The death benefit would be. D) Business owner and business client, Under a contract of adhesion, Which of these is considered to be a disadvantage of owning this type of annuity? In this situation, who will receive Bob's policy proceeds? See answers. A unilateral contract is one in which only one party makes a legally binding guarantee. In most cases, the insured is. The terms and conditions of insurance contracts should be carefully reviewed by policyholders before signing. D) imposed authority, What makes an insurance policy a unilateral contract? Chapter3. Legal Concepts of the Insurance Contract A type of group that has a constitution and bylaws and has been organized for purposes other than obtaining insurance is called a(n). 2. 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? C) Charge more premium Lisa has recently bought a fixed annuity. Because of this, an insurance contract is considered Rob purchased a standard whole life policy with a $500,000 death benefit when we was age 30. What is a corridor in relation to a Universal Life insurance policy? C) adhesion She would like to borrow $15,000 against the cash value. The terms of the policy typically outline these conditions . The death benefit would be $250,000 $750,000 $375,000 $500,000, What does the word "level" in Level Term describe? Plot this function and determine if she is ready to attempt the Bluenose Marathon. Who prosecutes crimes that involve the violation of insurance laws that fall under US Code 1033? 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? there is the potential for an unequal exchange of value c) a contract must be in writing. B) written contract producer's apparent authority An insurer exaggerating its dividends in a magazine advertisement. To see this page as it is meant to appear, please enable your Javascript! Intent, The deeds and actions of a producer indicate what kind of authority? Offering payment of approved claims within 30 days after affirming liability. C) A contract where one party "adheres" to the terms of the contract. The terms of the policy typically outline these conditions, which may include paying premiums on time and maintaining the insured property in good condition. If she dies 15 years after the policys inception date, how much will her beneficiary receive? WINDOWPANE is the live-streaming app for sharing your life as it happens, without filters, editing, or anything fake. which of the following best describes a conditional insurance contract? Only the insurance company has legal obligations. b) a contract is an agreement enforceable at law. C.$2,113 B. Julie has a $100,000 30-year mortgage on her new home. A person who is a nonsmoker, of average weight, and in excellent health would most likely be in which risk classification? The policies continue in force with no change. During periods of inflation, annuitants will experience a decrease in purchasing power of their payments. B) concealment 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 B) only one party (the insurer) makes any kind of legally enforceable promise __________. Use the binomial distribution to find P(x13)P(x \leq 13)P(x13) if the stain removal product's claim is correct. 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. A Dalhousie University student training for distance running finds that, after running for x hours, her distance traveled, in kilometers, is given by, y=f(x)={10xif0x35x+15if3Free Flashcards about Stack #2476860 - StudyStack Eventually, they retire and dissolve the business. D) Terminate the agent, Insurable interest does NOT occur in which of the following relationships? B. Term insurance is appropriate for someone who, Seeks temporary protection and lower premiums. Which of these statements regarding the annuitant is CORRECT? His insurance agent told him the policy would be paid up if he reached age 100. performance is conditioned upon a future occurrence. 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? Rob recently died at age 60. A) definitions Typically, bilateral contracts involve an equal obligation or. conditions, Legal purpose is a term used in contract law meaning Under a life insurance policy, what does the insuring clause state? However, corporations also can raise money by selling bonds or issuing additional shares of stock. 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 Utah requires that an insurance producer must complete ___ hour(s) of continuing education on the subject of law and ethics every reporting period. What are an applicants statements concerning occupation, hobbies, and personal health history regarded as? which of the following best describes a conditional insurance contract Insurance Multiple-Choice Questions Flashcards Preview - Brainscape B) other insurance C) Contract must have a legal purpose The automatic premium loan provision authorized an insurer to withdraw from a policys cash value the amount of, Past due premiums that have not been paid by the end of the grace period. D) Only the insured is legally bound, Bob and Tom start a business. unilateral, Ambiguities in an insurance policy are always resolved in favor of the This rider is called a(n). only one party makes any kind of enforceable promise, the terms must be accepted or rejected in full, 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". Variable life insurance and Universal life insurance are very similar. Express Apparent Implied Conditional, The type of multiple protection coverage that pays on the death of the last person is called a(n) joint life policy survivorship life policy annuity joint policy dual life policy, A nonforfeiture option can be used to increase the death benefit, All of these are valid options for an Adjustable Life Policy EXCEPT The policy's premium can be increased or decreased The policy's death benefit can be increased or decreased A nonforfeiture option can be used to increase the death benefit The policy's protection period can be modified, A life insurance contract which accumulates cash values higher than the IRS will allow, A Modified Endowment Contract (MEC) is best described as A life insurance contract which accumulates cash values higher than the IRS will allow An annuity contract which was converted from a life insurance contract A modified life contract which enjoys all the tax advantages of whole life insurance A life insurance contract where all withdrawals prior to age 65 are subject to a 10% penalty, An interest-sensitive life insurance policyowner may be able to withdraw the policy's cash value interest free. 