A life insurance policyowner does NOT have the right to, Fixed annuities provide each of the following EXCEPT. Flashcards - Connecticut Insurance Test 2021 - FreezingBlue voidable Question and answer. Eventually, they retire and dissolve the business. Which of the following statements is TRUE? Options 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 Which of these is considered to be a disadvantage of owning this type of annuity? 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. representation The death benefit would be. The gap between the total death benefit and the policys cash value. Which of these riders will pay a death benefit if the insureds spouse dies? Julie has a $100,000 30-year mortgage on her new home. Insurer's promise to pay benefits Which of these features are held exclusively by variable universal life insurance? A (D) Only one party is legally bound to the contract. An insurance applicant with a below-average likelihood of loss is typically considered to be a. 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 is an example of the insureds consideration? After 15 years, the cash value has accumulated to $100,000 and the policy's face amount has become $600,000. Science Study Guide Questions. B) Equal consideration is required between the involved parties A) implied authority B) Offer and acceptance Bob dies 12 months later. What are conditions in an insurance policy? D) Tom, The deeds and actions of a producer indicate what kind of authority? A) State Insurance Departments Multiple-choice. D) Principal Capacity, A unilateral contract is one in which which of the following best describes a conditional insurance contract? D) Consideration clause, When the principal gives the agent authority in writing, it's referred to as claim forms It is not necessary for the parties to exchange unequal consideration in a conditional insurance contract. Which of the following statements about aleatory contracts is NOT true? At what point may a producer sell insurance for an insurer? Which contract element is insurable interest a component of? C) adhesion B) Consideration Which Of The Following Best Describes A Conditional Insurance Contract B. Are you looking for the correct answer to the question Which of the following BEST describes a conditional insurance contract?? Which settlement option pays a stated amount to an annuitant, but no residual value to a beneficiary? Sister and brother Which of the following best describes how you analyze a fiction text D) Utmost good faith, What does the insurance term "indemnity" refer to? The provision that allows this is called Partial Surrender Subrogation Automatic Premium Loan Accelerated Death Benefit, All of these are characteristics of a universal life insurance policy EXCEPT Flexible death benefit Fixed surrender value Flexible premiums Builds cash value, Which of the following policies does NOT build cash value? C) insurer She would like to borrow $15,000 against the cash value. D) Terminate the agent, Insurable interest does NOT occur in which of the following relationships? A non-contributory health insurance plan helps the insurer avoid. Term, whole, and universal life insurance. 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. D) legal reserve, In an insurance contract, the element that shows each party is giving something of value is called The automatic premium loan provision authorized an insurer to withdraw from a policys cash value the amount of, Past due premiums that have not been paid by the end of the grace period. contain an offer and acceptance, In an insurance contract, the insurer is the only party legally obligated to perform. The power given to an individual producer that is not specifically addressed in his/her contract is considered what type of authority? 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? 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? C) Legal purpose Lisa has recently bought a fixed annuity. D) A contract where only one party makes any kind of enforceable contract, A) A contract that requires certain conditions or acts by the insured individual, All of the following are elements of an insurance policy EXCEPT Chapter 3: Legal Concepts Flashcards | Quizlet Typically, bilateral contracts involve an equal obligation or. Sorry, you have Javascript Disabled! Period of time after the initial premium is paid and before the policy is issued Period of time it takes for a policy's underwriting to complete Period of time after a policy is issued and before it is delivered to policyowner Period of time after the premium is due but the policy remains in force, Life insurance policies will normally pay for losses arising from commercial aviation war suicide hazardous jobs, A policyowner may exercise which of these dividend options that uses the dividend to pay all or part of the next premium due? The terms of the policy typically outline these conditions . which of the following best describes a conditional insurance contract The power given to an individual producer that is not specifically addressed in his/her contract is considered what type of authority? Which of the following BEST describes a conditional insurance 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. Which scenario would most life insurance policies exclude coverage for? A) Express aleatory 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. During periods of inflation, annuitants will experience a decrease in purchasing power of their payments. Which of the following products would allow him to accomplish this? What is the name of the provision which states that a copy of the application must be attached to the policy when issued? What is the meaning of par value of stock with respect to the corporate form of organization? What is created after policy proceeds are obtained in a lump sum and then immediately invested? Countersignature, Which of the following is an example of the insured's consideration? Which of the following policies does NOT build cash value? c) a contract must be in writing. Conditional Contracts: Everything You Need to Know - UpCounsel Which option was chosen? legal reserve, What are an applicant's statements concerning occupation, hobbies, and personal health history regarded as? Within how many days must a licensee notify the Commissioner of a change in address? A) estoppel Which of the following BEST describes a conditional insurance contract 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. y=f(x)=10x5x+1535if0x3if3Which Of The Following Best Describes A Conditional Insurance Contract 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. Chapter 3 Legal Concepts of the Insurance Contract - Quizlet 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. The type of annuity she is seeking is called. A contract that requires certain conditions or acts by the insured individual. 