Which of the following best describes how you analyze a fiction text? C) apparent authority D) Evident authority, Which of the following is an example of the insured's consideration? Where would policy proceeds be paid if both the insured and primary beneficiary were killed in the same accident? Which of the following is a reinstatement condition? 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. B) conditional A life insurance policyowner does NOT have the right to, Fixed annuities provide each of the following EXCEPT. A) express authority Which of these factors is NOT taken into account when determining an applicants life insurance needs? Pay owns a 20-pay life policy with a paid-up dividend option. Which of these features are held exclusively by variable universal life insurance? His insurance agent told him the policy would be paid up if he reached age 100. Her son, Mike, is the beneficiary. a) a conditional acceptance allows the parties to negotiate the definite terms of the contract upon the completion of the contract. Insurer's promise to pay benefits there must be legal reasons for entering into the contract A) the appearance of authority an insurer gives to its agent C) there must be legal reasons for entering into the contract Karen is a producer who has obtained personal information about a client without having a legitimate reason to do so. Q. 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? In the case of an insurance contract, the contracting parties are the claimant and the insurer. A) underwriting 2003-2023 Chegg Inc. All rights reserved. Implied b) a contract is an agreement enforceable at law. What types of life insurance are normally used for key employee indemnification? Dorian exercises a nonforfeiture option by using his life policys cash value to purchase an extended term insurance option. D) Terminate the agent, Insurable interest does NOT occur in which of the following relationships? A) Unilateral 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? B) the insurer's obligations are dependent upon certain acts of the insured individual B) other insurance All of these are typically sources of underwriting information for life or health insurance EXCEPT. 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? C.$2,113 Only the insurance company has legal obligations. A) Express authority D) Only the insured is legally bound, Bob and Tom start a business. 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 military service exclusion clause would pay upon his death? Which of the following BEST describes a conditional insurance contract? Which of the following is an example of the insureds consideration? A) Sister and brother If the other agreement or condition is performed, then the conditional contract is . 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. 0 Answers/Comments. c. income earned by Pat's spouse. D) collateral, Express power given to an agent in an agency agreement is 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. Because you're already amazing. What would happen if a life insurance applicant is given a conditional receipt? A non-contributory health insurance plan helps the insurer avoid. which of the following best describes a conditional insurance contract? B) Equal consideration is required between the involved parties (A) Both parties to the contract are bound to the terms. Insurance interest does NOT occur in which of the following relationships? C) the contract has been prepared by one party (the insurance company) with no negotiation between the applicant and the insurer express authority C) representation D) Principal Capacity, A unilateral contract is one in which The authority granted to a licensed producer is provided via the Which of the following does a life insurance policy summary normally include? guarantee Which Of The Following Statements About Personal Selling Is Correct? Under the McCarran-Ferguson Act, what is the minimum penalty for this? Events are those which cannot be controlled by either . Which of these is considered to be a disadvantage of owning this type of annuity? Which of the following best describe the term definition. conditional imposed authority, In an insurance contract, the element that shows each party is giving something of value is called Under the Fair Credit Reporting Act, what is the maximum penalty that may be imposed in Ken? With a life insurance contract, the insurer binds itself to pay a certain sum upon the death of the insured. A contract that requires certain conditions or acts by the insured individual. A) there is the potential for an unequal exchange of value B) NAIC A) Parties involved must be competent Producers act in a(n) ________ capacity when holding insurance premiums. AzAnswer team is here with the right answer to your question. Which of these statements is true? An individual who removes the risk of losing money in the stock market by never purchasing stocks is said to be engaging in. 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. 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. Bob dies 12 months later. producer's apparent authority Definition refers to a description which is given to a word, idea or phenomenon . After first premium is paid, the face amount may be available to the beneficiary, Level premium term life insurance policies, Have premiums that are averaged over the policy period, A policyowner can receive an immediate payment before the insured dies by using a(n), Matt is applying for life insurance and requests a double indemnity rider. representation 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. promises made 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 In this situation, who will receive Bob's policy proceeds? The terms and conditions of insurance contracts should be carefully reviewed by policyholders before signing. Sorry, you have Javascript Disabled! Because of this, an insurance contract is considered Which of these riders will pay a death benefit if the insureds spouse dies? Business partners Apparent the terms must be accepted or rejected in full What kind of policy is this? B) at the time of application 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? Only the insured pays the premium An insurance applicant with a below-average likelihood of loss is typically considered to be a. D) Conditional, Which of the following is NOT a requirement of a contract? C) Charge more premium Question and answer. y=f(x)=10x5x+1535if0x3if3