident producer license? A marathon is 42.2 kilometers. 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. 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 What Benefit Does The Payor Clause On A Juvenile Life Policy Provide? term, whole, and universal life insurance increasing term insurance joint, credit, and group life insurance adjustable, permanent, and limited-pay life insurance, Peter has a policy where 80% to 90% of the premium is invested in traditional fixed income securities and the remainder of the premium is invested in contracts tied to a stipulated stock index. GENERAL LAW OF CONTRACTS A contract is an agreement enforceable by law. C) the authority to represent the insurer 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"? A) express authority 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? A) definitions A) Parties involved must be competent 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. consideration Julie has a $100,000 30-year mortgage on her new home. C) Aleatory Which of the following does a life insurance policy summary normally include? An unintentional violation of Utah insurance law could lead a producer to a fine of up to _____ per violation. Which of the following is a reinstatement condition? Law of Agency Bob dies 12 months later. How do insurers predict the increase of individual risks? If the other agreement or condition is performed, then the conditional contract is . b. benefits paid under workers compensation. A provision that allows a policyowner to withdraw a policys cash value interest free is a(n), The Do Not Call Registry offers exemptions for calls placed from all of the following EXCEPT, All of these are valid options for an Adjustable Life Policy EXCEPT, The policys premium can be increased or decreased, An insurers claim settlement practices are regulated by the. An insurer exaggerating its dividends in a magazine advertisement. Which scenario would most life insurance policies exclude coverage for? A) Sister and brother collateral, What is implied authority defined as? 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. 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. One-sided or unfair insurance contracts can, however, exist if they contain provisions that disproportionately benefit one party. Legal 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? Updated 10/6/2017 9:10:03 AM. C) the terms must be accepted or rejected in full the contract must be aleatory It is not necessary for the parties to exchange unequal consideration in a conditional insurance contract. Question and answer. 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) producer's apparent authority Loans obtained by a policyowner against the cash value of a life insurance policy. 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. Peril Hazard Loss factor Liability, Which of these techniques will remove the risk of losing money in the stock market by never purchasing stocks? AzAnswer team is here with the right answer to your question. A contract that requires certain conditions or acts by the insured individual, According to life insurance contract law, insurable interest exists, The term which describes the fact that both parties of a contract may NOT receive the same value is referred to as. Which of these is considered to be a disadvantage of owning this type of annuity? 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? An insurance applicant with a below-average likelihood of loss is typically considered to be a. __________. Dependent term Guaranteed insurability Primary term Family term, Which type of life insurance offers flexible premiums, a flexible death benefit, and the choice of how the cash value will be invested? Insurance interest does NOT occur in which of the following relationships? In most cases, the insured is. 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? Eventually, they retire and dissolve the business. 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. C) promises made A life insurance policyowner does NOT have the right to, Fixed annuities provide each of the following EXCEPT. B) issuance of the policy 3. C) consideration Returning a portion of a premium as inducement to purchase insurance, An applicant intentionally lying to an insurance company on an application in order to obtain a cheaper premium is an example of, Authority that is not specifically given to an agent in the agency contract, but that an agent can reasonably assume to carry out. B) other insurance 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? D) collateral, Express power given to an agent in an agency agreement is A(n) ________ investigates, negotiates, and settles claims for a few on behalf of an insurance company. 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? Which course of action is the insurer entitled to when deliberate concealment is committed by the insured? A) underwriting Dorian exercises a nonforfeiture option by using his life policys cash value to purchase an extended term insurance option. a. medical expenses covered under Pat's employer-sponsored group health insurance. Options 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 The death benefit would be. Naming a contingent beneficiary as all surviving children is described as which term? 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?