be in writing A) there is an element of chance and potential for unequal exchange of value or consideration for both parties D) Tom, The deeds and actions of a producer indicate what kind of authority? If she dies 15 years after the policy's inception date, how much will her beneficiary receive? Flashcards - Connecticut Insurance Test 2021 - FreezingBlue Within how many days must a licensee notify the Commissioner of a change in address? Free Flashcards about Stack #2476860 - StudyStack A new stain removal product claims to completely remove the stains on 909090 percent of all stained garments. Accelerated death benefit An example of an unfair claims practice would be apparent 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? 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. Provide funds to help fund retirement Provide funds to help pay taxes Provide funds for funeral expenses Provide tax deductions for premium payments, lower than the typical whole life policy during the first few years and then higher than typical for the remainder, The premium for a Modified whole life policy is higher than the typical whole life policy during the first few years and then lower than typical for the remainder lower than the typical whole life policy during the first few years and then higher than typical for the remainder normally graded over a period of 20 years level for the first 5 years then decreases for the remainder of the policy, The type of policy which pays on the death of the last person is called joint life survivorship life dual life shared life, A life insurance policy that is subject to a contract interest rate is referred to as adjustable life group life term life universal life, a policy that is paid up after only one payment, A single premium cash value policy can be described as a policy that is paid up after only one payment a policy that only requires an annual payment a policy that is guaranteed issue a policy that covers two or more lives, A limited payment whole life policy provides protection for 20 years lifetime protection protection for more than one person discounted premiums, A policyowner may change two policy features on what type of life insurance? A) fiduciary bond Vegetable B. She is receiving the death benefit in payments of $10,000 per month until the principal and interest has been paid out. implied authority This is called risk retention preexisting conditions law of large numbers adverse selection, What is known as the immediate specific event causing loss and giving rise to risk? Insurers must maintain files of all documents used for solicitation for ____ year(s) after the last authorizes date of use. Which of the following statements about aleatory contracts is NOT true? Which of these statements regarding the annuitant is CORRECT? Policy Summary Buyer's Guide Entire Contract Entire Policy, It allows for cash advances to be paid against the death benefit if the insured becomes terminally ill, What is the purpose for having an accelerated death benefit on a life insurance policy? What types of life insurance are normally used for key employee indemnification? Bob dies 12 months later. Sharing commissions with a producer licensed in the same line of business. B) Rescind the policy C) aleatory 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 After a number of years, the policy's cash value accumulates to $50,000 and the face amount becomes $350,000. Which of the following best describe the term definition. Which statement is CORRECT when describing a contract of adhesion? Which of the following products would allow him to accomplish this? Which of the following would be a valid reason why a policy premium would be higher than the standard premium? Which of the following would be an act of Unfair Discrimination by an insurer? Guaranteed Insurability rider Family term insurance rider Family whole insurance rider Payor benefit rider, A partial surrender is allowed in which of the following life policies? A) Parties involved in the contract Which of the following best describes a symbol 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. What are an applicants statements concerning occupation, hobbies, and personal health history regarded as? Which option was chosen? Because of this, an insurance contract is considered definitions Chapter 3 Legal Concepts of the Insurance Contract - Quizlet A) offer 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? B) errors and omissions 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. Which of the following statements is true? $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? One-sided or unfair insurance contracts can, however, exist if they contain provisions that disproportionately benefit one party. How soon can the benefit payments begin with a deferred annuity? 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? Updated 10/6/2017 9:10:03 AM. Eventually, they retire and dissolve the business. Use the binomial distribution to find P(x13)P(x \leq 13)P(x13) if the stain removal product's claim is correct. Risk reduction Risk transference Risk avoidance Risk retention, The cause of a loss is referred to as a(n) hazard adversity peril risk, How do insurers predict the increase of individual risks? Chapter 1 - Completing the application, underwriting, and - Chegg C) consideration His insurance agent told him the policy would be paid up if he reached age 100. A) Legal be signed and witnessed by an attorney promises made 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. Both partners are still married at the time of Bob's death. 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? A non-contributory health insurance plan helps the insurer avoid. Barbaras policy includes a rider which allows her to purchase additional insurance at specific dates or events without evidence of insurability. B) Parent and children However, corporations also can raise money by selling bonds or issuing additional shares of stock. 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. (A) Both parties to the contract are bound to the terms. C) Probability of loss Which of the following best describe the term definition A) estoppel Which type of life insurance offers flexible premiums, a flexible death benefit, and the choice of how the cash value will be invested? A) the appearance of authority an insurer gives to its agent Asked 10/6/2017 7:04:21 AM. which of the following best describes a conditional insurance contract Eventually, they retire and dissolve the business. D) Evident authority, Which of the following is an example of the insured's consideration? Both partners are still married at the time of Bob's death. 2 See answers This is also known as a non-negotiable insurance contract, or an automatic contract. Adhesion clause B) written contract C) the contract has been prepared by one party (the insurance company) with no negotiation between the applicant and the insurer 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) legal reserve, In an insurance contract, the element that shows each party is giving something of value is called aleatory The present cash value of the policy equals $250,000. B) Equal consideration is required between the involved parties 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. offer In this situation, who will receive Bob's policy proceeds? A(n) ________ investigates, negotiates, and settles claims for a few on behalf of an insurance company. A policyowner can receive a percentage payment of the death benefits prior to death by using what kind of contract? (D) Only one party is legally bound to the contract. Which of the following is an example of the insureds consideration? The power given to an individual producer that is not specifically addressed in his/her contract is considered what type of authority? 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. A) express authority She would like to borrow $15,000 against the cash value. D) underwriter, Reasonably necessary acts that an agent must perform for carrying out his/her expressly authorized duties are covered by an agent's Only the insured pays the premium B) NAIC Which of the following is a requirement to attain an Utah resident producer license? A person who is a nonsmoker, of average weight, and in excellent health would most likely be in which risk classification? An applicants character and personal habits can be obtained for underwriting purposes from which source? 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? Express Adjustable life insurance Decreasing term insurance Increasing term insurance Modified life insurance, A spouse and child can be added to the primary insured's coverage as what kind of rider? Her son, Mike, is the beneficiary. A) Tom's spouse Modified Endowment Contract Current assumptive whole life Credit life insurance Equity index whole life, What kind of life insurance policy covers two or more people with the death benefit payable upon the last person's death? b) a contract is an agreement enforceable at law. Which of the following BEST describes a conditional insurance contract? d) an agreement requires a definite offer and an indefinite acceptance. The terms of the policy typically outline these conditions, which may include paying premiums on time and maintaining the insured property in good condition. discreet apparent implied express, Bob and Tom start a business. What is the meaning of par value of stock with respect to the corporate form of organization? When the principal gives the agent authority in writing, its referred to as, The terms must be accepted or rejected in full. Under a life insurance policy, what does the insuring clause state? 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) B) the unwritten authority that the agent is assumed to have Which Of The Following Best Describes A Conditional Insurance Contract. Only the insurance company has legal obligations. C) apparent authority WINDOWPANE is the live-streaming app for sharing your life as it happens, without filters, editing, or anything fake. His insurance agent told him the policy would be paid up if he reached age 100. A) Make whole D) Competent parties, Which of the following BEST describes a conditional insurance contract? C) fiduciary trust What was his total bill? they are "take it or leave it" contracts. C) adhesion 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. A) Only the insured pays the premium 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?