which of the following best describes a conditional insurance contract

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) 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? issuance of the policy A bilateral contract is an agreement between two parties in which each side agrees to fulfill their side of the bargain. How could a company manager use a process cost summary to determine if the program to reduce water usage is successful? However, corporations also can raise money by selling bonds or issuing additional shares of stock. D) collateral, Express power given to an agent in an agency agreement is She is receiving the death benefit in payments of $10,000 per month until the principal and interest has been paid out. Which of these would NOT be an unfair claims practice? Which of the following is the best descriptive word? It is a government agency that collects medical information on the insured from the insurance companies C. It is a member organization that protects against insolvent insurers D. 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? there must be legal reasons for entering into the contract 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. 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. Which of the following best describes a symbol. A) Unilateral Rob purchased a standard whole life policy with a $500,000 death benefit when we was age 30. Premium clause C) statements made in the application and the premium representation 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? D) A contract where only one party makes any kind of enforceable contract, Answer:A) A contract that requires certain conditions or acts by the insured individual. It is a nonprofit organization that maintains underwriting information on applicants for life and health insurance. A) Insurer's promise to pay benefits A) One party is restored to the same financial position the party was in before the loss occurred. B) implied authority Which of the following statements about aleatory contracts is NOT true? What does the Group Life underwriting risk selection process help protect insurance companies from? An applicants character and personal habits can be obtained for underwriting purposes from which source? the contract must be aleatory Which policy requires an agent to register with the National Association of Securities Dealers (NASD) before selling? contain an offer and acceptance, In an insurance contract, the insurer is the only party legally obligated to perform. C.$2,113 C) promises made Question and answer. Which of the following statements is true? Authority given in writing to an agent in the agency agreement B) Period to which the coverage exists 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 discreet A) Parties involved in the contract The policies continue in force with no change. D) Intent, Which contract element is insurable interest a component of? Which type of annuity guarantees a stated number of income payments, whether or not the annuitant is still alive to receive them? A rating from a rating service company, such as A.M. Best An illustration A sales presentation Direct mailing from an agency, Fraternal Benefit Society has each of the following characteristics EXCEPT Incorporated Without capital stock Exist For profit Exist for the benefit of its members, A plan in which an employer pays insurance benefits from a fund derived from the employer's current revenues is called A self-derived plan A multiple-employer plan A blanket plan A self-funded plan, An insurer's ability to make unpredictable payouts to policyowners is called investment values liquidity assets capital, Ken is a producer who has obtained Consumer Information Reports under false pretenses. Law of large numbers U.S. Census Average mortality incidents Experience of morbidity, Insurance represents the process of risk selection avoidance transference assumption, Doctors pooling their money to cover malpractice exposures, An example of risk sharing would be Adding more security to a high-risk building Choosing not to invest in the stock market Doctors pooling their money to cover malpractice exposures Buying an insurance policy to cover potential liabilities, All of the following are examples of pure risk EXCEPT Losing money at a casino Injured while playing football Falling at a casino and breaking a hip Jewelry stolen during a home robbery, the terms must be accepted or rejected in full, Under a contract of adhesion, there is the potential for an unequal exchange of value the insurer's obligations are dependent upon certain acts of the insured individual the terms must be accepted or rejected in full only one party makes any kind of enforceable promise, According to life insurance contract law, insurable interest exists when any business relationship exists at the time of application at the time of death only when determined by a judge, In an insurance contract, the insurer is the only party legally obligated to perform. Dorian exercises a nonforfeiture option by using his life policys cash value to purchase an extended term insurance option. Definition refers to a description which is given to a word, idea or phenomenon . 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. Who prosecutes crimes that involve the violation of insurance laws that fall under US Code 1033? D) Insurance producers, If a material warranty violation on the part of the insured is found, what recourse does an insurer have? A.$1,656 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. Shirley has a $500,000 10-year-non-renewable level term life policy. With a life insurance contract, the insurer binds itself to pay a certain sum upon the death of the insured. Which of the following statements correctly describes a contract of indemnity? 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". Bob dies 12 months later. C) Contract must have a legal purpose Term insurance is appropriate for someone who, Seeks temporary protection and lower premiums. Which Of The Following Best Describes A Conditional Insurance Contract. 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). An insurer's claim settlement practices are regulated by the Securities and Exchange Commission (SEC) National Association of Claims Adjusters (NACA) National Association of Insurance Commissioners (NAIC) State insurance departments, A life insurance company has transferred some of its risk to another insurer. they are "take it or leave it" contracts. Both partners are still married at the time of Bob's death. c) a contract must be in writing. Rob recently died at age 60. A. Which of the following best describes the MIB? Sharing commissions with a producer licensed in the same line of business. 1 pt. Insurance interest does NOT occur in which of the following relationships? 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? 