Her son, Mike, is the beneficiary. C) Bob's spouse Only the insured pays the premium C) consideration 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? C.$2,113 30 seconds. the insurer's obligations are dependent upon certain acts of the insured individual What is the purpose for having an accelerated death benefit on a life insurance policy? 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. Expert answered|Malekith22|Points 0| Log in for more information. This rider is called a(n). A(n) ________ investigates, negotiates, and settles claims for a few on behalf of an insurance company. B) Bob's estate Which of the following BEST describes a conditional insurance contract? A person who is a nonsmoker, of average weight, and in excellent health would most likely be in which risk classification? Sister and brother Parent and children Business partners Business owner and business client, The deeds and actions of a producer indicate what kind of authority? B) concealment Which of the following best describe the term definition. the terms must be accepted or rejected in full contain an offer and acceptance, In an insurance contract, the insurer is the only party legally obligated to perform. the contract must be aleatory All of these are typically sources of underwriting information for life or health insurance EXCEPT. B) issuance of the policy Which of the following statements about aleatory contracts is NOT true? An applicants character and personal habits can be obtained for underwriting purposes from which source? Which course of action is the insurer entitled to when deliberate concealment is committed by the insured? C) the terms must be accepted or rejected in full they are "take it or leave it" contracts. 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? b. benefits paid under workers compensation. A) voidable B) acceptance (D) Only one party is legally bound to the contract. In this situation, who will receive Bob's policy proceeds? If the consumer price index had gone up 4%, how much may Ron increase the face value of the policy? A paid premium What Benefit Does The Payor Clause On A Juvenile Life Policy Provide? A) fiduciary bond D) legal reserve, In an insurance contract, the element that shows each party is giving something of value is called A) Competent parties Who assumes the investment risk with a fixed annuity contract? Aleatory Contract: A contract type in which the parties involved do not have to perform a particular action until a specific event occurs. She would like to borrow $15,000 against the cash value. 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? A unilateral contract is one in which only one party makes a legally binding guarantee. The insurers obligation to pay a death benefit upon an approved death claim. After being properly appointed by the insurer. B) errors and omissions C) Legal purpose 2003-2023 Chegg Inc. All rights reserved. A symbol is a mark, sign or word that indicates, signifies, or is understood as representing an idea, object, or relationship, best describes a symbol. Which dividend option would an insurer invest the policyowners money and add any interest earnings as the dividends accrue? 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. It is not necessary for the parties to exchange unequal consideration in a conditional insurance contract. Where would policy proceeds be paid if both the insured and primary beneficiary were killed in the same accident? C) A contract where one party "adheres" to the terms of the contract. Barbaras policy includes a rider which allows her to purchase additional insurance at specific dates or events without evidence of insurability. What types of life insurance are normally used for key employee indemnification? Which of these statements regarding the annuitant is CORRECT? C) Only the insurer is legally bound What is the meaning of par value of stock with respect to the corporate form of organization? 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? The insured, on the other hand, makes few, if any, legally binding promises to the insurer. An insurer exaggerating its dividends in a magazine advertisement. Which of the following is an annuity that is linked to a market-related index? 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. During periods of inflation, annuitants will experience a decrease in purchasing power of their payments. In this situation, who will receive Bob's policy proceeds? Law of Agency performance is conditioned upon a future occurrence. GENERAL LAW OF CONTRACTS A contract is an agreement enforceable by law. 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? Death benefits Cash value Loading costs Separate account investments, Which policy feature makes a universal life policy different from a whole life policy? d. a deductible stated in the policy's provision. 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. 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? 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? 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. B) guarantee D) Personal contract, The importance of a representation is demonstrated in what rule? C) A contract where one party "adheres" to the terms of the contract A) insured A) Express authority Accelerated death benefit rider Waiver of premium rider Extended term option Decreasing term insurance. Pay owns a 20-pay life policy with a paid-up dividend option. nonparticipating life insurance policy participating life insurance policy divisible surplus life insurance policy straight life insurance policy, Which of the following is considered to be an event or condition that increases the probability of an insured's loss? be signed and witnessed by an attorney 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 Orissa purchases a 10-year level term life insurance policy that has a death benefit of $200,000. C) A contract where one party adheres to the terms of the contract underwriter, Life Insurance Policies - Provisions, Options, Fundamentals of Financial Management, Concise Edition, Micro Oneliners: Urinary Tract Infections (UT. An unintentional violation of Utah insurance law could lead a producer to a fine of up to _____ per violation. Adjustable universal life policy Flexible universal life policy Variable universal life policy Modified universal life policy, Jonas is a whole life insurance policyowner and would like to add coverage for his two children. Authority given in writing to an agent in the agency agreement Identify the type of financing (stock or bond) that best answers the question. D) Business owner and business client, Under a contract of adhesion, B) producer B) Offer and acceptance promises made Eventually, they retire and dissolve the business. Advertisement. collateral, What is implied authority defined as? D) Utmost good faith, What does the insurance term "indemnity" refer to? D) imposed authority, What makes an insurance policy a unilateral contract? The terms of the policy typically outline these conditions, which may include paying premiums on time and maintaining the insured property in good condition. Eventually, they retire and dissolve the business. Which of the following is a reinstatement condition? D) errors and oversights, In an insurance contract, the insurer is the only party legally obligated to perform. A) A contract that requires certain conditions or acts by the insured individual What are an applicants statements concerning occupation, hobbies, and personal health history regarded as? Barry offers Chris his mountain cabin for the weekend to secure his order for his insurance business. Countersignature, Which of the following is an example of the insured's consideration? b) a contract is an agreement enforceable at law. A) there must be an offer and acceptance Elizabeth is the beneficiary of a life insurance policy. Updated 10/6/2017 9:10:03 AM. 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. This is also known as a non-negotiable insurance contract, or an automatic contract. Which policy requires an agent to register with the National Association of Securities Dealers (NASD) before selling? B) implied authority apparent C) Law of Agency 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?
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