Corporations, like all firms, can raise money by borrowing from banks and other lending institutions. A) One party is restored to the same financial position the party was in before the loss occurred B) The unequal exchange of value or consideration for both parties C) One party (the insurance company) prepares the contract with no negotiation between the applicant and insurer D) Only one party (the insurer) makes any kind of enforceable promise Which statement is CORRECT when describing a contract of adhesion? D) Conditional, Which of the following is NOT a requirement of a contract? Answer Explanation: A contract that requires certain conditions or acts by the insured individual. When the term insurance expires. Producers act in a(n) ________ capacity when holding insurance premiums. Karen is a producer who has obtained personal information about a client without having a legitimate reason to do so. 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? In order to maintain coverage and make a successful claim, its crucial that policyholders read and understand their insurance contract carefully. The gap between the total death benefit and the policys cash value. B) only one party (the insurer) makes any kind of legally enforceable promise B) errors and omissions B) A contract that has the potential for the unequal exchange of consideration for both parties Which of the following BEST describes a conditional insurance contract? there must be an offer and acceptance 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. Active Status Results Leave, A provision that allows a policyowner to temporarily give up ownership rights to secure a loan is called a(n) automatic premium loan nonforfeiture option collateral assignment irrevocable assignment, Period of time after the premium is due but the policy remains in force, What is an insurance policy's grace period? Which type of life insurance policy is this? Connect with others, with spontaneous photos and videos, and random live-streaming. Which of the following statements is true? 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. D) Evident authority, Which of the following is an example of the insured's consideration? Sharon is the policyowner of a $500,000 life insurance policy. A) underwriting The principle of insurable interest, in regards to a life insurance contract, is accurately described in which statement? D) Business owner and business client, Under a contract of adhesion, His insurance agent told him the policy would be paid up if he reached age 100. Which of the following best describes how you analyze a fiction text? 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 a. medical expenses covered under Pat's employer-sponsored group health insurance. A life insurance contract guarantees to the beneficiary not only a death benefit, but a payment of a sum of money in perpetuity, called a death benefit for that purpose of insurance coverage. Definition refers to a description which is given to a word, idea or phenomenon . Who assumes the investment risk with a fixed annuity contract? 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 C) Bob's spouse 3. 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? Which of the following is the best descriptive word? Which of these riders will pay a death benefit if the insureds spouse dies? Which market index is normally associated with an indexed annuitys rate of return? unilateral, Ambiguities in an insurance policy are always resolved in favor of the Which of these legislation Acts is designed to protect consumers with guidelines regarding credit reporting and distribution? A) Insurability 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? Whole life policy that pays out its cash value over a 20 year period Whole life policy with premiums paid up after 20 years Term life policy that returns cash value after 20 years Term life policy with premiums paid up after 20 years, Which type of multiple protection policy pays on the death of the last person? Which of the following statements about aleatory contracts is NOT true? warranty guarantee representation collateral, there must be legal reasons for entering into the contract, Legal purpose is a term used in contract law meaning there must be an offer and acceptance the contract must be aleatory there must be legal reasons for entering into the contract the contract must be a contract of adhesion, In an insurance contract, the element that shows each party is giving something of value is called offer acceptance consideration purpose, What makes an insurance policy a unilateral contract? Contestability clause, In order for a contract to be valid, it must A) voidable Notify me of follow-up comments by email. A) One party is restored to the same financial position the party was in before the loss occurred. AzAnswer team is here with the right answer to your question. B) Contract of adhesion D) conditions, The authority granted to a licensed producer is provided via the Policy loans are disallowed The premium payments will be tax deductible Pre-death distributions are typically taxable Withdrawals will be prohibited, When a whole life policy is surrendered, income taxes may be owed, All of these statements concerning whole life insurance are false EXCEPT Policyowner can take out a policy loan up to the face amount When a whole life policy is surrendered, income taxes may be owed Coverage is normally temporary The death benefit is not affected by outstanding loans, A life insurance policy which contains cash values that vary according to its investment performance of stocks is called Increasing Term Life Modified Whole Life Variable Whole Life Adjustable Whole Life, Which of these riders will pay a death benefit if the insured's spouse dies? Expert answered| selymi |Points 23307|. Field underwriting performed by the producer involves, Completing the application and collecting initial premium, An employee under a group insurance policy has the right to name a beneficiary and the right to, Convert to an individual policy in the event of employment termination. Describe the structure. 