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? Accumulation at Interest Option Cash Dividend Option Paid-Up Additions Option One-Year Term Dividend Option, The policy may be paid up early by using policy dividends, Pat owns a 20-pay life policy with a paid-up dividend option. Which course of action is the insurer entitled to when deliberate concealment is committed by the insured? D. $2,863. aleatory What does a life insurance policy guarantee to the stated beneficiary upon the death of the insured? Which of the following statements is TRUE? Describe the structure. Which of the following BEST describes a conditional insurance contract? 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? After 15 years, the cash value has accumulated to $100,000 and the policy's face amount has become $600,000. Notify me of follow-up comments by email. 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 Term Straight Life Endowment Variable Life, A life insurance policy that has premiums fully paid up within a stated time period is called stated payment insurance limited universal insurance stated modified insurance limited payment insurance, Reggie purchased a life insurance policy with a face amount of $500,000. A minimum of 12 months after date of purchase, Insurance premium is determined by each of the following factors EXCEPT. A) implied authority Connect the text to your own experiences. Which Of The Following Statements About Personal Selling Is Correct? All of the following are considered appropriate uses if life insurance for business purposes EXCEPT, Protecting the business by covering entry level employees with life insurance, Level premium permanent insurance accumulates a reserve that will eventually. 2003-2023 Chegg Inc. All rights reserved. Georgia Life Insurance Exam Ch. 2 questions & answers for quizzes and weegy. 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. Aleatory Contract: A contract type in which the parties involved do not have to perform a particular action until a specific event occurs. Before using an assumed name in Utah, a producer MUST, Maria would like an annuity that provides a guaranteed accumulation or payout. ______ is NOT an element of a valid contract. What types of life insurance are normally used for key employee indemnification? C) representation The present cash value of the policy equals $250,000. B) issuance of the policy Insurance contracts are unilateral contracts. It is not necessary for the parties to exchange unequal consideration in a conditional insurance contract. Conditional Contracts: Everything You Need to Know - UpCounsel Under the McCarran-Ferguson Act, what is the minimum penalty for this? Dorian exercises a nonforfeiture option by using his life policys cash value to purchase an extended term insurance option. A life insurance policyowner does NOT have the right to, Fixed annuities provide each of the following EXCEPT. 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 D) misrepresentation, Which of the following is NOT required in the content of a policy? 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. All of the following statements about Carl's coverage are correct. Ken is a producer who has obtained Consumer Informations Reports under false pretenses. which of the following best describes a conditional insurance contract? B) Rescind the policy Barry offers Chris his mountain cabin for the weekend to secure his order for his insurance business. The terms and conditions of insurance contracts should be carefully reviewed by policyholders before signing. One-sided or unfair insurance contracts can, however, exist if they contain provisions that disproportionately benefit one party. D) Utmost good faith, What does the insurance term "indemnity" refer to? y=f(x)=10x5x+1535if0x3if3 C) fiduciary trust When handling premiums for an insured, an agent is acting in which capacity? Consideration clause The amount of his disability income payments for an on-the-job injury may be reduced by. Which of the following best describes a symbol. 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? Which of the following is an example of the insureds consideration? C) Indemnity contract What is the purpose for having an accelerated death benefit on a life insurance policy? D) an offer and acceptance of the contract terms, D) an offer and acceptance of the contract terms, In an insurance contract, the applicant's "consideration" is the Eventually, they retire and dissolve the business. 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. This is an example of: An example of unfair discrimination would be, When an insurer charges a higher rate for insurance based on an insureds race, religion, or national origin, Fixed period settlement options are considered to be a form of a(n). Insurance Quiz (MCQs) Archives - Management Notes discreet 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. be filed with the state Which option was chosen? If thats the case, you dont have to worry anymore. It is the means by which one or more parties bind themselves to certain promises. Administrative actions taken against a producer must be reported to the Commissioner within ____ days. 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? Log in for more information. In the case of an insurance contract, the contracting parties are the claimant and the insurer. 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. What does the Group Life underwriting risk selection process help protect insurance companies from? D) both the policyowner and the insurer must know all material facts and relevant information, B) only one party (the insurer) makes any kind of legally enforceable promise, Intentional withholding of material facts that would affect an insurance policy's validity is called a(n)
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