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 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? Which of the following BEST describes a conditional insurance contract? A) Express A) there must be an offer and acceptance A life insurance policy that is subject to a contract interest rate is referred to as. 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? All of the following statements about Carl's coverage are correct. What does the word level in Level Term describe? What would happen if a life insurance applicant is given a conditional receipt? If she dies 15 years after the policy's inception date, how much will her beneficiary receive? 0 Answers/Comments. A conditional contract, also called a hypothetical contract, is a contract agreement that only requires performance once the delineated conditions are met. One-sided or unfair insurance contracts can, however, exist if they contain provisions that disproportionately benefit one party. What are an applicants statements concerning occupation, hobbies, and personal health history regarded as? Consideration clause Which of the following is a TRUE statement? 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. This is also known as a non-negotiable insurance contract, or an automatic contract. What is the purpose for having an accelerated death benefit on a life insurance policy? Both partners are still married at the time of Bob's death. Required fields are marked *. 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. State Insurance Departments NAIC Insurance carriers Insurance producers, Intentional withholding of material facts that would affect an insurance policy's validity is called a(n) estoppel concealment adhesion misrepresentation, The power given to an individual producer that is not specifically addressed in his/her contract is considered what type of authority? 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. 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. which of the following best describes a conditional insurance contract? Julie has a $100,000 30-year mortgage on her new home. (C) Both parties exchange goods of equal value. D) Personal contract, The importance of a representation is demonstrated in what rule? 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? An example of an unfair claims practice would be, Failing to effectuate prompt, fair, and fair equitable settlements of a claim. Adjustable life policy Modified life policy Endowment policy Universal life policy, How are survivorship life insurance policies helpful in estate planning? C) Law of Agency Authority given to handle claims and process payments The terms of the policy typically outline these conditions . 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). How often must the Commissioner examine each domestic insurance company? Which of these statements regarding the annuitant is CORRECT? 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? the insurer's obligations are dependent upon certain acts of the insured individual C) adhesion apparent Identify the type of financing (stock or bond) that best answers the question. Legal purpose A) offer Which of the following BEST describes a conditional insurance contract? 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 All of the following are examples of pure risk EXCEPT. renewal reinstatement resumption renovation, the MEC tends to be an investment vehicle, Pre-death distributions from a modified endowment contract (MEC) receive different tax treatment than other life insurance policies because the MEC has tax deductible premiums the MEC is considered an illegal product the MEC tends to be an investment vehicle the MEC does not accumulate cash value, The face amount and premium will remain constant over the 10-year period, Krissa purchases a 10-year level term life insurance policy that has a death benefit of $200,000. A paid premium 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. 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. The gap between the total death benefit and the policy's cash value The gap between when a claim is filed and when the death benefit is received The amount of interest that has accumulated in the policy's cash value The point in time when the policy's cash value reaches $0, Rob purchased a standard whole life policy with a $500,000 death benefit when he was age 30. Anheuser-Busch InBev is trying to reduce its water usage. 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? Express A) voidable 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? The power given to an individual producer that is not specifically addressed in his/her contract is considered what type of authority? B) at the time of application How do marketers use insights regarding the self-concept? A) underwriting Intentional withholding of material facts that would affect an insurance policy's validity is called a(n). Express Apparent Implied Conditional, The type of multiple protection coverage that pays on the death of the last person is called a(n) joint life policy survivorship life policy annuity joint policy dual life policy, A nonforfeiture option can be used to increase the death benefit, All of these are valid options for an Adjustable Life Policy EXCEPT The policy's premium can be increased or decreased The policy's death benefit can be increased or decreased A nonforfeiture option can be used to increase the death benefit The policy's protection period can be modified, A life insurance contract which accumulates cash values higher than the IRS will allow, 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 prior to age 65 are subject to a 10% penalty, An interest-sensitive life insurance policyowner may be able to withdraw the policy's cash value interest free. D) Offer and acceptance must be involved, B) Equal consideration is required between the involved parties, A contract requires producer's apparent authority Expert answered|Malekith22|Points 0| Log in for more information. D) errors and oversights, In an insurance contract, the insurer is the only party legally obligated to perform. 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 Notify me of follow-up comments by email. Which settlement option pays a stated amount to an annuitant, but no residual value to a beneficiary? Before using an assumed name in Utah, a producer MUST, Maria would like an annuity that provides a guaranteed accumulation or payout. B) Implied authority How do insurers predict the increase of individual risks? Which scenario would most life insurance policies exclude coverage for? Countersignature, Which of the following is an example of the insured's consideration? A policyowner is prohibited from making any changes to the policy without the beneficiarys written consent under which beneficiary designation? B) Contract of adhesion A Dalhousie University student training for distance running finds that, after running for x hours, her distance traveled, in kilometers, is given by, y=f(x)={10xif0x35x+15if3

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