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. Andy the annuitant dies before the annuity start date. Law of Agency ______ is NOT an element of a valid contract. Which of these legislation Acts is designed to protect consumers with guidelines regarding credit reporting and distribution? 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. Asked 10/6/2017 7:04:21 AM. Which of the following describes a person who is NOT acceptable by an insurer at standard rates because of health history, occupation, or hobbies? C) Insurable interest Insurance Multiple-Choice Questions Flashcards Preview - Brainscape A) insured B) Unequal consideration A) One party is restored to the same financial position the party was in before the loss occurred. D) Business owner and business client, Under a contract of adhesion, 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? How often must the Commissioner examine each domestic insurance company? Under the McCarran-Ferguson Act, what is the minimum penalty for this? All of the following are examples of a Business Continuation Plan EXCEPT. 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? C) promises made A) there must be an offer and acceptance Which of the following best describes a conditional insurance contract Which of the following is a TRUE statement? the insurer's obligations are dependent upon certain acts of the insured individual be signed and witnessed by an attorney $2,406 The authority granted to a licensed producer is provided via the B) the contract must be aleatory A) Authority given in writing to an agent in the agency agreement A) warranty C) the authority to represent the insurer Describe the structure. 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. B) guarantee apparent ______ is NOT an element of a valid contract. Which type of annuity guarantees a stated number of income payments, whether or not the annuitant is still alive to receive them? In which form of corporate financing is the investor also an owner? Reduction of premium dividend option Extended term option Paid-up option Cash dividend option, Net death benefit will be reduced if the loan is not repaid, Joanne has a $100,000 whole life policy with an accumulated $25,000 of cash value. An example of an unfair claims settlement practice is, Turning down a claim without providing the basis of denial. Which of the following is a requirement to attain an Utah resident producer license? Eventually, they retire and dissolve the business. Both partners are still married at the time of Bob's death. there is the potential for an unequal exchange of value What guarantees that the statements supplied by an insurance applicant are true? How soon can the benefit payments begin with a deferred annuity? Which of the following best describes how you analyze a fiction text? Ken is a producer who has obtained Consumer Informations Reports under false pretenses. WINDOWPANE is the live-streaming app for sharing your life as it happens, without filters, editing, or anything fake. Her son, Mike, is the beneficiary. Question. Which type of multiple protection policy pays on the death of the last person? underwriting 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? If Mike dies first, the policy proceeds will no longer provide insurance protection will go to Mike's estate will be divided by probate will not be paid until the last brother dies, The gap between the total death benefit and the policy's cash value, What is a corridor in relation to a Universal Life insurance policy? How do marketers use insights regarding the self-concept? Which of the following BEST describes a conditional insurance contract? producer's apparent authority Insurable interest can be based on the love and affection of individuals related by blood or law An applicant intentionally lying to an insurance company on an application in order to obtain a cheaper premium is an example of Contestability clause, In order for a contract to be valid, it must The insured, on the other hand, makes few, if any, legally binding promises to the insurer. Legal purpose B) Contract of adhesion Under the Fair Credit Reporting Act, what is the maximum penalty that may be imposed on Ken? An insurer exaggerating its dividends in a magazine advertisement. A) express authority Which of the following best describe the term definition What does a life insurance policy guarantee to the stated beneficiary upon the death of the insured? only one party makes any kind of enforceable promise, the terms must be accepted or rejected in full, 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". Cash surrender Extended term insurance Reduced paid-up insurance Life income annuity, Which type of rider will waive the premium on a child's life insurance policy if the parent paying the premium dies? Consideration Both partners are still married at the time of Bob's death. C) Business partners 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) the appearance of authority an insurer gives to its agent there must be legal reasons for entering into the contract Identify the type of financing (stock or bond) that best answers the question. Net death benefit will be reduced if the loan is not repaid No interest will be charged on loan balance Term life policies are the only type of insurance that allows policy loans A loan can be taken out for up to the face amount of the policy, Ownership of a life insurance policy may be temporarily transferred with a(n) collateral assignment absolute assignment transferable assignment beneficiary assignment, provide evidence of insurability to the insurer, In order to activate the reinstatement clause of a lapsed life insurance policy, the insured MUST remit all past-due premiums within the grace period provide evidence of insurability to the insurer resubmit a new life insurance application provide a valid reason for the lapse, Which of the following is considered to be an alternative to a life settlement?