The insured does not meet established underwriting requirements, The type of multiple protection coverage that pays on the death of the last person is called a(n). An example of an unfair claims practice would be, Failing to effectuate prompt, fair, and fair equitable settlements of a claim. d. a deductible stated in the policy's provision. 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? Accelerated death benefit An example of an unfair claims practice would be 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? Which of the following is NOT considered rebating? During periods of inflation, annuitants will experience a decrease in purchasing power of their payments. 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. 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? 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. Updated 10/6/2017 9:10:03 AM. express authority AzAnswer team is here with the right answer to your question. 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. Because of this, an insurance contract is considered Which of the following is an annuity that is linked to a market-related index? What is a corridor in relation to a Universal Life insurance policy? C) Bob's spouse D) statements made in the application only, C) statements made in the application and the premium, According to life insurance contract law, insurable interest exists 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) Both parties exchange goods of equal value. 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? 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? aleatory A) Insurable interest C) Charge more premium D) Tom, The deeds and actions of a producer indicate what kind of authority? 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. Which type of annuity guarantees a stated number of income payments, whether or not the annuitant is still alive to receive them? The terms of the policy typically outline these conditions, which may include paying premiums on time and maintaining the insured property in good condition. 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? 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) Insurance carriers 3. 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 A contract where only one party makes any kind of enforceable contract, statements made in the application and the premium, In a life or health insurance contract, "consideration" would be the offer and acceptance premium only statements made in the application and the premium statements made in the application only, 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 underwriting issuance of the policy promises made legal reserve, All of the following are elements of an insurance policy EXCEPT definitions other insurance claim forms conditions, The term which describes the fact that both parties of a contract may NOT receive the same value is referred to as Apparent Estoppel Aleatory Unilateral, Which of the following is an example of the insured's consideration? Preferred risk policies with reduced premiums are issued by insurance companies because the insured has, Better than average mortality or morbidity experience. 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. Log in for more information. representation 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 Completing all applications and collecting initial premiums. Intent, The deeds and actions of a producer indicate what kind of authority? Which of the following is a TRUE statement? Premiums paid plus interest earned is returned to the beneficiary. 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? $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? For a trip to the hospital, Evan Appleton paid $1,656 in hospital charges, a$750 insurance deductible, and a $457 co-payment. Conditional, Under a contract of adhesion, A paid premium C) fiduciary trust B) Indemnity An individual who removes the risk of losing money in the stock market by never purchasing stocks is said to be engaging in. Which of the following statements is true? Post thoughts, events, experiences, and milestones, as you travel along the path that is uniquely yours. a) a conditional acceptance allows the parties to negotiate the definite terms of the contract upon the completion of the contract. 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. Which of the following are the premium payments for a universal life policy NOT used for? Bob dies 12 months later. If the other agreement or condition is performed, then the conditional contract is . Adjustable life policy Modified life policy Endowment policy Universal life policy, How are survivorship life insurance policies helpful in estate planning? How could a company manager use a process cost summary to determine if the program to reduce water usage is successful? imposed authority, In an insurance contract, the element that shows each party is giving something of value is called Who prosecutes crimes that involve the violation of insurance laws that fall under US Code 1033? Your email address will not be published. B) Only the insured can change the provisions 2. Of the following dividend options, which of these is taxable? the contract is voidable upon proof of fraud. Naming a contingent beneficiary as all surviving children is described as which term? underwriter, Life Insurance Policies - Provisions, Options, Fundamentals of Financial Management, Concise Edition, Micro Oneliners: Urinary Tract Infections (UT. The power given to an individual producer that is not specifically addressed in his/her contract is considered what type of authority? Advertisement. B) A contract that has the potential for the unequal exchange of consideration for both parties C) representation D) Terminate the agent, Insurable interest does NOT occur in which of the following relationships? A) when any business relationship exists offer weegy. Which of the following policies does NOT build cash value? B) Unequal consideration C) Indemnity contract both parties consent to the contract. What types of life insurance are normally used for key employee indemnification? C) Only the insurer is legally bound 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. Insurance producer Jerry offers a $350 shopping card if they purchase an insurance product through him. Only the insured pays the premium C) promises made Barry offers Chris his mountain cabin for the weekend to secure his order for his insurance business. One-sided or unfair insurance contracts can, however, exist if they contain provisions that disproportionately benefit one party. 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. 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. _______ is the authority given to a producer to transact business on behalf of the insurer. A) Unilateral contract Which of these riders will pay a death benefit if the insureds spouse dies? C) adhesion 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? What is the advantage of adding this rider? Term insurance is appropriate for someone who, Seeks temporary protection and lower premiums. 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? In most cases, the insured is. ______ is NOT an element of a valid contract. Within how many days must a licensee notify the Commissioner of a change in address? After being properly appointed by the insurer. Events are those which cannot be controlled by either . Which of these statements is true? A) Sue the insured 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. With a life insurance contract, the insurer binds itself to pay a certain sum upon the death of the insured. The terms and conditions of insurance contracts should be carefully reviewed by policyholders before signing. A) Express C) Law of Agency 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. 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)? What does the word level in Level Term describe? B) Implied authority Authority given in writing to an agent in the agency agreement 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. When the term insurance expires. C) Implied 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? Insurers must maintain files of all documents used for solicitation for ____ year(s) after the last authorizes date of use. D) legal reserve, In an insurance contract, the element that shows each party is giving something of value is called A) Make whole Which of these statements is true? 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? Which of the following BEST describes a conditional insurance contract? conditional D) misrepresentation, Which of the following is NOT required in the content of a policy? 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? B) the contract must be aleatory Because of this, an insurance contract is considered voidable conditional aleatory unilateral, Who is responsible for assembling the policy forms for insureds? B) the insurer's obligations are dependent upon certain acts of the insured individual Which of these statements regarding the annuitant is CORRECT? C) apparent authority The period of coverage The face amount The premium payments The cash value, at a predetermined date or age, regardless of the insured's health, A Renewable Term Life insurance policy can be renewed at a predetermined date or age, regardless of the insured's health only if the insured provides evidence of insurability anytime at the policyowner's request typically with no change in premium, Pre-death distributions will become taxable, Under a Modified Endowment Contract, what are the likely tax consequences?