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. Multiple-choice. The terms and conditions of insurance contracts should be carefully reviewed by policyholders before signing. An insurance applicant with a below-average likelihood of loss is typically considered to be a. What would happen if a life insurance applicant is given a conditional receipt? A) Make whole Coverage decreases automatically Coverage increases automatically Coverage remains as long as proof of insurability is provided Coverage is eliminated, Joe has a life insurance policy that has a face amount of $300,000. Post thoughts, events, experiences, and milestones, as you travel along the path that is uniquely yours. Juvenile insurance Family income insurance Spouse insurance Term rider, A life insurance policy written on one contract for two people in which it is payable upon the first death is called Split Shared Joint Survivorship, Level premium permanent insurance accumulates a reserve that will eventually equal the face amount of the policy pay a dividend to the policyowner require the policyowner to make periodic withdrawals become larger than the face amount, A permanent life insurance policy where the policyowner pays premiums for a specified number of years is called a(n) adjustable policy limited pay policy level term policy variable universal policy, term, whole, and universal life insurance, What types of life insurance are normally used for key employee indemnification? A) offer Which type of annuity guarantees a stated number of income payments, whether or not the annuitant is still alive to receive them? The power given to an individual producer that is not specifically addressed in his/her contract is considered what type of authority? Interest on policy loans is tax deductible Premium payments are tax deductible Pre-death distributions will become taxable Cash value cannot be surrendered early, seeks temporary protection and lower premiums, Term insurance is appropriate for someone who seeks living benefits for themselves seeks a policy that builds cash value seeks temporary protection and lower premiums seeks permanent protection and higher premiums, Shirley has a $500,000 10-year non-renewable level term life policy. D) Personal contract, The importance of a representation is demonstrated in what rule? C) adhesion B) Parent and children 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) Implied authority both parties consent to the contract. B) Indemnity the terms must be accepted or rejected in full 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. When handling premiums for an insured, an agent is acting in which capacity? 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. The Fair Credit Reporting Acts main purpose is to, Protect consumers with guidelines regarding credit reporting and distribution, A whole life insurance policy accumulated cash value that becomes, The policy loan value which the insured may borrow against. How could a company manager use a process cost summary to determine if the program to reduce water usage is successful? 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). Which of the following statements correctly describes a contract of indemnity? $2,406 Which of the following BEST describes a conditional insurance contract? Which scenario would most life insurance policies exclude coverage for? Which of the following best describes a symbol. A person who is a nonsmoker, of average weight, and in excellent health would most likely be in which risk classification? Reduction of premium One year term Paid-up additions Accumulation at interest, All of these are valid policy dividend options for a life insurance policyowner EXCEPT cash outlay to the policyowner accumulate without interest reduction in policy premium buy additional insurance coverage, Kurt is an active duty serviceman who was recently killed in an accident while home on leave. definitions 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? Which Of The Following Best Describes A Conditional Insurance Contract, 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, D) A contract where only one party makes any kind of enforceable contract. there must be legal reasons for entering into the contract Which of these statements regarding the annuitant is CORRECT? In most insurance policies, the insurer is the only one who makes a legally binding promise to pay insured claims. voidable A contract that requires certain conditions or acts by the insured individual Which of these is considered to be a Living Benefit option in a life insurance 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? Which of the following best describe the term definition. Bob and Tom start a business. Her son, Mike, is the beneficiary. A) there must be an offer and acceptance An insurer exaggerating its dividends in a magazine advertisement. The death benefit would be $250,000 $750,000 $375,000 $500,000, What does the word "level" in Level Term describe? Barry offers Chris his mountain cabin for the weekend to secure his order for his insurance business. Which of the following is a requirement to attain an Utah resident producer license? A) A contract that requires certain conditions or acts by the insured individual D) imposed authority, What makes an insurance policy a unilateral contract? C) Apparent authority Premiums paid plus interest earned is returned to the beneficiary. It is not necessary for the parties to exchange unequal consideration in a conditional insurance contract. The face amount and premium will remain constant over the 10-year period. What is the meaning of par value of stock with respect to the corporate form of organization? Dorian exercises a nonforfeiture option by using his life policys cash value to purchase an extended term insurance option. legal reserve, What are an applicant's statements concerning occupation, hobbies, and personal health history regarded as? D) Only the insured is legally bound, Bob and Tom start a business. A) Parties involved in the contract Which of the following describes a person who is NOT acceptable by an insurer at standard rates because of health history, occupation, or hobbies? A(n) ________ investigates, negotiates, and settles claims for a few on behalf of an insurance company. Which policy requires an agent to register with the National Association of Securities Dealers (NASD) before selling? Which of the following would be a valid reason why a policy premium would be higher than the standard premium? Waiver of premium Juvenile waiver Guaranteed insurability Payor benefit, Which of the following is a reinstatement condition? C) there must be legal reasons for entering into the contract 30 seconds. Which of the following is true of the law of contracts? During periods of inflation, annuitants will experience a decrease in purchasing power of their payments. Which of these is considered to be a Living Benefit option in a life insurance policy? A) Insurer's promise to pay benefits Rob purchased a standard whole life policy with a $500,000 death benefit when we was age 30. What does the Group Life underwriting risk selection process help protect insurance companies from? 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. 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. collateral, What is implied authority defined as? B) A contract that has the potential for the unequal exchange of consideration for both parties insured C.$2,113 The policies continue in force with no change. A) A contract that requires certain conditions or acts by the insured individual The two major actions required for a policyowner to comply with the Reinstatement Clause are, Provide evidence of insurability, pay past due premiums, The term which describes the fact that both parties of a contract may NOT receive the same value is referred to as. A) producer's apparent authority It is not necessary for the parties to exchange unequal consideration in a conditional insurance contract. Which Of The Following Statements About Personal Selling Is Correct? 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. D) Insurance producers, If a material warranty violation on the part of the insured is found, what recourse does an insurer have?