issuance of the policy 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. This rider is called a(n). 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? 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? Barbaras policy includes a rider which allows her to purchase additional insurance at specific dates or events without evidence of insurability. Which of the following does a producer NOT have a fiduciary responsibility to? A policy containing exclusions or limits that are not clearly disclosed to the policyholder, or a premium that is significantly higher than the risk covered, could be considered unfair or one-sided. there must be an offer and acceptance 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). A) Only the insured pays the premium Which of the following is an annuity that is linked to a market-related index? 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. Consideration clause 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 contract must be aleatory A) underwriting Risk Hazard Indemnity Peril, Insurance companies determine risk exposure by which of the following? 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 BEST describes a conditional insurance contract? After a number of years, the policy's cash value accumulates to $50,000 and the face amount becomes $350,000. An insurer exaggerating its dividends in a magazine advertisement. warranty Which of the following BEST describes a conditional insurance contract? $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? After 15 years, the cash value has accumulated to $100,000 and the policy's face amount has become $600,000. In a life or health insurance contract, "consideration" would be the, statements made in the application and the premium, A professional liability for which producers can be sued for mistakes of putting a policy into effect is called. 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. C) Aleatory Write a summary of the main ideas. 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. What is created after policy proceeds are obtained in a lump sum and then immediately invested? 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. The policies continue in force with no change. 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. weegy. C) fiduciary trust b. benefits paid under workers compensation. B) issuance of the policy Sharon is the policyowner of a $500,000 life insurance policy. Your email address will not be published. In this situation, who will receive Bob's policy proceeds? A) there is an element of chance and potential for unequal exchange of value or consideration for both parties 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 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? A) Express A) A contract that requires certain conditions or acts by the insured individual C) Business partners Answer Explanation: A contract that requires certain conditions or acts by the insured individual. C) Consideration (B) Both parties adhere to the contract. A conditional contract, also called a hypothetical contract, is a contract agreement that only requires performance once the delineated conditions are met. Which of the following describes a person who is NOT acceptable by an insurer at standard rates because of health history, occupation, or hobbies? 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? D) Risk insured against, A professional liability for which producers can be sued for mistakes of putting a policy into effect is called Shirley has a $500,000 10-year-non-renewable level term life policy. D) imposed authority, What makes an insurance policy a unilateral contract? If the consumer price index had gone up 4%, how much may Ron increase the face value of the policy? C) statements made in the application and the premium 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 B) the contract must be aleatory a. medical expenses covered under Pat's employer-sponsored group health insurance. guarantee C) insurer 2003-2023 Chegg Inc. All rights reserved. implied The terms and conditions of insurance contracts should be carefully reviewed by policyholders before signing. In most insurance policies, the insurer is the only one who makes a legally binding promise to pay insured claims. there is the potential for an unequal exchange of value 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? Increasing Term Life policy Nonparticipating policy Modified Whole Life policy Universal Life policy, What is the automatic continuance of insurance coverage referred to as? Which of these statements regarding the annuitant is CORRECT? Which settlement option pays a stated amount to an annuitant, but no residual value to a beneficiary? if the insured lives beyond the 5 years, no benefits are payable. What does the Group Life underwriting risk selection process help protect insurance companies from? The insurer assuming the risk is called the mutual insurer reinsurer reciprocal insurer participating insurer, Karen is a producer who has obtained personal information about a client without having a legitimate reason to do so. b) a contract is an agreement enforceable at law. The policies continue in force with no change. The coverage, conditions, and limitations in the master policy of a group contract can be found in which document? Completing all applications and collecting initial premiums. Julie has a $100,000 30-year mortgage on her new home. C) consideration A) Tom's spouse A) fiduciary bond Naming a contingent beneficiary as all surviving children is described as which term? In this situation, who will receive Bob's policy proceeds? Expert answered| selymi |Points 23307|. What is the name of the provision which states that a copy of the application must be attached to the policy when issued? Because you're already amazing. 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. A) warranty The terms of the policy typically outline these conditions, which may include paying premiums on time and maintaining the insured property in good condition. Adjustable life policy Modified life policy Endowment policy Universal life policy, How are survivorship life insurance policies helpful in estate planning? B) premium only 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". Who assumes the investment risk with a fixed annuity contract? B) conditional Question. 30 seconds. If the other agreement or condition is performed, then the conditional contract is . other insurance Because of this, an insurance contract is considered 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).
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